Why Is Relying Only on Financial Performance a Poor Measure

question 4

Multiple Choice

Why is relying only on financial performance a poor measure of venture success?

• A)Values are very sensitive to the timing of assessment
• B)Corporate ventures do not need to make a profit
• C)Strategic factors are more important
• D)Growth is more important than profitability

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Definitions:

Phillips Curve

An economic theory suggesting an inverse relationship between the rate of unemployment and the rate of inflation in an economy.

Inflation

A continuous rise in the overall price level of goods and services within an economy over a period.

Unemployment

The condition in which a capable worker who is actively seeking employment is unable to find work.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in bank accounts.