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Why is EVA also useful for small companies (even with less than 100 employees) ? (Cont.)
- The EVA concept is easy to understand and easy to use
- EVA helps to understand the concept of profitability even by persons not familiar with finance and accounting
- In a small company, managers can make the EVA concept transparent to all employees in a short time
- EVA helps to convert a small company’s strategy into objectives tangible for all employees
- EVA is a useful tool for allocation of a small company’s scarce capital resources
- The EVA concept integrated in a small company’s decisions making process improves its business performance
because managers having deeper knowledge about capital and capital cost are able to make better decisions
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