Why Might an Overly Narrow Mission Statement Be Problematic? ​

question 24

Multiple Choice

Why might an overly narrow mission statement be problematic? ​

• A) ​It makes it harder to identify the strengths of the firm.
• B) ​It could cause firms to pursue strategies where their strengths are limited.
• C) ​It makes it harder to develop measurable objectives.
• D) ​It could cause the firm to miss out on new opportunities.
• E) ​It could make it difficult for a firm to select a target market.

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Definitions:

Subsidiaries

Companies that are controlled by another company, known as the parent company, through ownership of more than half of the voting stock or through other mechanisms of control.

Net Assets

The total assets of a company minus its total liabilities, representing the owners' equity in the company.

Business Combination

Represents a transaction or event where an acquirer obtains control of one or more businesses.

Journal Entry

A record in bookkeeping that logs the debit and credit aspects of a financial transaction.