Activity 1.Please encircle the letter under each item that best reflects your answer.

1.Which of these is the perspective of the balanced scorecard that is at the top of a nonprofit organizations mission statement?

a.Financial perspective

b.Internal business and production process perspective

c.Learning and growth perspective

d.Customer perspective

2.Which of these is the perspective of the balanced scorecard that is at the top list for a company's lenders and shareholders?

a.Financial perspective

b.Internal business and production process perspective

c.Learning and growth perspective

d.Customer perspective

3.Financial control highlights

a.falling profits c. high prices

b.poor quality d. unsatisfactory service

4.Which of the following statements is FALSE regarding financial and nonfinancial measures of performance?

a.Nonfinancial measures may help to anticipate and explain financial results.

b.Financial results include aggregate measures.

c.Nonfinancial results may help to identify the causes of financial results.

d.Financial results are lead indicators of future success.

5.The purpose of the balance scorecard is BEST described as helping an organization

a.develop customer relation.

b.mobilize employee skills for continuous improvements in processing capabilities, quality, and response times.

c.introduce innovative products and services desired by target customers.

d.translate an organization's mission and strategy into a set of performance measures that help to implement the strategy.

Activity 2. Let us try to check your understanding of the four perspectives contained in the Balanced Scorecard. On the space provided for, classify each performance measure. Write F (Financial); C (Customer); P (Process); or LG (Learning and Growth).

_____1.Market share

_____2.Earnings per share

_____3.Manufacturing cycle efficiency

_____4.Machine downtime

_____5.Number of patents held

_____6.Employee suggestions

_____7.Number of repeat sales

_____8.Levels of inventories held

_____9.Number of vendors used

_____10.Cash flow from operations

_____11.Employee training hours

_____12.Gross margin

_____13.Employee education

_____14.Manufacturing downtime

_____15.Service response time