An Effective Mission Statement Should Do All of the Following

question 98

Multiple Choice

An effective mission statement should do all of the following except:

• A) include monetary amounts, numbers, percentages and ratios.
• B) be inspiring.
• C) reveal that the firm is environmentally responsible.
• D) identify the utility of a firm's products.
• E) be reconciliatory.

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Definitions:

Debt-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, often used to assess the company's financial leverage.

Residual Dividend Policy

A strategy where dividends paid to shareholders are based on earnings left over after all operational and investment costs are covered.

After-Tax Earnings

The net income of a company after all taxes have been deducted from revenues.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing corporation.