Multiple Choice
The following are advantages of using EVA as a performance measure EXCEPT:
A) EVA can substitute for explicit monitoring by top management.
B) EVA makes the cost of capital visible to operating management,thereby reducing capital employed.
C) EVA does not measure present values.
D) EVA highlights business units that are underperforming their peers.
Correct Answer:
Verified
Correct Answer:
Verified
Q11: An advantage of stock-based performance compensation for
Q19: In the U.S.,tax advantages exist to compensating
Q21: The following are agency problems associated with
Q24: CEOs of U.S. companies receive the highest
Q26: According to the survey of senior managers
Q26: Define the term economic income.
Q29: A firm has an average investment of
Q50: Which of the following actions-all else equal-will
Q61: Which of the following actions-all else equal-will
Q66: Shareholders typically rely on independent auditors to