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.

Understand how technology, taxes, and government regulations affect a firm's cost curves.

Apply the concepts of variable costs, fixed costs, and sunk costs to real-life business scenarios.

Understand the concept of sunk costs and their irrelevance in current decision-making.

Identify the conditions under which sunk costs become irrelevant for current and future decision-making.

---

Definitions:

Social Networks

Platforms or communities where individuals interact, share ideas, and establish relationships, often facilitated by technology.

Brain Parts

The various anatomical structures of the brain, each with specific functions related to cognition, emotion, and behavior.

Body Weight

The numerical value representing an individual's mass, often used as an indicator of health, and calculated in units such as pounds or kilograms.

Domesticated Dogs

Dogs that have been selectively bred and genetically adapted over thousands of years to live closely with humans, exhibiting traits that favor companionship and utility.