Which of the following is the best example of a well-stated financial objective?
A) Increase earnings per share by 15 percent annually.
B) Gradually boost market share from 10 percent to 15 percent over the next several years.
C) Achieve lower costs than any other industry competitor.
D) Boost revenues by a percentage margin greater than the industry average.
E) Maximize total company profits and return on investment.

Question

Quizplus · Accepted Answer

This objective is specific, measurable, achievable, relevant, and time-bound (SMART). It specifies a clear financial goal to increase earnings per share by 15 percent annually.

Note: The other options are not well-stated financial objectives because they lack specificity, measurability, or a clear target. For example, option B only provides a vague goal of gradually boosting market share without specifying a timeframe, and option E is too general and vague to be a specific financial objective.

Which of the Following Is the Best Example of a Well-Stated