Question

 Which of the following states the firm's overall purpose?

 Statement of corporate objectives

 Corporate scope

 Mission statement

 Which of the following defines the company's lines of business and its geographic area of operations?

 Statement of corporate objectives

 Corporate scope

 Mission statement

 Which of the following sets forth specific goals or targets to help operating managers focus on the firm's primary objectives?

 Statement of corporate objectives

 Corporate scope

 Mission statement

 Which of the following statements about the financial planning process are true? Check all that apply.

 Firms should use a performance-based management compensation system that is based on a manager's ability to achieve short-run

 success.

 Once the forecasted financial statements are completed, the firm must determine how much capital it will need to support these plans.

 Management must monitor operations after implementing a financial plan to detect deviations from the plan and adjust accordingly.

Answer 1

Which of the following states the firm's overall purpose?

Mission statement states the firm's overall purpose

Therefore correct answer is option: Mission statement

The mission statement of an organization helps the management to clearly define the strategy of firm. Generally it includes key values and beliefs of the firm.

Which of the following defines the company's lines of business and its geographic area of operations?

Corporate scope defines the company's lines of business and its geographic area of operations

Therefore correct answer is option: Corporate scope

Corporate scope of company includes decisions like it wants to focus in one area or it wants to diversify its operations to different geographical locations.

Which of the following sets forth specific goals or targets to help operating managers focus on the firm's primary objectives?

Statement of corporate objectives sets forth specific goals or targets to help operating managers’ focus on the firm's primary objectives.

Therefore correct answer is option: Statement of corporate objectives

The corporate objectives could be quantitative as well as qualitative and its helps the organizations to clearly define its targets.

The true statements about the financial planning process are –

· Once the forecasted financial statements are completed, the firm must determine how much capital it will need to support these plans.

· Management must monitor operations after implementing a financial plan to detect deviations from the plan and adjust accordingly.

This statement is not true -

Firms should use a performance-based management compensation system that is based on a manager's ability to achieve short-run success

The true statement is –

Firms should use a performance-based management compensation system that rewards for creating shareholder’s wealth which is for long-run success