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:

Impressed Voltage

The voltage applied across a circuit or component, not necessarily resulting from direct contact.

Applied Voltage

The electrical potential difference deliberately introduced to a circuit or device.

Capacitive Reactance

The opposition that a capacitor offers to alternating current (AC), which decreases as the frequency of the AC increases, calculated as 1/(2πfC) where f is the frequency and C is the capacitance.

Series Connection

A circuit configuration in which components are connected end-to-end, providing a single path for current flow.