Thank u Naaz, this is same in handouts, page 151.
-- in this mcq they are asking about the problem associated with using only financial ratios.
so according to me it should be,
► There are many different measures available
see this:
Some key financial ratios that are particularly useful as criteria for strategy evaluation are as
follows:
1. Return on investment
2. Return on equity
3. Profit margin
4. Market share
5. Debt to equity
6. Earnings per share
7. Sales growth
8. Asset growth
but option no 1 is the strategy used for evaluation.
plz comment on it.......:)
________________
Mehreen Humayun
4th Semester, MBA(Banking)
Distance Learning Student
Quality in Everything We Do
vuZs Banking Group: http://groups.google.com/group/vuzs_banking?hl=en
On Sun, Jul 3, 2011 at 1:27 PM, Mehreen Humayun <mc090400472@vu.edu.pk> wrote:
In strategy formulation phase, what can be the problem when only financial ratios are used to measure organizational performance?
► They need to be compared with competitors'
► They are only understandable by accountants
► There are many different measures available
► The measures are usually inconsistent________________Mehreen Humayun4th Semester, MBA(Banking)Distance Learning StudentQuality in Everything We Do
vuZs Banking Group: http://groups.google.com/group/vuzs_banking?hl=en
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