The Customer Perspective of the Balanced Scorecard Approach

question 115

Multiple Choice

The customer perspective of the balanced scorecard approach

• A) is the most traditional view of the company.
• B) evaluates the internal operating processes critical to the success of the organization.
• C) evaluates how well the company develops and retains its employees.
• D) evaluates the company from the viewpoint of those people who buy its products or services.

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Definitions:

Behavioral Economics

The study of psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions and how those decisions vary from those implied by classical theory.

Basic Economic Theory

Refers to the foundational concepts and principles that explain how individuals, firms, and governments make decisions on allocating scarce resources to satisfy unlimited wants.

Rational Consumers

Consumers who make choices to maximize their utility, based on preferences, budget constraints, and available information.

Budget Constraint

An economic model that represents all the combinations of goods and services that a consumer can afford to purchase at given prices within their income level.