Which of the following statements is true of a balanced scorecard?
A) The balanced scorecard reduces managers' emphasis on long-run financial performance.
B) The balanced scorecard reduces managers' emphasis on short-run financial performance.
C) The primary goal of using the balanced scorecard is to sustain short-run financial performance.
D) The primary goal of using the balanced scorecard is to sustain short-run nonfinancial performance.

Question

Quizplus · Accepted Answer

The purpose of a balanced scorecard is to provide a comprehensive view of an organization's performance, including both financial and nonfinancial measures. It does not aim to reduce emphasis on financial performance, but rather to balance it with other important factors such as customer satisfaction, internal processes, and employee development. The balanced scorecard can help managers focus on long-term success rather than short-term financial gains. Therefore, option B is the correct choice.

Which of the Following Statements Is True of a Balanced