Provided by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida
Balanced Scorecard Main Page | Balanced
Scorecard Discussion Questions | Graduate MA Course
1. According to Kaplan and Norton, what should be the main perspective of the balanced scorecard?
a. Financial.
b. Customer.
c. Internal business process.
d. Learning and growth.
e. None of these.
2. Kaplan and Norton define a company’s strategy as
a. defining the market and customers the company plans to
serve.
b. defining the critical internal process needed to compete.
c. defining the individual and organizational capabilities
needed to compete.
d. a. and b.
e. a., b. and c.
3. Kaplan and Norton define the generic internal value chain as
a. production and distribution.
b. production, distribution and post sales service.
c. innovation and operations.
d. innovation, operations and post sales service.
e. a. and c.
4. The metaphor used for the balanced scorecard by Kaplan and Norton is
a. a set of airplane instrument dials.
b. a flight simulator.
c. a radar screen.
d. a flight path.
e. none of the above.
5. As defined by Kaplan and Norton, leading indicators are always
a. financial.
b. non-financial.
c. drivers.
d. internal.
e. short term.
6. According to Norton and Kaplan, the balanced scorecard should be used as
a. a control system.
b. a diagnostic system.
c. a strategic system.
d. a. and b.
e. b. and c.
7. The various stakeholders include vendors, employees, distributors, customers, stockholders and society. According to Norton and Kaplan, which of these should be represented on the balanced scorecard?
a. all stakeholders are important and should be included.
b. all except society which is too general to be included.
c. only employees, customers and stockholders.
d. only those that are vital for achieving the company’s
strategy.
e. none of these.
8. Norton and Kaplan recommend that a separate balanced scorecard be developed for
a. each department within the company.
b. each product line within the company.
c. each division or business unit with the company.
d. the whole company.
e. none of these.
9. Norton and Kaplan argue that balanced scorecard measurements should
a. clearly indicate the person responsible.
b. be linked.
c. be reinforcing.
d. b. and c.
e. a., b. and c.
10. Advocates of which of the following theories would be the most likely to criticize the balanced scorecard concept?
a. Japanese management theory.
b. Deming’s theory of management.
c. JIT management theory.
d. Goldratt’s theory of constraints.
e. CAM-I’s management theory.
11. In the Balanced Scorecard, Kaplan and Norton describe four perspectives that need to be balanced for companies to become and remain competitive. Which perspective places more emphasis on investing in employees?
a. Financial.
b. Customer.
c. Internal business processes.
d. Learning & growth.
12. According to Kaplan & Norton, which of the balanced scorecard perspectives is first in the chain of cause and effect relationships?
a.
Financial.
b. Customer.
c. Internal business processes.
d. Learning & growth.
13. According to Kaplan & Norton, which of the balanced scorecard perspectives serves as the focus of the other perspectives?
a. Financial.
b. Customer.
c. Internal business processes.
d. Learning & growth.
14. Which of the following is not one of the main parts of the Kaplan-Norton balanced scorecard concept? Balancing:
a. financial and
non financial measurements.
b. cash flows and non cash flows.
c. short term and long term measurements.
d. leading and lagging indicators.
e. internal and
external measurements.
15. Arrange the five measurements below in the order of cause and effect.
A. Improve
customer loyalty.
B. Improve return on capital employed.
C. Improve repeat and expanded sales.
D. Improve cycle time.
E. Improve on time delivery to customer.
F. Improve employee skills.
a. B
→C →A
→E
→D
→F
b.
F
→E
→D
→C
→A
→B
c. F
→D
→E
→A
→C
→B
d.
A
→D
→F
→E
→B
→C
e.
C
→A
→E
→B
→D
→F
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Balanced Scorecard MC Solution