The Balanced Scorecard Includes Both Leading and Lagging Indicators

question 125

Multiple Choice

The balanced scorecard includes both leading and lagging indicators.Which of the following correctly places each indicator on the spectrum of most leading to most lagging?

• A)Financial → Customer → Internal business process → Learning and growth
• B)Financial → Learning and growth → Internal business process → Customer
• C)Customer → Learning and growth → Internal business process → Financial
• D)Learning and growth → Internal business process → Customer → Financial

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Definitions:

Common Stock

A form of investment that signifies part ownership in a corporation, granting the investor voting privileges and a portion of the company's earnings through dividends.

Equity Method

An accounting technique used for recording investments in associated companies where the investor has significant influence but does not control the company outright.

Voting Stock

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.

Dividend Revenue

Dividend revenue is income received from owning shares in a company that pays dividends.