Why Is the Balanced Scorecard Method Said to Be "Balanced

question 15

Multiple Choice

Why is the balanced scorecard method said to be "balanced"?

• A) It uses measurable dimensions for assessing performance.
• B) It assesses both the internally focused and externally focused business processes.
• C) It measures performance along all major divisions of a firm, from production and manufacturing to human resources.
• D) It measures performance of all levels of a firm, from executives to operational employees and data workers.
• E) It measures performance of more than just financial systems.

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Definitions:

Cost of Capital

The rate of return that a company must earn on its projects to maintain its market value and attract funds.

Market Risk Premium

The supplementary income an investor aims to gain by investing in a market portfolio with risk rather than in secure, risk-free assets.

Beta

A measure of a stock's volatility in relation to the overall market, indicating how much a stock’s price might fluctuate.

Dividend Growth Rate

The dividend growth rate is the annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time.