A Balanced Scorecard Becomes a Means of Communicating the Strategy

question 93

Multiple Choice

A Balanced Scorecard becomes a means of communicating the strategy of an organization to its employees and managers. Which of the following is a downside of communicating this information?

• A)The expanded set of metrics for performance evaluation will not be followed.
• B)The alignment of performance measures to the objectives of an organization gets neglected.
• C)Sensitive information may end up in the hands of competitors.
• D)The reward system gets tied just to traditional financial measures.

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Definitions:

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business over a specific period of time.

Internal Control Procedures

These are policies and procedures put in place by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Cash Short and Over

An account that stores any discrepancies between the expected cash count and the actual amount of cash present, reflecting errors or theft.

Other Income

Revenue generated from activities that are not part of a company's primary business operations, including interest, dividends, and gains from asset sales.