Three Indispensable Components of the Mission Statements Are Specifications of The

question 12

Multiple Choice

Three indispensable components of the mission statements are specifications of the:

• A) Basic product or service, primary markets and principal technology
• B) Self-concept, managerial philosophy and public image
• C) Concern for survival through growth, self-concept and primary markets
• D) Economic goals, core competencies and primary and secondary customers

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Definitions:

Market Yield

The current rate of return anticipated on a bond if held until maturity, expressed as an annual percentage.

Component Cost

The cost related to each source of capital, such as debt and equity, that a company uses for funding.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Cost of Retained Earnings

The opportunity cost for shareholders for having the company retain the earnings instead of distributing them, often considered in investment and dividend decisions.