With Respect to the Concepts of "Purpose" and "Mission," Which

question 212

Multiple Choice

With respect to the concepts of "purpose" and "mission," which of the following is correct?

• A) A purpose is a statement of how an organization will behave with respect its stakeholders.
• B) A mission is only relevant for not-for-profit organizations, while a purpose is relevant only for profit-making businesses.
• C) A purpose is an organization's reason for being.
• D) There is really no difference between a purpose and a mission.
• E) A purpose is only relevant for not-for-profit organizations, while a mission is relevant only for profit-making businesses.

---

Definitions:

Perpetual fund

A type of investment fund with no fixed termination date, allowing investors to contribute and withdraw capital indefinitely.

Compounded annually

Interest on a deposit or loan calculated once per year, where each year's interest is added to the principal.

Semi-annual compounded

Interest on an investment is calculated twice a year and added to the principal.

Nominal rate

The stated or face interest rate on a loan or investment, not adjusted for inflation or the frequency of compounding.