Value-based management

Classify each of the following statements as true or false. In each case, provide reasons for your answer.

1.Value-based management is a method of decreasing return on assets.

2.. Economic value added is a single-period measure.

3.Economic value added is equivalent to return on investment.

4.The measure of economic value added has similar disadvantages to residual income.

5.. Measures of shareholder value can be used to evaluate new business strategies, as well as mergers and acquisitions.