Net income as a percent of stockholders equity what advice


Question - The senior management of Calvin Company has proposed the following three performance measures for the company:

1. Net income as a percent of stockholders' equity

2. Revenue growth

3. Employee satisfaction

Management believes these three measures combine both financial and nonfinancial measures and are thus superior to using just financial measures. What advice would you give Calvin Company for improving its performance measurement system?

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Accounting Basics: Net income as a percent of stockholders equity what advice
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