The Formula for Economic Value Added Is

question 8

Multiple Choice

The formula for economic value added is:

• A) Net operating profit after tax - (Minimum required rate of return × Invested capital)
• B) Net operating profit after tax - (Weighted average cost of capital × Average total assets)
• C) Net operating profit before tax - (Minimum required rate of return × Average total assets)
• D) Net operating profit after tax - (Weighted average cost of capital × Invested capital)

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Definitions:

Transnational Corporations

Large companies that operate and have assets in more than one country, having a significant influence on global economics and politics.

Collective Resistance

The act of standing together to oppose or challenge authority, policies, or societal norms, often in the context of social movements.

Capitalism

An economic system based on the private ownership of the means of production and their operation for profit.

Socialism

An economic and political system where the means of production are owned and controlled by the public or the state, with the goal of distributing wealth and resources more evenly across society.