Which of the Following Statements Is True Concerning Economic Value

question 62

Multiple Choice

Which of the following statements is true concerning Economic Value Added?

• A) A growing number of firms tie managers' compensation to EVA.
• B) A profitable firm will always have a positive EVA.
• C) EVA recognizes that the cost of capital is not a real cost.
• D) If a firm has positive present value of growth opportunities it will have positive EVA.

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Definitions:

Advance Directive

Legal documents that outline a person's wishes regarding medical treatment in circumstances where they are unable to communicate them directly.

Communicate

The act of conveying information or expressing thoughts and feelings through speech, writing, or other forms of expression.

Code of Ethics

A written set of guidelines that outlines the ethical standards and expected behaviors for professionals in a specific field.

Professional Responsibility

The ethical and professional obligations that individuals in a profession are expected to uphold.