EVA Encourages the Right Kind of Behavior from Divisions Because

question 13

Multiple Choice

EVA encourages the right kind of behavior from divisions because of its emphasis on

• A)after-tax net income.
• B)total capital employed.
• C)true cost of capital.
• D)before-tax operating income.

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Definitions:

Dose-Response Relationship

The relationship between the quantity of a drug or other exposure and the magnitude of the effect it has on an organism.

Predictive Validity

The extent to which a test or measurement can accurately forecast or predict future outcomes or behaviors.

Criterion Validity

The extent to which a test's results correlate with other measures or outcomes that are already accepted as reflecting the variable being tested.

Epidemiological

Relating to the study of the distribution and determinants of health and diseases in populations.