A Company Can Use Traditional Financial Measures Such as Return

question 59

True/False

A company can use traditional financial measures such as return on investment to measure supply chain performance.

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Definitions:

Financial Planning

The process of estimating the capital required and determining its competition; it is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.

Fixed Percentage

A predetermined, unchanging fraction or rate used in various financial contexts, such as a fixed-rate mortgage.

External Financing

Funds a company seeks from outside sources, such as loans, investor equity, or bonds, to finance its activities.

Internal Growth Rate

The maximum rate at which a company can expand its operations using only internally generated revenue and without resorting to external financing.