The Income That Is Earned Above the Specified Minimum Level

question 167

Multiple Choice

The income that is earned above the specified minimum level of return is referred to as

• A)EVA.
• B)residual income.
• C)segment income.
• D)operating income.

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Definitions:

Utilitarianism

A philosophical theory that posits the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Shareholder Well-being

The state of health, happiness, and prosperity of individuals who own shares in a corporation.

Stakeholders

Parties that have an interest or concern in an organization, which can affect or be affected by the business’s actions, objectives, and policies.

Individual Freedom

The liberty of an individual to act, speak, or think without unwarranted or unnecessary restrictions by the state or others.