The Following Are Advantages of Using EVA as a Performance

question 24

Multiple Choice

The following are advantages of using EVA as a performance measure EXCEPT:

• A)EVA can substitute for explicit monitoring by top management.
• B)EVA makes the cost of capital visible to operating management,thereby reducing capital employed.
• C)EVA does not measure present values.
• D)EVA highlights business units that are underperforming their peers.

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Definitions:

Nonviolence

A principle or practice of using peaceful means, rather than force, to bring about political or social change.

Booker T. Washington

An influential African American educator, author, and advisor to several U.S. presidents, advocating for African American advancement through education and economic self-reliance.

White Racism

A belief or doctrine asserting the superiority of white people over people of other racial backgrounds, often manifesting in social, economic, and political systems.

Nuclear Weapons

Explosive devices that derive their destructive force from nuclear reactions, either fission or a combination of fission and fusion, posing significant threats to global security.