The balanced scorecard is a useful tool for setting and monitoring performance targets for firms that pursue stakeholder goals;it is less useful for firms that seek to maximize profits over the long term.

Question

Quizplus · Accepted Answer

The statement is incorrect. The balanced scorecard can be used by any firm, regardless of its primary goal. It provides a comprehensive framework for tracking performance in multiple areas, including financials, customer satisfaction, internal processes, and employee learning and growth. While maximizing profits may be the primary objective of some firms, performance in the other areas can also have an impact on long-term success and sustainability. Therefore, the balanced scorecard can be a useful tool for all types of organizations.

The Balanced Scorecard Is a Useful Tool for Setting and Monitoring