The Industry Leader
Frank, the new Managing Director for Cooper-Smith Real Estate, is working hard to turn around the formerly successful real estate business.His goal is to once again make Cooper-Smith a leader in the industry.Frank is currently at a meeting with senior staff and is informing them about measuring the company's performance.
-Refer to The Industry Leader (Scenario).Bob, one of the senior managers, was confused as to why measuring organisational performance was important, as sales were increasing.Frank replied that it is important to measure and control organisational performance because it leads to all of the following EXCEPT ________.
A)a higher debt/equity ratio
B)improved measures of organisational knowledge
C)a positive impact on organisational reputation
D)better asset management
E)increased ability to capture customer value

Question

Quizplus · Accepted Answer

Measuring and controlling organizational performance typically leads to improved measures of organizational knowledge, better asset management, a positive impact on organizational reputation, and increased ability to capture customer value. However, it would not lead to a higher debt/equity ratio. In fact, better performance would likely result in a lower debt/equity ratio as the business is more profitable and financially stable.

The Industry Leader Frank, the New Managing Director for Cooper-Smith Real Estate, Is