Which of the Following Statements Describes Financial Measures as a Part

question 45

Multiple Choice

Which of the following statements describes financial measures as a part of the balanced scorecard?

• A)They relates to client attraction, satisfaction, and retention.
• B)They focus on innovation and proceeds with an understanding that strategies change over time.
• C)They relate to organizational efficiency.
• D)They focus on corporate social responsibility.
• E)They relate to organizational effectiveness and profits.

---

Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to reinvest in its core business or to pay debt.

Depreciation Expense

A method for allocating the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Flotation Costs

The costs incurred by a company when it issues new securities, including underwriting fees, legal fees, and registration fees.

Cost Of Capital

A company's calculation of the minimum return necessary to justify the cost of a capital project or investment.