Question
Which of the following is NOT a disadvantage of Residual Income as a performance measure? a) Residual Income does not always align manager's interests with
Which of the following is NOT a disadvantage of Residual Income as a performance measure?
a) Residual Income does not always align manager's interests with shareholders interests?
b) Residual Income cannot be used as a relative performance measure
c) All of the above
d) The magnitude of Residual Income generally depends on the sheer magnitude of the investment
*b is incorrect
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Management Audits
Authors: Allan J. Sayle
3rd Edition
0951173901, 978-0951173909
