20CA2017 - Fundamentals of Business - Busi metr & KPI

A key performance indicator (KPI) is:

• A quantitative measure of business performance.
• A qualitative measure of business performance.
• A strategic goal for the organization.
• A tactical objective for a department.

Which of the following is NOT a common category of KPIs?

• Employee satisfaction
• Financial
• Customer
• Internal process

A metric is:

• A specific measurement used to assess a KPI.
• A qualitative measure of business performance.
• A strategic goal for the organization.
• A tactical objective for a department.

The SMART framework for setting KPIs stands for:

• Specific, Measurable, Achievable, Relevant, Time-bound
• Strategic, Measurable, Achievable, Realistic, Time-bound
• Simple, Measurable, Attainable, Relevant, Timely
• Specific, Meaningful, Achievable, Relevant, Time-bound

Which of the following is a common financial KPI?

• Return on investment (ROI)
• Customer satisfaction score
• Employee turnover rate
• Market share

A customer satisfaction score is an example of a:

• Customer KPI
• Financial KPI
• Internal process KPI
• Employee satisfaction KPI

Which of the following is a common internal process KPI?

• Cycle time
• Net promoter score
• Employee turnover rate
• Average order value

What is the difference between a metric and a measure?

• A metric is a specific unit of measurement, while a measure is a broader concept.
• A metric is a quantitative measurement, while a measure is a qualitative assessment.
• There is no difference between the two terms.
• A metric is a subjective evaluation, while a measure is an objective assessment.

What is the primary purpose of key performance indicators (KPIs)?

• To measure the overall health of a business
• To assess customer satisfaction
• To evaluate financial performance
• To track employee productivity

Which of the following is NOT a common type of KPI?

• Strategic KPI
• Operational KPI
• Lagging indicator
• Leading indicator