One Caveat of Using EVA as a Measure of Performance

question 3

Multiple Choice

One Caveat of using EVA as a measure of performance measurement is, managers:

• A) may not have incentive to work hard.
• B) may overstate earnings.
• C) may cut back production.
• D) none of these.

---

Definitions:

Rent Control

Government policy or laws that set limits on the amount of rent a landlord can charge tenants, often aimed at making housing affordable.

Urban Areas

Areas characterized by higher population density and vast human features in comparison to areas surrounding them.

Vacancy Rate

A measure used in real estate to indicate the percentage of all available units in a rental property, such as apartments or offices, that are vacant or unoccupied at a particular time.

Tax

An obligatory financial contribution or another kind of levy enforced on taxpayers by government entities to support government operations and a range of public spending.