Which of These Examples of a Mission Statement's Focus Area

question 25

Multiple Choice

Which of these examples of a mission statement's focus area does NOT identify the utility of the firm's products to its customers?

• A) AT&T focuses on communication rather than telephones.
• B) ExxonMobil focuses on oil and gas rather than energy.
• C) Union Pacific focuses on transportation rather than railroads.
• D) Universal Studios focuses on entertainment rather than movies.
• E) A clothing retailer focuses on attractive looks rather than on clothes.

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Definitions:

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to taxation, meaning that taxpayers pay the same percentage of their income in taxes regardless of how much they earn.

Regressive Tax

A tax that takes a larger percentage of income from low-income earners than from high-income earners, essentially burdening the poor more than the rich.

Proportional Tax

A proportional tax is a tax system where the tax rate remains constant regardless of the amount subject to taxation, meaning individuals pay the same percentage of their income regardless of income level.

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting those with lower income.