NFPM

In the context of VUCA (Volatility, Uncertainty, Complexity, Ambiguity), which of the following best describes the strategic value of NFPM?

• Reinforces rigid budget control structures

• Allows real-time adaptive decision-making based on broader organizational signals

• Improves quarterly earnings predictability

• Minimizes external stakeholder involvement in planning

Which factor most undermines the effectiveness of NFPM in organizational decision-making?

• Its ability to directly increase shareholder returns in the short term

• Its lack of regulatory standardization, making benchmarking and comparison difficult

• Its alignment with ESG priorities and long-term strategic focus

• Its contribution to enhancing innovation and internal culture metrics

Which of the following best illustrates how NFPM supports strategic agility in a knowledge-based economy?

• Enhancing fixed asset utilization

• Encouraging KPI silos to deepen focus

• Capturing real-time learning, collaboration, and innovation metrics

• Reducing marketing budget variance

Which of the following is a key limitation of relying solely on NFPM in public sector or educational institutions?

• NFPM are too easy to quantify

• They lack stakeholder relevance

• Subjectivity and lack of standard benchmarks may affect comparability

• They ignore human elements of performance

Considering both pros and cons from the presentation, which industry would likely benefit MOST from NFPM?

• A stable utilities provider with regulated profits

• A rapidly evolving fintech startup

• A cash-only small retail business

• A government-run monopoly

A retail company experiences high employee turnover despite strong financial results. Which performance measurement strategy would best address this imbalance?

• Reinforcing cost control and ROI metrics

• Adopting a Balanced Scorecard approach with workforce engagement KPIs

• Increasing advertising to drive short-term sales

• Focusing on financial liquidity ratios in monthly reports

A technology firm implements a new AI-driven system to track customer feedback, innovation output, and employee engagement. Which justification best supports this decision from a strategic management perspective?

• To reduce administrative expenses

• To enhance backward-looking reporting for auditors

• To improve intangible asset management aligned with future value creation

• To increase the firm’s current earnings per share (EPS)

Which of the following is a benefit of combining financial (FPM) and non-financial (NFPM) performance measures?

• It eliminates the need for long-term strategic planning.

• It provides a more balanced and comprehensive view of organizational performance.

• It reduces the focus on customer satisfaction.

• It simplifies compliance costs.

In a fast-changing digital market, why might a firm prioritize non-financial indicators over traditional financial ones?

• Because non-financial data is easier to audit

• To delay reporting sensitive earnings data

• Because future competitiveness relies on agility, innovation, and employee capabilities

• To ensure compliance with IFRS standards