Based on a Comprehensive Survey of U

question 80

Multiple Choice

Based on a comprehensive survey of U.S.companies,the most common financial performance measure used in annual and long-term incentive plans for senior executives is

• A)return on equity.
• B)economic value added.
• C)return on capital.
• D)net income or revenues.

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Definitions:

Autonomous Consumption

The level of consumption that occurs when income levels are zero, representing the expenditures that consumers must make even when they have no income.

Terrible Depression

An extremely severe and prolonged downturn in economic activity, characterized by significant declines in GDP, employment, and production.

APC

Average Propensity to Consume, indicating the percentage of income that an individual or average consumer spends rather than saves.

Disposable Income

The total amount of money available for an individual or household to spend or save after taxes have been deducted.