Which of the following statements is correct?
A)Once a firm has defined its purpose, scope, and objectives, it must develop a strategy, or strategies, for achieving its goals. The statement of corporate strategies sets forth detailed plans rather than broad approaches.
B)A firm's corporate purpose states the general philosophy of the business and provides managers with specific operational objectives.
C)Operating plans provide detailed guidance, consistent with the corporate strategy, to help operating managers meet the corporate objectives. These operating plans can be developed for any time horizon, but many companies use a 5-year horizon.
D)A firm's mission statement defines its lines of business and geographic area of operations.

Question

Quizplus · Accepted Answer

Operating plans provide detailed guidance to help operating managers meet the corporate objectives set forth in the statement of corporate strategies. The statement of corporate strategies sets forth broad approaches rather than detailed plans, and a firm's corporate purpose states the general philosophy of the business, but does not provide specific operational objectives. A mission statement defines a firm's purpose, customers, products or services, geographic area of operation, and technology. The time horizon for operating plans can vary, but many companies use a 1-year horizon, as it is easier to predict and monitor performance over a shorter period.

Which of the Following Statements Is Correct