Question

Which of the following is NOT an example of a financial performance goal?

1) Increase return on assets from 8 percent to 9 percent.
2) Increase asset turnover from 2.5 to 2.8.
3) Increase market share by 20 percent.
4) Increase space productivity by 5 percent.
5) Reduce financial leverage from 2.1 to 2.0.

Answer 1

Increasing market share by 20 percent(3) is not a financial performance goal as it relates to competitive positioning rather than direct measures of financial health or performance.

Step-by-step explanation:

Among the options provided,(3) increasing market share by 20 percent is NOT an example of a financial performance goal. Financial performance goals typically relate to profitability, efficiency, liquidity, and solvency measures. Examples of financial performance goals include targets like increasing return on assets, asset turnover, space productivity, or reducing financial leverage. In contrast, increasing market share pertains to competitive positioning and market strategy, which can indirectly influence financial performance but does not directly reflect the financial health or performance of a company.