Final answer:
A firm's mission statement defines its long-term goals and what it wants to avoid in the meantime.
Step-by-step explanation:
A firm's mission statement is a concise summary of its purpose and goals. It defines what the firm wants to achieve in the long run and also outlines what it wants to avoid in the meantime. The mission statement provides a guiding framework for the firm's strategic decisions and helps align employees and stakeholders towards a common vision.
For example, a technology company's mission statement may state that it wants to be a leader in innovative software solutions while avoiding unethical business practices. This mission statement sets the direction for the company's long-term growth and sets boundaries for its activities in the short term.