Question

19. Consider a project consisting of five activities. The immediate predecessors and the activity times are summarized as below:

Activity	Immediate Predecessor	Activity time (in days)
A	None	3
B	A	2
C	A	1
D	B, C	3
E	D	4

In CPM, what is the completion time of the project?

A		12 days
B		11 days
C		13 days
		20. A forecasting method has produced the following over the past five months. What is the mean absolute deviation (MAD)? Actual Forecast Forecast Error 10 11 -1 8 10 -2 10 8 2 6 6 0 9 8 1 A -1.0 B -0.2 C 1.2 D 0.0 21. Which of the following statements is INCORRECT regarding corporate missions? A They reflect a company's purpose. B They indicate what a company intends to contribute to society. C They are the long-term action plans to be adopted by companies. D They define a company's reason for existence.

Answer 1

21. The correct answer is option C.

Mission of an organization describes the function of organization and what exactly the organization is trying to achieve. Mission is considered as the path which helps in meeting the goal. Drafting a companywide mission statement is important for the organization because it helps the company to make strategic plans to meet the goals. Mission statement should be formulated keeping in mind the following business aspects. They are: -

• The goal of the organization and the underlying philosophies.
• Who the company is because mission statement gives clear picture about the customers, employees, suppliers, competitors, etc.
• It should be formulated keeping in mind the business processes and activities and what is exactly done by the business.
• It also involves the value the business is bringing to the customers, stakeholders, community, etc. and what is the reason behind this.