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:

Liabilities

Obligations owed by a business to either creditors or suppliers, often in the form of loans or accounts payable.

Net Income

The amount of money a company has earned after all expenses, including taxes and costs, have been subtracted from total revenue.

Beginning Equity

The amount of owners' equity in a business at the start of an accounting period, reflecting the net value of the business's assets minus its liabilities.

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.