A Balanced Scorecard That Includes Both Strategic and Financial Performance

question 6

Multiple Choice

A balanced scorecard that includes both strategic and financial performance targets is a conceptually strong approach for judging a company's overall performance because

• A)financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities,whereas strategic performance measures are leading indicators of a company's future financial performance.
• B)it entails putting equal emphasis on good strategy execution and good business model execution.
• C)a balanced scorecard approach pushes managers to avoid setting objectives that reflect the results of past decisions and organizational activities,and,instead,to set objectives that will serve as leading indicators of a company's future financial performance.
• D)it assists managers in putting roughly equal emphasis on short-term and long-term performance targets.
• E)it more or less forces managers to put equal emphasis on financial and strategic objectives.

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Definitions:

Major Perspectives

Encompass the various overarching theories or viewpoints in psychology that guide understanding of human behavior and mind, such as psychodynamic, behavioral, cognitive, humanistic, and biological perspectives.

Personality

A compilation of traits that together form an individual's distinctive personality.

Everyday Life

The domain of daily existence, including routine activities, tasks, interactions, and experiences that define the normalcy of an individual's life.

External Attribution

The process of inferring that a person's behavior is due to situational factors, rather than aspects of the person themselves.