What is a balanced scorecard?
A) A combination of performance measures directed toward the company's long- and short-term goals and used as the basis for awarding incentive pay
B) A performance review process where the organization collects feedback from customers, managers, and subordinates, assigns ratings, and lists them on the company's performance card
C) An arrangement in which the organization distributes shares of stock to all its employees by placing the stock into a trust
D) An incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary
E) It is a system designed to measure the performance of HR personnel based on the quality of recruitment

Question

Quizplus · Accepted Answer

When executives are stockholders, they have a dual role as owners and managers. This places them at an advantage over others who want to invest in the company. An individual, a pension fund, or other investors have less information about the company than its managers do.An executive who knows about these activities could therefore reap a windfall in the stock market by buying or selling stock based on knowledge about the company's future.

What Is a Balanced Scorecard