A Local Area Consulting Firm Is Trying to Increase the Long-Term

question 74

Multiple Choice

A local area consulting firm is trying to increase the long-term strategic focus of its company reports.Therefore, the firm has decided to use the balanced scorecard.What type of new information, that the company currently doesn't use in its financial reports, should the company include?

• A)Non-financial information, including customer satisfaction, innovation, etc.
• B)Additional financial information, such as profitability measures and market value.
• C)Product life cycle information.
• D)Supplemental accounting reports
• E)Continuous improvement

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Definitions:

Capital Contributions

Monetary or non-monetary assets provided by partners or shareholders to increase the capital of a partnership or corporation.

LLC

A limited liability company, which is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Distribution of Profits

The allocation of a company's earnings to its shareholders or owners, typically in the form of dividends.

Dissolution

The official termination of an entity's existence, such as a corporation or partnership, through legal processes.