Which of the Following Is Not an Advantage of the Balanced-Scorecard

question 6

Multiple Choice

Which of the following is not an advantage of the balanced-scorecard approach to assess firm performance?

• A) It allows managers to communicate and link the strategic vision to responsible parties within an organization.
• B) It helps managers to implement feedback and organizational learning in order to modify and adapt strategic goals when indicated.
• C) It provides a concise report that tracks chosen metrics and measures and compares them to target values.
• D) It is a tool which can be effectively used by managers for both strategic implementation and strategic formulation.

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Definitions:

Indirect Method

A way of calculating cash flows from operating activities for the cash flow statement by adjusting net income for changes in non-cash items.

Quality

The degree of excellence of a product or service, or its conformity to established standards or specifications.

Income Ratio

A financial metric used to gauge a company's profitability by comparing its income to other relevant figures, such as sales or assets.

Business Operations

The day-to-day activities involved in running a business, which include producing goods, providing services, and selling to customers.