The Principal Driver(s)of Shareholder Value Is (Are)

question 64

Multiple Choice

The principal driver(s) of shareholder value is (are)

• A) profitability.
• B) profit growth.
• C) market share.
• D) profitability and profit growth.
• E) all of these choices.

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Definitions:

Pretax Return

The earnings of a company before taxes have been deducted.

Working Capital

The gap between what a business owns in current assets and owes in current liabilities, showing the available liquidity to cover daily operational costs.

Salvage Value

The anticipated amount an asset is expected to sell for once it reaches the end of its life span.

Pretax Return

The income or profit earned by a business before the deduction of tax.