When Evaluating Managerial Actions,which of the Following Alternate Measures Overcomes

question 169

Multiple Choice

When evaluating managerial actions,which of the following alternate measures overcomes many of the problems with ROI?

• A)Residual Income
• B)EVA
• C)Both Residual Income and EVA.
• D)Neither Residual Income nor EVA.

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Definitions:

Revenue

The total amount of income generated by the sale of goods or services related to the company's primary operations.

Cash Dividends

Payments made by a corporation to its shareholders from profits, distributing earnings in the form of cash.

Equity Securities

Equity securities represent ownership interest held in a company by investors in the form of shares of stock, which may generate income through dividends and potential appreciation.

Highly Liquid Securities

Financial instruments that can easily be converted into cash with minimal impact on their price.