Why is relying only on financial performance a poor measure of venture success?

Question

Quizplus · Accepted Answer

Financial performance can be affected by external factors such as market fluctuations, economic conditions, and other unforeseen events. Therefore, relying solely on financial measures to evaluate venture success may not give a complete picture of the company's overall performance or its potential for future growth. Additionally, some ventures may prioritize long-term growth over short-term profitability, making financial metrics such as profits or revenue less relevant to measure success. Instead, other factors such as customer satisfaction, innovation, and social responsibility may be more important indicators of a venture's success.

Why Is Relying Only on Financial Performance a Poor Measure