The Difference Between the Concept of a Company Mission Statement

question 48

Multiple Choice

The difference between the concept of a company mission statement and the concept of a strategic vision is that a

• A)mission concerns what to do to achieve short-term objectives, while a strategic vision concerns what to do to achieve long-term performance targets.
• B)mission statement focuses on the methods needed to make a profit, whereas a strategic vision concerns what business model to employ in striving to make a profit.
• C)mission statement deals with what to accomplish on behalf of shareholders, while a strategic vision concerns what to accomplish on behalf of customers.
• D)mission statement typically concerns a company's purpose and its present business scope, whereas the principal concern of a strategic vision is a company's aspirations for its future.
• E)mission statement deals with "where we are headed," whereas a strategic vision provides the critical answer to "how will we get there?"

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Definitions:

Consolidation Worksheet

A tool used in accounting to combine the financial statements of a parent company and its subsidiaries into a single set of statements.

Fair Value

The estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Book Value

The net value of a company's assets minus its liabilities, often used as a measure of the company's worth on its balance sheet.

Partial Equity Method

An accounting approach where an investor recognizes income from an investee to the extent of dividends received and changes in the investee's equity.