Explanation:
Key Performance Indicators is a set of measures that a company or industry uses to measure and/or compare performance in terms of meeting their strategic and operational goals. KPIs vary with company to company, depending on their priorities or performance criteria. A company must establish its strategic and operational goals and then choose their KPIs which can best reflect those goals. For example, if a software company’s goal is to have the fastest growth in its industry, its main performance indicator may be the measure of its annual revenue growth.
Incorrect Answers:
A: Determination of size and complexity of the enterprise is the selection criteria of the KRI, not KPI. KPI does not have any relevancy with size and complexity of the enterprise.
B: This is not the valid answer.
C: Type of market in which the enterprise is operating do not affect the selection of KPIs.