DEA Will Show All but One Operating Unit to Be

question 11

True/False

DEA will show all but one operating unit to be relatively inefficient in the case where an operating unit producing the most of every output and also consumes the least of every input.

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Definitions:

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall market capitalization remains the same.

Pre-split Price

Refers to the stock price of a company before it undergoes a stock split, a process that increases the number of shares while reducing the price per share without affecting the company's overall market capitalization.

Post-split Price

The value of an individual share after a company has completed a stock split.