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Which of the following statements about a firm's evaluation system is NOT true?

A. It proceeds in a straight-line, step-by-step fashion.
B. It may treat the product and its marketing plan together or independently.
C. It typically involves assessing the firm's performance and progress.
D. It focuses solely on financial metrics and ignores non-financial aspects.

1 Answer

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Final answer:

Statement D, which claims that a firm's evaluation system focuses solely on financial metrics and ignores non-financial aspects, is NOT true. Evaluations take into account a variety of factors beyond just financial performance.

Step-by-step explanation:

In response to the question about which statement is NOT true regarding a firm's evaluation system, the answer is D. The statement 'It focuses solely on financial metrics and ignores non-financial aspects' is not accurate because firm evaluations often consider both financial and non-financial factors. A comprehensive evaluation can also focus on other dimensions such as customer satisfaction, employee engagement, production efficiency, and market share, among others. Evaluation systems may follow a structured, step-by-step approach, but they do not necessarily proceed in a straight-line fashion as statement A suggests; flexibility is often essential to adapt to different scenarios and outcomes. Statement B reflects the reality that an evaluation may encompass the product and marketing plan together or treat them separately, depending on the specific objectives of the evaluation. And indeed, C is correct in stating that an evaluation typically assesses performance and progress.

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