Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Behaviour of divisional senior executives?
EVA can affect the behaviour of divisional senior executives in the following ways.
1. They would concentrate their investment decisions on maximising shareholder value or financial wealth of their shareholders.
2. They would concentrate on the maximisation of cash or contribution which is more likely to maximise shareholder value e.g. EVA cannot be manipulated by a manager's choice over the accounting policies they might use.
3. They would focus on long-term decisions as opposed to short-term decisions e.g. with relative measures like return on investment (ROI) often new investments deliver low profit and have high accounting book values in the early years. This often discourages managers in the short-term from undertaking investment due to a low ROI.
4. Because a finance charge is applied against the replacement cost of assets, it forces managers to use and invest in assets more efficiently.
5. EVA will not discourage expenditure on long-term assets building for the future such as marketing or research and development. This is because these items will not be deducted entirely when arriving at economic profit, instead amortised over the period of the expenditures useful economic life. This would lead to perhaps greater EVA when compared to the measure of accounting profit. With accounting profit it is more likely the entire cost would be deducted and therefore could deter a manager if assessed on accounting measures such as residual income or return on investment.
Question: (a) The prevailing business environment is continuously changing with respect to the emerging complexities in the development and use of new equipment, technologies a
Bert's Bonsai sells Bonsai plants, tools and materials to cultivate them, and literature in book and magazine form. An early adopter of electronic records, they are still happily u
Procedural History: The plaintiff filed an action for negligence under Texas law and the trial court granted summary judgment in favor of the defendants. All you are d
How much does it cost to get someone to write phase V Individual project Strategic Human Capital Management
your own company. Consider how this organization has developed their strategic management. Then write an original article addressing how this organization selected a model of strat
.” Differentiate between corporate mission and strategic vision by taking corporate illustrations
Q. Diffrence between ROCE and RI? Both ROCE and RI are good measures to use when assessing financial performance, since both consider the capital invested, as well as the profi
Consider the Chester River Health System (CRHS) Strategic Planning example. Taking information only from these two sources into account, formulate an Environmental Assessment of CR
play cesim online challenge game 6 round
Strategy development processes Vision and mission statements There was no announcement about Aldi's mission statement, but it's vision relates to offer its customers in
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd