In an Effective Balanced Scorecard, ________

question 113

Multiple Choice

In an effective balanced scorecard, ________.

• A) net income serves as the best indicator for the hard-to measure long-run operational performance
• B) the sales budget serves as one of the leading indicator for the hard-to measure short-run financial performance
• C) the sales budget serves as a leading indicator for the hard-to measure short-run nonfinancial performance
• D) customer satisfaction serves as one of the leading indicator for the hard-to measure long-run financial performance such as the likelihood of higher sales and income

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Definitions:

Strike Price

The predetermined price at which an option's holder has the right to purchase (for a call option) or sell (for a put option) the underlying asset.

Option

An option is a financial derivative that gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified timeframe.

European Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a certain asset at a specified price (strike price) on a specified date.