Question

Which of the following best describes the financial approach that uses quantitative benchmarks that provide guidelines of where a client’s financial profile should be.

Group of answer choices

Metrics Approach.

Strategic Approach

Cash Flow Approach.

Present Value of Goals Approach

Answer 1

As per my opinion, the answer would be " Metrics Approach".

Metrics are measures of quantitative assessment commonly used for comparing and tracking performance on production.

It can be used in a variety of scenarios. It is heavily relied in Financial matters.

Some examples of Financial metrics are

- Earnings before interest taxes

- Economic value added

-Berry ratios

-Contibution margin

-Liquidity ratio

- Interest cover

-Days in accounts receivable

- Net cash flow

- Gross Profit Margin

- Transaction error rate

These are some parameters, on which clien' s financial profile are measured. In another words these are some benchmarks . On the basis of this, one format is made and compared with the benchmarks figure.

It place the customer' s Financial position..if the figures crosses the benchmark figure then we'll and good and if doesn't cross the figures, then those points are highlighted and some resolving steps are taken.