National Occupational Competency Testing Institute (NOCTI) Business Practice Exam

A mission statement describes an organization's?

1. Financial goals

2. Purpose or goal

3. Policies and procedures

4. Strategic plan

The correct answer is: Purpose or goal

A mission statement primarily articulates the purpose or goal of an organization. It serves as a declaration that defines the organization's fundamental purpose, what it seeks to achieve, and the reasons behind its existence. This statement often encapsulates the values and beliefs that guide the organization's operations and decision-making processes. In contrast, financial goals refer specifically to the monetary targets that an organization aims to achieve, such as revenue or profit growth, which is not the focus of a mission statement. Policies and procedures are the established guidelines under which an organization operates and are more about operational practices than the overarching mission. A strategic plan outlines the specific actions and steps an organization will take to achieve its mission, which is a broader concept. Therefore, the mission statement's primary function is to convey the organization's guiding purpose and goals to both internal stakeholders and the public.