Non-Financial Performance Models

What is the balanced scorecard?

• A concept that measures the extent to which the business is socially responsible

• A model that encourages the assessment of overall business performance based on three important areas

• A financial statement that measures the impact of business activity on the environment

• A system that enables an organization to set, track, and achieve their key business strategies and objectives

What are the four legs of the balanced scorecard?

• Customer satisfaction, financial requirement, critical process, and employee education

• Income statement, environmental impact, social responsibility, and corporate reporting

• Customer, financial, internal business process, and knowledge education and growth

• Profit, people, planet, and performance

What is the triple bottom line model?

• A concept that measures the extent to which the business is socially responsible

• A financial statement that identifies the profit from the income statement

• A system that measures the impact of business activity on the environment

• An influential model that encourages the assessment of overall business performance based on people, planet, and profit

What does the triple bottom line measure?

• People, planet, and profit

• Employee education, corporate reporting, and financial performance

• Income statement, environmental impact, and social responsibility

• Customer satisfaction, financial requirement, and critical process

What is an advantage of the balanced scorecard?

• It encourages the assessment of overall business performance based on people, planet, and profit

• It identifies the profit from the income statement

• It provides a broader view of business performance

• It measures the impact of business activity on the environment

What is a disadvantage of the balanced scorecard?

• It identifies the profit from the income statement

• It encourages the assessment of overall business performance based on people, planet, and profit

• It measures the impact of business activity on the environment

• Senior management may be too concerned with financial performance

What is a benefit of the triple bottom line model?

• It encourages the business to think beyond narrow measures of performance

• It provides a broader view of business performance

• It identifies the profit from the income statement

• It measures the impact of business activity on the environment

What is a criticism of the triple bottom line model?

• It's not very useful as an overall measure of business performance

• It measures the impact of business activity on the environment

• It encourages the assessment of overall business performance based on people, planet, and profit

• It identifies the profit from the income statement

What does the people aspect of the triple bottom line measure?

• The customer satisfaction and performance requirements

• The extent to which the business is socially responsible

• The impact of business activity on the environment

• The profit from the income statement

What does the planet aspect of the triple bottom line measure?

• The profit from the income statement

• The extent to which the business is socially responsible

• The customer satisfaction and performance requirements

• The impact of business activity on the environment