A Clear and Concise Expression of What an Organization Does

question 136

Multiple Choice

A clear and concise expression of what an organization does, whom it does it for, its basic good or service, and its values is known as its

• A) Vision.
• B) Mission.
• C) Strategy.
• D) Policy.
• E) Objective.

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Definitions:

Explicit Cost

The monetary payment made by a firm to an outsider to obtain a resource.

Accounting Profits

The net income a company has after subtracting all costs and expenses from total revenue, as recognized in financial statements.

Opportunity Cost

The value of the next best alternative that is foregone as a result of making a particular decision.

Accounting Profits

The total revenues of a business minus the explicit costs, essentially the net income on the financial statements.