A balanced scorecard for measuring company performance
A)entails putting equal emphasis on financial and strategic objectives.
B)entails striking a balance between financial objectives and strategic objectives.
C)balances the drive for profits with social responsibility obligations.
D)prevents the drive for achieving strategic objectives from overwhelming the pursuit of financial objectives.
E)entails creating a set of financial objectives balanced among profitability measures and liquidity measures.

Question

Quizplus · Accepted Answer

A balanced scorecard aims to strike a balance between financial objectives (such as profitability and liquidity) and strategic objectives (such as customer satisfaction, innovation, and employee morale). This helps companies avoid focusing too much on short-term financial results at the expense of long-term success, and ensures that all aspects of the business are being monitored and improved. Option B accurately reflects this balancing act, while options A, C, D, and E either only address one of the two types of objectives or misinterpret the purpose of a balanced scorecard.

A Balanced Scorecard for Measuring Company Performance