Economic Value Added Is

question 59

Multiple Choice

Economic value added is:

• A) a long-term performance measure of economic value created over a long period of time.
• B) a calculation that does not take into account how the investment is financed.
• C) is a measure of the economic increase in an entity's value after an appropriate charge for capital has been deducted.
• D) all of the options are true.

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Definitions:

Audit

A systematic examination and evaluation of financial records or transactions of an entity to ensure accuracy, compliance with standards, or regulations.

Investment

The allocation of resources, such as capital or time, in expectation of generating a future return or benefit.

Corporate Social Responsibility

Refers to business practices involving initiatives that benefit society and demonstrate care for the environmental and social impacts of a company's operations.

Credit Risk

The risk that a borrower will not repay a loan according to the terms, leading to a financial loss for the lender.