1) Which statement is TRUE? a) Companies must choose between having a mission statement or a vision statement. b) A company can't have a mission statement unless it has a vision statement. c) A vision statement cannot be established until a company has developed its mission statement. d) The vision statement should be established before the mission statement. 2) Which of these basic questions should a vision statement answer? a) What do we want to become? b) What is our business? c) What is our core strength? d) Who are our competitors? 3) Which group would NOT be classified as stakeholders? a) governments b) creditors c) universities d) employees 4) In developing a mission statement, arousing emotion a) is not a benefit b) is futile c) is important d) should be avoided if possible 5) What question is asked in conjunction with the philosophy component of a mission statement? a) What are the firm's major products or services? b) What are the basic beliefs, values, aspirations, and ethical priorities of the firm? c) Is the firm responsive to social, community, and environmental concerns? d) Are employees a valuable asset of the firm 6) An effective mission statement should do all of the following EXCEPT a) be inspiring. b) reveal that the firm is environmentally responsible. c) identify the utility of a firm's products. d) include monetary amounts, numbers, percentages and ratios. 7) The question, "geographically, where does the firm compete?" is part of the ________ component of the mission statement. a) customers b) products or services c) technology d) markets 8) Effective and carefully planned mission statements a) ) require infrequent major changes, but are always subject to revision. b) do not require revision. c) require major revision every few years. d) require major changes every few quarters. 9) In the process of developing a mission statement, it is important to involve a) the board of directors only. b) as few managers as possible. c) as many managers as possible. d) upper-level management only. 10) When an effective process is followed, developing a ________ statement can create an "emotional bond" among employees and customers. a) mission b) values c) vision d) long-term objectives

David Chapter 2

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