The Following Statements Are True Regarding the Customer Perspective in the Balanced

question 60

Multiple Choice

The following statements are true regarding the customer perspective in the Balanced Scorecard EXCEPT:

• A)Customer satisfaction leads to customer retention
• B)A customer target might be to reduce cash expenses by 3%.
• C)Customer retention generally leads to increased customer profitability
• D)Success in the customer perspective should lead to improvement in the financial perspective.

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Definitions:

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, crucial in evaluating investment opportunities.

Compound Interest

This is when interest is earned on the principal amount as well as on the interest that has accumulated in earlier periods.

Earnings Rate

The rate at which a company or an investment grows its profit over a specific period, usually expressed as a percentage.

Net Present Value

Net Present Value (NPV) is a financial metric that calculates the value of a series of cash flows over time, discounted back to their present value to assess an investment's profitability.