How Is an Organization's Mission Different from Its Vision

question 1

Multiple Choice

How is an organization's mission different from its vision?

• A) The vision is the path to the mission
• B) The vision depends on stakeholder buy-in the mission does not
• C) The mission is what it ought to be doing
• D) The mission identifies commonalities

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Definitions:

Operating Leverage

An indicator of the degree to which net operating income responds to a specific percentage variation in sales revenue.

Sales Mix

A composition of different products or services that a company sells, emphasizing the proportion of each product sold relative to total sales.

Break-even Point

The point at which total cost and total revenue are equal, meaning no net loss or gain, and the business is not making a profit but not losing money either.

Contribution Format

A type of income statement format that separates fixed costs from variable costs to highlight the contribution margin.