Which of the following is an example of a non-financial performance measure?

Prepare for the Ontario PHBI Financial Planning and Management Test. Study with flashcards and multiple choice questions, each with hints and explanations. Ensure your success with adequate preparation!

The correct answer highlights an important aspect of evaluating business performance that goes beyond just financial metrics. Percentage of market share is classified as a non-financial performance measure because it assesses the relative competitiveness of a company in its industry rather than its financial health. Market share reflects how well a company is performing against its competitors in terms of sales volume in a specific market. This measure can provide valuable insights into a company’s market position, consumer preference, and brand strength, which are vital for long-term strategic planning.

In contrast, the other options are purely financial performance measures. Gross profit margin, return on investment, and net profit are all indicators that focus strictly on financial outcomes, such as profitability and efficiency in using resources. They reflect the financial results of a company's operations rather than its overall standing in the marketplace, illustrating the distinction between financial and non-financial metrics in performance measurement.

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