Final answer:
To be effective, balanced scorecards must be customized by companies to fit different market situations, products, and competitive environments.
Step-by-step explanation:
The statement 'To be effective, balanced scorecards must be customized by companies to fit different market situations, products, and competitive environments' is true.
A balanced scorecard is a strategic performance measurement tool that helps organizations track and manage their performance across multiple areas. It includes different perspectives such as financial, customer, internal processes, and learning and growth.
Since companies operate in diverse market situations, offer different products, and face varying competitive environments, it is essential to customize the balanced scorecard to align with their specific goals and challenges. This customization ensures that the metrics and targets set in the scorecard are relevant and meaningful for driving performance improvement in a particular company.