What term describes a formal written declaration that states the purpose of a company?

• A. Vision statement
• B. Mission statement
• C. Statement of interest
• D. Projection of goals

Answer: (B)

A mission statement is the formal written declaration that states the purpose of a company. It explains why the organization exists, who it serves, and what it does to fulfill that purpose. This makes it a practical guide for decisions, strategies, and daily operations, turning a broad sense of purpose into concrete commitments.

In contrast, a vision statement looks forward to what the company hopes to achieve in the long term and can be more aspirational than action-oriented. A statement of interest is typically a personal or organizational inquiry rather than a formal business declaration, and a projection of goals focuses on future targets or forecasts rather than the core purpose of the business.