The Performance Measures on a Balanced Scorecard Tend to Fall

question 37

True/False

The performance measures on a balanced scorecard tend to fall into four groups: financial measures,customer measures,internal business process measures,and external business process measures.

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Definitions:

Net Cash

The amount of cash available after deducting liabilities, often considered in evaluating a company's liquidity.

Equity

represents ownership interest in a company or property, often manifested as stock or shares, indicating a stake in the company's assets and profits.

Credit Purchases

Transactions where goods or services are bought using credit rather than paying with cash or check at the time of purchase.

Compound Leverage Ratio

The measure of the level of leverage in a company's capital structure, combining both debt and equity, and its potential effects on the company's returns.