Companies that adopt the Economic Value Added concept define investment as total assets employed minus current liabilities.

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Quizplus · Accepted Answer

This statement is true. Companies that use the Economic Value Added (EVA) concept consider investment as total assets employed minus current liabilities. EVA is a performance metric that evaluates a company's ability to generate value for its investors. It measures the difference between a company's return on invested capital and the cost of that capital. By focusing on economic profit, EVA aims to guide investment decisions that create long-term value for shareholders.

Companies That Adopt the Economic Value Added Concept Define Investment