Which of the Following Is NOT One of the Three

question 42

Multiple Choice

Which of the following is NOT one of the three key value drivers behind the EVA approach?

• A)Net operating profits after tax (NOPAT),which are similar to part of the free cash flow concept,EBIT × (1 - t).
• B)The investment in net working capital.
• C)The investment in capital.
• D)The cost of capital.

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Definitions:

Power

Involves the capacity or ability of an individual or group to influence or control the actions of others in a desired direction.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Influence

The process of affecting the thoughts, behavior, and feelings of another person.

Legitimate Power

Refers to the authority an individual holds as a result of their position or role within an organization, perceived as rightful by members.