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

Question

Quizplus · Accepted Answer

The financial objective stated in option A is specific, measurable, achievable, relevant, and time-bound (SMART). It clearly defines the percentage increase in earnings per share annually.

Answer: E
 The financial objective stated in option E is broad but encompasses the overall objective of any business - to maximize profits and return on investment.

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