Question

higher EVA implies ____ bonuses to employees​

Answer 1

Explanation:

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Answer 2

Higher EVA implies higher bonuses to employees.

Definition of EVA;

EVA- refers to the economic value added showing the  value of the investment.

Higher EVA- represents the high value of investment from the funds.

Characteristics of EVA;

• EVA takes all the cost including the investment of a capital making it economic profit.
• Higher EVA represents the higher bonuses to employees gaining overall company's interest.
• It shows the companies business whether it is profitable or not.
• They make every decisions and runs the company on the basis of EVA.

Therefore, EVA implies the profit to the company and the investment from the funding.