What Is an Advantage of Using Balanced Scorecard

question 33

Multiple Choice

What is an advantage of using balanced scorecard?

• A) It eliminates the need to communicate the details of an incentive plan to the employees.
• B) It eliminates managerial effort when providing incentives to employees.
• C) It increases the pay for all employees in the organization regardless of their performances.
• D) It reduces employee stress because it does not focus on financial targets.
• E) It helps employees understand the organization's goals.

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Definitions:

EPS

Earnings Per Share; an indicator of a company's profitability, calculated as the company's net income divided by the number of its outstanding shares.

Capital Restructuring

Changing a firm’s capital structure intentionally by buying and selling stocks and bonds simultaneously.

Leverage

Leveraging borrowed money to enhance the expected gains from an investment.

Financial Risk

The chance of experiencing financial loss from an investment or enterprise because of different economic elements.