Which One of These Statements Is Correct

question 21

Multiple Choice

Which one of these statements is correct?

• A) Market value added measures the difference between the total market value and the total book value of equity.
• B) Net income is also called economic value added.
• C) EVA measures the net profit of a firm after deducting the cost of the assets used in the production process.
• D) EVA considers the cost of long-term debt financing but excludes the cost of equity financing.

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Definitions:

Driving Forces

Factors or elements that influence or propel individuals, groups, or organizations towards achieving a goal or initiating change.

Following Forces

Relates to the factors or influences that drive or shape the direction of trends, movements, or behaviors in a society or field.

Mechanistic Organization

A form of organization characterized by rigid hierarchies, high levels of formalization, and centralized decision-making, often seen in traditional, large-scale businesses.

Organic Design

A design philosophy that promotes harmony between the natural environment and human habitation, often emphasizing sustainability and fluidity.