One of the Results in Using Balanced Scorecards Is a Shift

question 53

Multiple Choice

One of the results in using balanced scorecards is a shift from a focus on financial results to a focus on:

• A) maximizing market share.
• B) minimizing budgetary slack.
• C) eliminating fraudulent behavior.
• D) increasing customer satisfaction.

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Definitions:

Risk-Return Trade-Off

The principle that potential return on investment increases with the amount of risk undertaken in the investment.

Expected Returns

A projection of the amount of profit or loss an investment is likely to generate, factoring in various probabilities.

Higher-Risk Assets

Refers to investments that carry a greater possibility of losing value but offer a higher potential for financial rewards compared to lower-risk assets.

Derivative Security

A financial security whose value is derived from the value of an underlying asset, such as stocks, bonds, commodities, or currencies.