Which of the Following Statements About the Balanced Scorecard Approach

question 99

Multiple Choice

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

• A) It requires managers to focus on financial measures more than nonfinancial measures.
• B) It looks at performance from the following perspectives: financial, customer, internal business, and learning and growth.
• C) It helps balance short-term operating performance with long-term strategies.
• D) It recognizes that traditional measures of performance are often not adequate to fully assess a company's performance.

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Definitions:

Par Value

The face value of a bond or stock, as designated by the issuing company, which may not reflect the market value.

Premium

An amount paid for an insurance policy, or the cost above the nominal or face value of a financial instrument.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which is the value written on the face of the security.

Interest Rate Risk

The risk that an investment's value will change due to a change in the absolute level of interest rates.