Which of the Following Is a Fifth Perspective That Some

question 9

Multiple Choice

Which of the following is a fifth perspective that some organizations add to the balanced scorecard?

• A)An additional area that the company expects to expand into at a later date.
• B)An additional area that highlights an areas of strategic importance.
• C)An additional area in which the company has found problems.
• D)None of these answer choices are correct,a fifth perspective should not be added.

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Definitions:

Discount

The reduction in the price of goods or services, usually offered to prompt sales or because the product is damaged, outdated, or in less demand.

Restricted Policy

A policy under which holdings of cash, securities, inventories, and receivables are minimized.

Relaxed Policy

A policy under which relatively large amounts of cash, marketable securities, and inventories are carried and under which sales are stimulated by a liberal credit policy, resulting in a high level of receivables.

Interest Expense

Interest Expense is the cost incurred by an entity for borrowed funds, often reflected in the income statement as a cost of financing activities.