04 Identify two reasons why a director might want to measure business performance. [2]

[BASEL Moderator]

04 Identify two reasons why a director might want to measure business performance. [2]

Possible KN Points:
• See how well meeting objectives OR see how well business is doing OR indicates what a business objective might be e.g. level of profitability or levels of sales or productivity
• Aid decision making OR Identify strengths and weaknesses OR Identify what needs to be done to improve OR practical examples such as to determine rewards for employees
• Way to compare with competitors
• To compare with previous years OR Spot trends
• Report to shareholders