Many Companies Use a Balanced Scorecard for Performance Evaluation

question 96

Multiple Choice

Many companies use a balanced scorecard for performance evaluation. The balanced scorecard has four business perspectives, and utilizes KPIs to evaluate performance in various areas. Which of the following KPIs would relate to the financial perspective?

• A) Hours of employee training
• B) Number of warranty claims
• C) Percentage of market share
• D) Return on investment

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Definitions:

Quantity of Loanable Funds

The total amount of funds available for borrowing in the financial market, determined by the supply of savings and the demand for investments.

Horizontal Axis

The x-axis in a graph, typically representing the independent variable in data presentations and analyses.

Government Budget

An estimate of income and expenditure for a set period of time, outlining the financial plans and priorities of a government.

Nominal Interest Rate

indicates the percentage increase in money that the borrower pays the lender, not taking into account the eroding effects of inflation on the real value of the money.