Question

The financial performance of a firm _____________ Select one:

A. is not likely to be reported accurately in its financial statements, as can be seen with Enron and WorldCom, so it is of little use when assessing a strategy.
B. is more easily deduced by outsiders when the firm is privately held rather than publicly traded.
C. should be used along with other measures, including some that are qualitative, to assess a strategy.
D. should be the only consideration when assessing a strategy.

Answer 1

The answer is: C) Should be used along with other measures, including some that are qualitative, to assess a strategy.

Step-by-step explanation:

A business strategy has to based on both qualitative and quantitative measures.

• Qualitative measures use parameters such as consumer satisfaction, brand image, corporate identity, etc. How is our company making our community better?
• Quantitative measures use parameters such as turnover, sales, profit, etc. What % of sales increase do we expect for next year?

A successful business strategy has to consider both aspects of the organization. For instance, how can we expect to have a sales increase of 10% next year when our customers have a terrible image of our company? One doesn´t work without the other, they both need each other to work properly.