The EVA (Economic Value Added) Is a Guide to Estimating

question 3

Multiple Choice

The EVA (economic value added) is a guide to estimating how much a company earns in comparison to

• A) competitive firms.
• B) a stock index such as the Dow Jones industrial average.
• C) the cost of capital.
• D) the average return on government bonds.

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Definitions:

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained.

Capitalist System

An economic and social system in which trade, industries, and the means of production are largely or entirely privately owned and operated for profit.

Deviant Behavior

Actions or conduct that deviate from societal norms and expectations, often eliciting negative sanctions.

Unequal Distribution

A situation where resources, wealth, or opportunities are not evenly allocated among all members of a society or group.