Question 1

Shareholders of a business can be which of the following? Please select all that apply.

Accepted Answer

The answer of Shareholders of a business can be which...

Question 2

Milton Friedman, the famous economist is of the view that 'business is society'.

Accepted Answer

Milton Friedman is known for his view that the primary responsibility of business is to its shareholders, not that "business is society." He argued that businesses should focus on generating profit within the bounds of the law and ethical custom, rather than taking on societal responsibilities.

Question 3

The government wants to close down the Child Support Agency. If it did a stakeholder mapping exercise in relation to this proposal, where are journalists likely to be mapped on Mendelow's power/interest matrix?

Accepted Answer

The answer of The government wants to close down the...

Question 4

Which two countries are most likely to give prominence to shareholders in their corporate governance framework?

Accepted Answer

The UK and USA are known for giving prominence to shareholders in their corporate governance framework. For example, in the UK, the Companies Act 2006 gives shareholders the power to approve certain transactions and to vote on major decisions such as the appointment of directors. In the USA, the Securities and Exchange Commission requires companies to disclose information to shareholders and provides them with a range of rights including the ability to vote on matters such as the election of directors and executive pay.

Question 5

The weaknesses that the balanced scorecard is supposed to address in relation to performance measurement are: Please select all that apply.

Accepted Answer

The balanced scorecard addresses the weaknesses of using only traditional financial measures as they do not provide a comprehensive view of performance, nor do they indicate future performance. The balanced scorecard also addresses the weakness of strategic goals not being translated into specific measures that can guide employees. The option D is incorrect as it is not a weakness that the balanced scorecard is designed to address - it is an issue of communication and management effectiveness.

Question 6

Which of the following sets of factors form part of the balanced scorecard framework for measuring performance? Please select all that apply.

Accepted Answer

The balanced scorecard framework consists of four perspectives, including the Innovation and Learning perspective, the customer perspective, and the internal perspective. The growth perspective is not a part of the balanced scorecard framework.

Question 7

Kaplan and Norton suggest that 20-30 measures are appropriate for the balanced scorecard approach.

Accepted Answer

Kaplan and Norton recommend using 20-30 measures in the balanced scorecard approach to maintain focus and ensure that the most critical areas are being addressed.

Question 8

The overall purpose of the balanced scorecard approach is to:

Accepted Answer

The balanced scorecard approach is designed to help organizations translate their strategies into actionable items by setting measurable goals, tracking progress, and providing feedback. While measuring financial performance and product quality may be part of the scorecard, the overall purpose is to align strategic objectives with operational performance measures. Benchmarking against competitors is not the primary focus of the balanced scorecard approach.

Question 9

The Balanced Scorecard approach has been criticized for leaving out certain measures. One of these is:

Accepted Answer

The Balanced Scorecard approach has been criticized for not including measures of employee satisfaction, which are crucial for assessing the internal health and potential of an organization.

Question 10

Benchmarking is a popular tool to measure performance. Benchmarking involves the continual process of comparing organizational performance against:

Accepted Answer

Benchmarking involves comparing an organization's performance against high achieving organizations to identify best practices and areas for improvement.

Quiz 4: The Organisation: Value-Creating Activities