Which of the Following Statements Is CORRECT

question 19

Multiple Choice

Which of the following statements is CORRECT?

• A) Actions that increase reported net income will always increase cash flow.
• B) One way to increase EVA is to generate the same level of operating income but with less total invested capital.
• C) One drawback of EVA as a performance measure is that it mistakenly assumes that equity capital is free.
• D) One way to increase EVA is to achieve the same level of operating income but with more total invested capital obtained at a higher cost of capital.
• E) If a firm reports positive net income,its EVA must also be positive.

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Definitions:

Shaper Role

In team dynamics, the role of pushing a team towards action and shaping the direction of the team's work.

Thrive Under Pressure

The ability to perform very well in stressful situations.

Forming Stage

The initial phase in the development of a team, characterized by members getting to know each other and establishing group norms.

Group Development

The stages or phases that a team undergoes from formation to achieving effectiveness and accomplishing its objectives.