Name: Score:

Instructor: Ms. July Joy S. Lumantas, CPA Date:

Prelim Exam

Instruction: Encircle the letter of the correct answer. NO ERASURES.

Part 1. Multiple Choice.

1. Balanced scorecard perspective measures company's success in targeted segments of customers is

classified as
a. internal business process perspective
b. customer perspective
c. learning perspective
d. financial perspective

2. Balanced scorecard perspective focuses on all operations which lead to value creation process for
customers is classified as
a. learning perspective
b. financial perspective
c. internal business process perspective
d. customer perspective

3. An example of financial perspective in balanced scorecard is

a. employee turnover rates
b. operating capabilities and number of patents
c. operating income and revenue growth
d. customer satisfaction and market share

4. Considering balanced scorecard, perspective in which performance of organization includes

a. financial perspective
b. learning and growth perspective
c. customer perspective
d. all of above

5. An example of customer perspective in balanced scorecard is

a. employee turnover rates
b. operating capabilities and number of patents
c. operating income and revenue growth
d. customer satisfaction and market share

6. Which one of the following is not one of the Balanced Scorecards four generic perspectives?
a. marketing and advertising c. internal business processes
b. innovation and learning d. financial

7. Which one of the following is a lag performance indicator?

a. number of complaints received from customers c. output per employee
b. return on capital employed d. number of training hours per employee

8. Which one of the following statements is true?

a. Balanced Scorecards are a feedback mechanism
b. Balanced Scorecards can only be updated on an annual basis
c. Balanced Scorecards always have four perspectives
d. Balanced Scorecards can be used in Not-for-Profit organisations

9. Which of the following statements is false? Balanced scorecards:

a. can be used to produce strategy maps
b. are one type of performance dashboard
c. cannot be used in conjunction with budgetary control systems
d. can be cascaded to different levels/parts of organisations
10. Which of the following statements is correct?
a. Balanced scorecards always report using the same time periods as the financial accounting
system.
b. One fundamental idea of balanced scorecards is to increase the number of performance
indicators used to manage the business.
c. Organisations sometimes use a traffic-light system on their balanced scorecard to help them
prioritise their activities.
d. The fundamental idea of balanced scorecards is to create corporate strategy.

11. Writing a business plan can ensure that an entrepreneur

a. figures out how to make her business work. c. meets his target revenue goals.
b. achieves her expense projections.

12. Making the beliefs, values, and behavioral norms explicit and intentional builds the __________ of
an organization.
a. mission b. culture c. vision

13. Publicity is _______ promotion through media outlets.

a. free b. paid c. discounted

14. The _________ analysis addresses the roles of the community, region, nation, and world in a
business.
a. environmental b. industry c. business

15. The cover page of a business plan should contain

a. key financial highlights
b. contact information.
c. the funding request.

16. The quick verbal summary of a business plan is called a(n)

a. elevator pitch. b. concept pitch. c. business pitch.

17. Dividing fixed costs by gross profit per unit yields

a. cost ratio. b. breakeven units. c. profitability ratio.

18. A _____________ is a document that thoroughly explains a business idea and how it will be carried
out.
a. marketing plan b. financial analysis c. business plan

19. The ______________ section of the business plan should be written last.
a. financial statements b. executive summary c. appendices

20. A business plan should be _______________ to convey critical information to potential investors.
a. long and detailed b. crisp and concise c. complex and technical

21. What does the acronym SMART stand for?

a. Suitable, measurable, actionable, rewarded and timely
b. Specific, measurable, actionable, resourced and timely
c. Standardised, measurable, achievable, rewarded, and timely
d. Specific, measurable, achievable, rewarded and timely

22. To what time-frame do strategic plans relate?

a. Long-term
b. Medium-term
c. Short-term
d. Unspecified time it takes to achieve an aim
23. What one of the following is not a key management skill in planning?
a. Conceptual skills
b. Analytical skills
c. IT and computing skills
d. Communication skills

24. The vision and mission statements for an organization set the general direction of the organization.
The balanced scorecard selects financial performance measures from the company's vision.
a. Only statement 1 is incorrect.
b. Only statement 2 is incorrect.
c. Both statements are incorrect.
d. Both statements are not incorrect.

Part 2. Essay.

1. What is balanced scorecard? (4 pts)

2. Name three disadvantages of balanced scorecard. (2 pts each)

3. Identify and differentiate the four perspective of the balanced scorecard. (4 pts each)