Why May EVA Be Considered a Better Measure for Rewarding

question 14

Multiple Choice

Why may EVA be considered a better measure for rewarding managers than SVA?

• A) EVA can be fine-tuned to measure an individual's performance.
• B) EVA is not as easily manipulated by managers as SVA.
• C) EVA values are more comparable from period-to-period than SVA.
• D) EVA does not include estimates of future performance.
• E) EVA focuses managers on current profits rather than long-term gains.

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Definitions:

Caldera

A vast volcanic hollow created by a significant explosion that results in the collapse of the volcano's opening.

Pyroclastic Deposits

Accumulations of volcanic materials, such as ash, tephra, and lava bombs, ejected explosively from a volcano.

Volcanic Mudflows

Volcanic mudflows, also known as lahars, are fast-moving, deadly flows of mud, rocky debris, and water that originate from volcanic eruptions or the melting of snow and ice atop volcanoes.

Composite Volcano

A volcano composed of layers of hardened lava, tephra, and volcanic ash, typically having a steep profile and explosive eruptions.