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:

Short-Run Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a short time period, given the current price levels.

Aggregate Output

The total quantity of goods and services produced in an economy over a given period, often considered synonymous with real GDP.

Price Level

The standard price level of the wide variety of goods and services in the economy.

Real Income

The income of an individual or group after taking into consideration the effects of inflation on purchasing power.