Fundamental statements that serve as guides to management practice are known as?

• A. Business Policies
• B. Mission Statements
• C. Strategic Goals
• D. Organizational Charts

Answer: (A)

Fundamental statements that guide how managers act in everyday situations are business policies. They set the general rules and standards that shape decision making and behavior across the organization, creating consistency and control in operations. A mission statement explains why the organization exists and its values, not the day-to-day rules. Strategic goals describe specific targets to achieve over time, and an organizational chart shows the company's structure, not the guiding practices. So business policies are the statements that directly guide management practice.