Which of the Following Is True

question 65

Multiple Choice

Which of the following is true?

• A)The theory of the Balanced Scorecard model of performance is leadership drives the operating system that creates business results.
• B)The Service-Profit Chain focuses on learning, internal business, customers, and financial performance.
• C)Volume flexibility allows the firm to change their learning behavior of employees as conditions change.
• D)In the BankUSA: Credit Card Division case study internal and external performance was negatively correlated.

Understand the implications of economizing behavior and marginal changes.

Recognize the value of information in making economic decisions.

Analyze the effects of policies and costs on economic decisions.

Understand the concept of marginal benefits and marginal costs in decision-making.

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Definitions:

Equity Multiplier

A financial ratio that measures a company's total assets financed by its shareholders' equity, used to evaluate financial leverage.

Net Profit Margin

A profitability ratio calculated as net income divided by revenue, indicating how much profit a company makes with its total sales.

Gross Margin

The difference between revenue and cost of goods sold divided by revenue, expressed as a percentage.

Times Interest Earned

A ratio that measures a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes by the interest expense.