Four Perspectives Are Integrated to Form the Balanced Scorecard Framework

question 44

Multiple Choice

Four perspectives are integrated to form the balanced scorecard framework.The financial perspective focuses on the view of the firm by the:

• A) customer.
• B) employee.
• C) shareholder.
• D) general society.

Understand the focal points in the planning process, including mission statements and customer orientation.

Recognize the significance of competitive edge and differentiation strategies for business success.

Identify the characteristics of farsighted companies and the importance of strategic competition.

Understand synergy types and their impacts on business strategies and operations.

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Definitions:

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods.

Present Value Methods

Techniques used to determine the current worth of a future cash flow, stream of cash flows, or an investment, by discounting them at a specific rate.

Net Present Value

A financial metric that calculates the value of a project or investment in terms of its present value of net cash inflows minus the present value of its costs.

Cash Payback Period

The length of time it takes for an investment or project to generate enough cash flows to recover its initial cost.