An Article on Public Libraries Contained the Following Statement: "The

question 124

Multiple Choice

An article on public libraries contained the following statement: "The balanced scorecard helps organize and run the library according to a specific strategic plan,while demonstrating the library's value to the community as a whole." When dealing with the customer area of the balanced scorecard,the article advised librarians to use customer surveys. Why might surveys be a poor strategy to use?

• A)The use of surveys could create information overload. 
• B)Customer surveys are never reliable. 
• C)Stakeholders should not be involved in the creation of a balanced scorecard. 
• D)Customer surveys are typically misleadingly positive.

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Definitions:

Negative NPV

A situation where the net present value (NPV) of a project or investment is less than zero, indicating that the projected cash flows are insufficient to cover the initial investment.

Discounted Payback Period

The discounted payback period is the time it takes for an investment to generate cash flows sufficient to recover its initial cost, taking the time value of money into account.

Discounted Cash Flows

A valuation method used to estimate the value of an investment based on its future cash flows, adjusted for the time value of money.

Average Accounting Return

A financial ratio that represents the average annual income as a percentage of the initial investment, used in capital budgeting to estimate the profitability of potential investments.