The First Step in Implementing a Balanced Scorecard Is Developing

question 16

True/False

The first step in implementing a balanced scorecard is developing measures for each of the perspectives.

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Definitions:

Compound Value

The future value of an investment, including the principal and the compounded interest over time.

Discount Rate

The interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window. Alternatively, it can represent the rate used to discount future cash flows in present value calculations.

Present Value

The today's worth of future money or cash flow sequences, when a certain rate of return is applied.

Discount Rate

In finance, the discount rate is the interest rate used to determine the present value of future cash flows.