Which of the Following Is Considered to Be an Advantage

question 15

Multiple Choice

Which of the following is considered to be an advantage of using both nonfinancial and financial information in the balanced scorecard?

• A)Nonfinancial information is most helpful in analyzing a company's past performance, while financial information is most useful in evaluating potential future performance.
• B)Nonfinancial information provides the short-term perspective while financial information provides the long-term perspective of performance.
• C)Nonfinancial information reflects the company's current and potential competitive advantage, while financial information tends to focus on a firm's achieved financial performance.
• D)Nonfinancial information should be included with financial information because it is more reliable than financial information.

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Definitions:

Obligation

A duty or responsibility to act or perform in a certain way, often legally binding, resulting from a contract, law, or moral responsibility.

Shareholders

Individuals or entities that own shares in a corporation, giving them rights to dividends and a say in company matters, typically through voting.

Liquidation

The process of bringing a business to an end and distributing its assets to claimants, often due to insolvency.

New Share Issues

The process by which a company issues additional shares to new or existing shareholders, often to raise capital for expansion.