Because of the belief that accounting-based numbers such as ROI, ROE, and EPS are not reliable indicators of a corporation's economic value, which method of corporate performance is now touted?
A) shareholder value
B) basic earning power
C) price/earnings ratio
D) profit margin on sales
E) return on assets

Question

Quizplus · Accepted Answer

Shareholder value is considered a more comprehensive measure of corporate performance as it focuses on the overall value created for shareholders, taking into account both financial performance and market perceptions.

Because of the Belief That Accounting-Based Numbers Such as ROI