Perhaps the Most Reliable Way for a Company to Improve

question 41

Multiple Choice

Perhaps the most reliable way for a company to improve its financial performance over time is to

• A)put 100 percent emphasis on the achievement of its short-term and long-term financial objectives.
• B)recognize that the achievement of strategic objectives signals that the company is well positioned to sustain or improve its performance.
• C)substitute financial intent for strategic intent and judiciously concentrate on the mission of making a profit.
• D)not allocate any resources to the achievement of strategic objectives until it is very clear that the company can meet or beat its stretch financial performance targets.
• E)avoid use of the balanced-scorecard philosophy since achievement of financial performance targets is obviously more important than the achievement of strategic performance targets.

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Definitions:

Semi-annually

Occurring or calculated twice a year, typically in the context of interest payments or dividends.

Coupon Rate

The yearly interest rate a bond issuer pays to its holders, usually shown as a percent of the bond's nominal value.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which is not related to its market value.

Moody's

A credit rating agency that evaluates the creditworthiness of borrowers, ranging from governments to private enterprises, and assigns ratings that reflect the risk of default.