37. Which of the following statements is true concerning economic value added (EVA)?

a.	EVA alleviates the shortcoming of the return on investment measurement.
b.	EVA calculates a percentage for comparison purposes.
c.	EVA is required by the New York Stock Exchange.
d.	EVA is the same as economic payback analysis.

38. Effective incentive compensation plans must induce individual behavior compatible with increasing the firm's wealth. Deferred compensation is given for

a.	short-term performance.
b.	long-term incentive.
c.	particular actions or extraordinary performance.
d.	None of the answers is correct.

39. The expectancy view of motivation recommends

a.	improving performance evaluation processes.
b.	providing a high probability that behaving as the organization wishes will lead to rewards.
c.	creating incentive plans that include stock options.
d.	both a and b above.

40. The theory which maintains that people act in ways to obtain the rewards that they desire and prevent the penalties that they wish to avoid is called the

a.	agency theory.
b.	reward-penalty theory.
c.	expectancy theory.
d.	mini-max theory.