Which of the Following Statements About Organizational Missions Is FALSE

question 65

Multiple Choice

Which of the following statements about organizational missions is FALSE?

• A) They reflect a company's purpose.
• B) They indicate what a company intends to contribute to society.
• C) They are formulated after strategies are known.
• D) They define a company's reason for existence.
• E) They provide guidance for functional area missions.

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.

Economic Decisions

Choices made by individuals, firms, or governments regarding the allocation of resources to satisfy needs and wants.

Marginal Decision Maker

is an individual or entity that makes choices based on the additional cost or benefit of the next unit of consumption or production.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than others, leading to more efficient trade.