Detailed Answer
(b) The requirement is to identify the purpose of a balanced
scorecard. Answer (b) is correct because the balanced
scorecard uses financial and nonfinancial measures to measure
performance. Answer (a) is incorrect because strategic planning
is designed to develop strategy. Answer (c) is incorrect because
developing cause-and-effect linkages is an important part of developing
a balanced scorecard. Answer (d) is incorrect because
setting priorities is a part of strategic planning.
