Which of the following statements is true? A balanced scorecard consists of a report showing a performance measure such as ROI or residual income for all of the divisions in a company that generate profits. If a strategy is not working, it should become evident on the balanced scorecard when some of the predicted effects don’t occur. In essence, a balanced scorecard lays out a theory of how the company can take concrete actions to attain its desired outcomes. The strategy should seem plausible, but it should be regarded as only a theory.

Which of the following statements is true?

1. A balanced scorecard consists of a report showing a performance measure such as ROI or residual income for all of the divisions in a company that generate profits.
2. If a strategy is not working, it should become evident on the balanced scorecard when some of the predicted effects don’t occur.
3. In essence, a balanced scorecard lays out a theory of how the company can take concrete actions to attain its desired outcomes. The strategy should seem plausible, but it should be regarded as only a theory.