The Only Measure of Firm Performance That Accounts for Cost

question 71

Multiple Choice

The only measure of firm performance that accounts for cost of capital is:

• A) ROC.
• B) ROA.
• C) ROE.
• D)EVA.

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Definitions:

John Watson

An American psychologist who established the psychological school of behaviorism, emphasizing the importance of observable behavior over internal processes.

Long-term Potentiation

A long-lasting enhancement in signal transmission between two neurons that results from stimulating them synchronously, closely related to synaptic plasticity and memory formation.

Hippocampus

A crucial part of the brain responsible for memory formation and spatial navigation.

Neural Communication

The process by which neurons transmit signals to each other through synapses, enabling the functioning of the nervous system.