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:

Binding Decisions

Refers to final judgments, rulings, or agreements that parties are legally obligated to follow.

Non-Lawyer

An individual who does not have the legal qualifications or license to practice law.

Appealed

The process of seeking a higher court's review of a lower court's decision in hopes of overturning or modifying the decision.

ADR Contract Clause

A clause that specifies that the parties to the agreement have promised to use an alternative dispute resolution technique when a disagreement arises rather than litigating the issue.