The First Step in Implementing a Balanced Scorecard Is to Clarify

question 49

Multiple Choice

The first step in implementing a balanced scorecard is to clarify organizational vision, core competencies, and strategies. The vision:

• A)Provides an overall direction for the organization
• B)Is another name for the organization's strengths and weaknesses
• C)Provides an explicit plan for daily operations
• D)Should explicitly incorporate all core competencies

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Definitions:

Working Capital Decision

Decisions that relate to managing the short-term assets and liabilities of a company, crucial for maintaining its operations and liquidity.

Capital Budgeting

The process used by companies to evaluate and select long-term investments that are likely to help achieve their financial goals.

Investment

Designating financial means with the prospect of attaining profit or income.

Capital Intensity Ratio

A financial metric that compares a company's total assets to its sales revenue, used to evaluate how much capital is needed to generate sales.