Which of the Following Is True of an Effective Vision

question 98

Multiple Choice

Which of the following is true of an effective vision statement?

• A)It clearly describes an organization as it currently operates.
• B)It inspires the members of an organization.
• C)It is an estimation of the profits of an organization.
• D)It clarifies the short-term direction of a company.
• E)It is a statement strictly based on financial targets.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership of a fraction of a corporation, entitling the holder to a share of the company's profits.

Retained Earnings

Refers to the portion of net income left over for the business after it has paid out dividends to its shareholders.

Net Income

The profit a company generates after all expenses, taxes, and costs have been subtracted from total revenue.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or stock.