Which of the Following Is a Key Difference Between EVA

question 7

Multiple Choice

Which of the following is a key difference between EVA and residual income?

• A) The weighted average cost of capital is used to calculate EVA, but not necessarily for residual income.
• B) Net profit is used to calculate residual income but is irrelevant for EVA.
• C) EVA has a long term focus, but residual income has a short term focus.
• D) There is no difference between EVA and residual income.

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Definitions:

Seed Germination

The process by which a seed begins to grow and develops into a new plant, often triggered by water absorption and temperature.

Hormone

Chemical substances produced in the body that regulate the activity of cells or organs, essential for every function from growth and metabolism to reproduction.

Vernalization

A process involving the exposure of seeds or young plants to prolonged cold temperatures to induce flowering.

Flowering

The biological process where plants develop and produce flowers, often preceding fruit and seed production.