The EVA Calculation and the ROI Calculation Both Use Operating

question 154

True/False

The EVA calculation and the ROI calculation both use operating income before income tax because the income tax expense is NOT relevant to either the EVA or the ROI measures.

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Definitions:

Deregulation

The process of removing or reducing government regulations and restrictions in an industry, typically with the intention of improving competition and innovation.

Subsidization

The provision of financial assistance by a government or other entity to support or promote a specific industry, commodity, or activity.

Commodification

The process of treating goods, services, ideas, or people as commodities, thus making them subject to trade in a market.

Nationalization

The process by which a government takes control of a previously private sector business or industry.