ECONOMICS

Detailed explanation-1: -1. Financial Perspective: The balanced scorecard uses financial performance measures, such as net income and return on investment, because all for-profit organisations use them. Financial performance measures provide a common language for analysing and comparing companies.

Detailed explanation-2: -An example of financial perspective in balanced scorecard is operating income and revenue growth. For organisations that do not have shareholders, the financial perspective indicates how well the strategy and operations contribute to improving the organisation’s financial health.

Detailed explanation-3: -Under the financial perspective, the goal of a company is to ensure that it earns a return on the investments made and manages key risks involved in running the business. The goals can be achieved by satisfying the needs of all players involved with the business, such as the shareholders, customers, and suppliers.