Which of the Following Statements Is CORRECT

question 7

Multiple Choice

Which of the following statements is CORRECT?

• A) One way to increase EVA is to achieve the same level of operating income but with more investor-supplied capital.
• B) If a firm reports positive net income,its EVA must also be positive.
• C) One drawback of EVA as a performance measure is that it mistakenly assumes that equity capital is free.
• D) One way to increase EVA is to generate the same level of operating income but with less investor-supplied capital.
• E) Actions that increase reported net income will always increase net cash flow.

---

Definitions:

Persona

The aspect of someone's character that is presented to or perceived by others; a role or character adopted by an individual.

Jung

Carl Jung, a Swiss psychiatrist and psychoanalyst who founded analytical psychology.

Social Graces

The skills of polite, proper, and respectful interaction and behavior in social settings, often considered essential for smooth social interactions.

Anima

In Jungian psychology, the unconscious feminine side of a man's personality or a man’s inner personal femininity.