Which of the Following Statements Regarding the Balanced Scorecard Approach

question 64

Multiple Choice

Which of the following statements regarding the balanced scorecard approach is false?

• A) Because of changing technology, global competition, and an increased awareness of the need to focus on customer needs, nonfinancial and qualitative performance measures have become an integral component of effective managerial decision making.
• B) The balance scorecard approach integrates both financial and nonfinancial performance measures.
• C) The balanced scorecard approach requires looking at performance from four different but related perspectives: financial, customer, internal business, and learning and growth.
• D) The balance scorecard approach is not as useful for performance measurement as traditional accounting measures.

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, making them the owners of the corporation to the extent of the shares they hold.

Sole Proprietorship

A business in which one person (sole proprietor) is in control of the management and profits.

Management

The process of planning, organizing, leading, and controlling resources to achieve organizational goals.

Profits

The financial gain realized when the revenue generated from business activities exceeds the expenses, taxes, and costs involved in maintaining the operation.