Multiple Choice
Managers on a fixed salary often fall victim to the following temptations:
A) reduced effort, needless spending on perks or private benefits, and avoiding risks.
B) reduced effort, needless spending on perks or private benefits, and entrenching investments.
C) reduced effort, needless spending on perks or private benefits, empire building, and entrenching investments.
D) reduced effort, needless spending on perks or private benefits, empire building, entrenching investments, and avoiding risks.
Correct Answer:

Verified
Correct Answer:
Verified
Q43: A factory manager can improve EVA by<br>A)increasing
Q44: The economic rate of return on an
Q45: Define the term economic value added (EVA).
Q46: A firm has an average investment of
Q47: Accounting income takes no account of the
Q49: When firms award stock options to managers
Q50: Which of the following actions-all else equal-will
Q51: A firm has an average investment of
Q52: EVA is used for<br>A)measuring performance within the
Q53: The following capital expenditures are typically included