The balanced scorecard provides top managers with a __________ view of the business.

81.	Ratios that reflect whether or not a firm is efficiently using its resources are known as    A.  leverage ratios B.  turnover ratios C.  liquidity ratios D.  profitability ratios Asset utilization (or turnover) ratios are one measure of whether a firm is efficiently using its resources.

AACSB: Analytic Blooms: Remember Learning Objective: 03-06 The usefulness of financial ratio analysis; its inherent limitations; and how to make meaningful comparisons of performance across firms. Level of Difficulty: 1 Easy Topic: Evaluating Firm Performance: Two Approaches

82.

The balanced scorecard provides top managers with a __________ view of the business.    A.  detailed and complex B.  simple and routine C.  fast but comprehensive D.  long-term financial A balanced scorecard provides top managers with a fast but comprehensive view of the business. In a nutshell, it includes financial measures that reflect the results of actions already taken, but it complements these indicators with measures of customer satisfaction, internal processes, and the innovation and improvement activities of the organization.

AACSB: Analytic Blooms: Remember Learning Objective: 03-07 The value of the "balanced scorecard" in recognizing how the interests of a variety of stakeholders can be interrelated. Level of Difficulty: 1 Easy Topic: Evaluating Firm Performance: Two Approaches

83.

The balanced scorecard, developed by Kaplan and Norton, helps to integrate ______.    A.  financial analysis and the reputation of a firm B.  intangible resources and operational measures C.  financial analysis and stakeholder perspectives D.  short-term perspectives and strategic positioning The balanced scorecard enables managers to consider their business from four key perspectives: customer, internal, innovation and learning, and financial.

AACSB: Analytic Blooms: Remember Learning Objective: 03-07 The value of the "balanced scorecard" in recognizing how the interests of a variety of stakeholders can be interrelated. Level of Difficulty: 1 Easy Topic: Evaluating Firm Performance: Two Approaches

84.

The balanced scorecard enables managers to consider their business from all of the following perspectives EXCEPT:    A.  customer perspective B.  internal perspective C.  innovation and learning perspective D.  ethical perspective The balanced scorecard enables managers to consider their business from four key perspectives: customer, internal, innovation and learning, and financial.

AACSB: Analytic Blooms: Remember Learning Objective: 03-07 The value of the "balanced scorecard" in recognizing how the interests of a variety of stakeholders can be interrelated. Level of Difficulty: 1 Easy Topic: Evaluating Firm Performance: Two Approaches

85.

An important implication of the balanced scorecard approach is that _______________.    A.  managers need to recognize that satisfaction of stockholder demands is their primary job B.  the key emphasis on customer satisfaction and financial goals are only a means to that end C.  managers should not look at their job as primarily balancing stakeholder demands D.  gains in financial performance and customer satisfaction must come at a cost of employee satisfaction A key implication is that managers do not need to look at their job as balancing stakeholder demands. The balanced scorecard provides a win-win approach, increasing satisfaction among a wide variety of organizational stakeholders, including employees (at all levels), customers, and stockholders.

AACSB: Analytic Blooms: Understand Learning Objective: 03-07 The value of the "balanced scorecard" in recognizing how the interests of a variety of stakeholders can be interrelated. Level of Difficulty: 2 Medium Topic: Evaluating Firm Performance: Two Approaches