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True or false: EVA can be described as one approach to value-based management of an enterprise.

Option 1:
True

Option 2:
False

User CharlesB
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1 Answer

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Final answer:

The statement option: 1 True. EVA can be described as one approach to value-based management of an enterprise is true. EVA is a financial performance metric that helps in assessing a company's true economic profit.

Step-by-step explanation:

True or false: EVA can be described as one approach to value-based management of an enterprise. The correct answer is Option 1: True. Economic Value Added (EVA) is indeed a measure used by companies to determine the value they create beyond the required return of their shareholders. It is a financial performance method to calculate the true economic profit of a corporation. EVA is used within value-based management frameworks to assess a company's financial performance and decisions, factoring in the cost of capital.

User Ledawg
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