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CMA Foundation · Fundamentals of Business Economics and Management · Planning, Organizing, Staffing and Leading

A company's board decides that over the next ten years it will become the leading manufacturer of electric two-wheelers in India. In the hierarchy of plans, this broad statement of intended direction is best described as a:

The statement is an objective or mission-level goal, because it states the broad, long-term end the company wants to reach. Procedures give sequences of steps, rules prescribe specific actions, and budgets express plans in numbers, so they do not describe the overall intended direction.

  1. AProcedure
  2. BRule
  3. CObjective or mission-level goalCorrect
  4. DBudget

Explanation

A long-term statement of what the organisation wants to become is a goal at the objective or mission level. A procedure lays out the sequence of steps, a rule is a specific compulsory action, and a budget is a numerical plan of resources. None of these describe a broad long-term aim.

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