How Does EVA Encourage the Right Kind of Behaviour from Divisions

question 92

Multiple Choice

How does EVA encourage the right kind of behaviour from divisions?

• A)through its emphasis on after-tax net income
• B)through its emphasis on total capital employed
• C)through its emphasis on true cost of capital
• D)through its emphasis on before-tax operating income

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Definitions:

Indifferent To Pain

A condition or state in which an individual does not perceive or respond emotionally to pain in a typical manner.

Violent Crimes

Offenses that involve force or threat of force, including murder, rape, robbery, and assault.

Catatonia

A psychiatric condition marked by abnormal movements and behaviors, including stiffness, mutism, and stupor.

Unresponsive

The condition or quality of not reacting or responding to external stimuli or inputs.