Which of the Following Is Not a Reason Companies Use

question 2

Multiple Choice

Which of the following is not a reason companies use key performance indicators?

• A)To align business activity with corporate strategy
• B)To improve company performance
• C)To improve timeliness of business decisions
• D)All of these answer choices are reasons companies use key performance indicators.

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Definitions:

Market Price

The prevailing market price at which you can buy or sell an asset or service.

Cumulative Preferred Stock

A type of preferred stock that entitles shareholders to receive dividends in arrears before common stockholders can be paid dividends.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the corporation's profits or losses.

Dividends Per Share

Dividends per share is a measure reflecting the amount of declared dividends for each share of common stock, revealing how much a company pays out in dividends relative to its share price.