When Establishing Criteria to Measure the Success of a Business,managers

question 14

Multiple Choice

When establishing criteria to measure the success of a business,managers should:

• A)limit their attention to financial measures such as profit and return on investment since these are the only objective and quantifiable measures available.
• B)focus most of their attention on measures of employee satisfaction,since without good employees the firm will not be competitive.
• C)focus primarily on financial measures,but pay some attention to nonfinancial concerns.
• D)recognize that,while financial measures are important and should be considered,the purpose of the firm is to satisfy both internal and external customers.

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Definitions:

Social Responsibility

The ethical framework suggesting that an entity, be it an organization or individual, has an obligation to act for the benefit of society at large.

Societal Well-Being

Societal Well-Being refers to the overall health, happiness, and prosperity of a society, considering various factors such as economic, social, and environmental aspects.

Consumer Satisfaction

The measure of how products or services supplied by a company meet or surpass customer expectation.

Compliance Officer

A person who ensures that a company complies with its outside regulatory requirements and internal policies.