What is the meaning of negative residual income or eva

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Reference no: EM13938607

1. Discuss the differences between centralized and decentralized decision making.

2. What is decentralization?

3. Explain why firms choose to decentralize.

4. What are margin and turnover? Explain how these concepts can improve the evaluation of an investment center.

5. What are the three benefits of ROI? Explain how each benefit can lead to improved profitability.

6. What is residual income? What is EVA? How does EVA differ from the general definition of residual income?

7. Can residual income or EVA ever be negative? What is the meaning of negative residual income or EVA?

8. What is a transfer price?

Reference no: EM13938607

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