Quiz 5

Question 1

The learning and growth perspective of the balanced scorecard evaluates the profitability of the
strategy

Answer 1

F

Question 2

Employee satisfaction is a measure of the internal business perspective of the balanced
scorecard

Answer 2

F

Question 3

The customer perspective under the balanced scorecard approach would include measures on
cost reduction

Answer 3

F

Question 4

When implementing a balanced scorecard, the cause-and-effect linkages are always precise.

Answer 4

F

Question 5

When evaluating managers and employees under the balanced scorecard approach, only financial measures should be considered

Answer 5

F

Question 6

An increase of operating income from one year to the next indicates a company’s strategy was successful.

Answer 6

F

Question 7

The number of complaints about a product is an example of a balanced-scorecard measure of the Learning and Growth perspective.

Answer 7

F

Question 8

The FIRST step to successful balanced scorecard implementation is clarifying the
organization’s vision and strategy

Answer 8

T

Question 9

A sustainability-balanced scorecard includes the usual four perspectives – financial, stakeholder,
internal business process, and learning and growth – and introduces a fifth perspective,
sustainability, which is linked to the other four perspectives.

Answer 9

F

Question 10

The purpose of the balanced scorecard is BEST described as helping an organization to translate
its mission and strategy into a set of performance measures that help to implement the strategy.

Answer 10

T

Question 11

The balanced scorecard is said to be “balanced” because it measures:

a. short-term and long-term objectives
b. financial and nonfinancial objectives
c. internal and external objectives
d. All of these answers are correc

Answer 11

D

Question 12

The internal business processes perspective of the balanced scorecard comprises three subprocesses that address all of the following EXCEPT:

a. innovative processes used to create new products, services, and processes
b. motivating current employees
c. providing service and support to the customer after the sale
d. delivering existing products and services to best meet the needs of customers

Answer 12

B

Question 13

Identify the BEST description of the balanced scorecard’s financial perspective. To achieve our
firm’s vision and strategy, how

a. can we obtain greater profits for the current year?
b. can we increase shareholder value?
c. will we obtain continuous improvements?
d. can we secure greater customer satisfaction?

Answer 13

B

Question 14

Identify the BEST description of the balanced scorecard’s internal business processes perspective. To achieve our firm’s vision and strategy,

a. how do we lower costs?
b. how do we motivate employees?
c. how can we obtain greater profits?
d. what processes will increase value to customers?

Answer 14

D

Question 15

All of the following relate to the balanced scorecard’s learning and growth perspective EXCEPT:

a. How do we achieve greater employee satisfaction?
b. What new products do we create?
c. How do we provide information systems with updated technology?
d. How will we motivate and empower our employees?

Answer 15

B

Question 16

Measures of the balanced scorecard’s customer perspective include:

a. market share
b. number of on-time deliveries
c. number of process improvements
d. revenue growth

Answer 16

A

Question 17

Which of the following is NOT true of a good balanced scorecard?

a. It tells the story of a company’s strategy by articulating a sequence of cause-and-effect
relationships.

b. It helps to communicate corporate strategy to all members of the organization.
c. It identifies all measures, whether significant or small, that help to implement strategy.

d. It uses nonfinancial measures to serve as leading indicators of future financial
performance.

Answer 17

C

Question 18

Why is the inclusion of ‘environmental performance’ likely to become more common in a firm’s balanced scorecard?

a. Balanced scorecard must include all stakeholder interests to be complete.
b. It is likely that investors will evaluate a firm’s environmental record as well as its financial record.
c. Balanced scorecard acknowledges that it is no longer adequate to focus on the major stakeholder (the firm’s owner(s)).

d. Balanced scorecard acknowledges that numerous stakeholders are important for business
success.

Answer 18

B

Question 19

On which of the following does a balanced scorecard approach focus on?

a. Strategic objectives
b. Critical success factors
c. Performance measures at all levels of the business
d. All of the given answers

Answer 19

D

Question 20

Surveys of employee satisfaction is an example of a balanced-scorecard measure of the:

a. internal business process perspective
b. customer perspective
c. learning and growth perspective
d. financial perspective

Answer 20

C