Question

Which of the following best explains the cause-and-effect relationships portrayed by the Balanced Scorecard? Multiple Choice Improvements in the Process perspective leads to improvements in the Learning & Growth perspective. Improvements in the Learning & Growth and Customer perspectives lead to improvements in the Process perspective. Improvements in areas related to Customer and Process perspectives lead to improvements in the Financial perspective. Improvements in the Financial and Process perspectives lead to improvements in the Customer perspective.

Answer 1

Improvements in areas related to Customer and Process Perspectives lead to improvements in the Financial Perspective.

Step-by-step explanation:

A balance scorecard can be defined as a performance metrics used for measuring and assessing the quality of performance of a company.

Generally, the four (4) performance metrics of a balance scorecard includes the following; customer, learning and growth, internal business processes, and financial.

Hence, a balance scorecard should be used to determine whether or not the operations of a business is in synchronization with its vision statement and values.

Typically, improvements in areas related to Customer and Process Perspectives lead to improvements in the Financial Perspective best explains the cause-and-effect relationships portrayed by the Balanced Scorecard.

Cause and effect can be defined as the relationship between two things or events in which an occurrence of one (cause) leads to the occurrence of another (effect).