Differentiate Between Problem and Purpose Statements of Business Reports

question 61

Short Answer

Differentiate between problem and purpose statements of business reports.
The problem statement provides a clear description of the situation behind the creation of a business report. Problem statements are generally written as declarative statements: "Sales are decreasing at Company X."
The purpose statement is often written in the form of a question or infinitive phrase. Thus, if the problem is that Company X wants to know why sales are decreasing, the purpose statement may be "To determine the causes of decreasing sales at Company X" or "What are the causes of decreasing sales at Company X?"

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Definitions:

Nominal Interest Rate

The interest rate stated on a loan or bond, not adjusted for inflation or other factors that affect the real value of interest earnings.

Inflation Rate

The percentage increase in the general level of prices for goods and services over a specific period, usually a year.

Real Interest Rate

The interest rate adjusted for inflation, representing the true cost of borrowing or the true yield on an investment.

Depreciating

Depreciating refers to the reduction in the value of an asset over time due to factors such as wear and tear or obsolescence.