An Advantage of Using Economic Value Added as a Performance

question 59

Multiple Choice

An advantage of using economic value added as a performance indicator is:

• A)Minimisation of suboptimal decision-making
• B)The charge for capital can be varied to take into account various levels of risk
• C)Adjustments can be made to the components within the equation to suit the specific circumstances of each division
• D)all of the above

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Definitions:

Reorganization

A process undertaken by companies or entities to rearrange their legal, ownership, operational, or other structures for efficiency, survival, or growth.

Componential Intelligence

An aspect of intelligence theory that focuses on an individual's analytical abilities, including problem-solving, logical reasoning, and the handling of complex concepts.

Experiential Intelligence

Intelligence derived from personal experiences and the capacity to apply knowledge gained from those experiences in practical settings.

Contextual Knowledge

Understanding that is shaped by the circumstances or context in which it is encountered, influencing how information is interpreted and applied.