Why Is It Better for Firms to Keep Their Vision

question 22

Essay

Why is it better for firms to keep their vision statements customer-oriented rather than product-oriented?

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Definitions:

Homemade Dividend

A concept where investors create their own dividend policy by selling a portion of their portfolio of equities instead of relying on company-issued dividends.

Liquidating Dividend

A type of dividend paid by a company that is returning a portion of the capital to its shareholders, typically during dissolution.

Price/earnings Ratio

The Price/Earnings Ratio (P/E Ratio) is a valuation metric that compares the current share price of a company to its per-share earnings, used by investors to evaluate the investment attractiveness of a company.

Excess Cash

Refers to the amount of cash a company holds that is beyond what it requires for day-to-day operations and investments.