The Balanced Scorecard Approach

question 143

Multiple Choice

The balanced scorecard approach

• A) uses only financial measures to evaluate performance.
• B) uses rather vague open statements when setting objectives in order to allow managers and employees flexibility.
• C) normally sets the financial objectives first and then sets the objectives in the other perspectives to accomplish the financial objectives.
• D) evaluates performance using about 10 different perspectives in order to effectively incorporate all areas of the organization.

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Definitions:

Full Employment GDP

The maximum output that an economy can produce without causing inflation, when all available resources are utilized efficiently.

Keynes

From the UK, this economist's theories ushered in a new era for macroeconomic practice and governmental economic policy-making.

The Classicals

Economists from the 18th and 19th centuries who laid the foundations of classical economics, focusing on free markets and self-regulating economies.

Say's Law

An economic theory that proposes that supply creates its own demand, suggesting that production is the source of demand and that markets naturally balance over time.