Final answer:
Strategic objectives focus on achieving a firm's mission rather than defining why a firm exists, which is described in its mission statement. Therefore, the notion that strategic objectives identify why a firm exists is false. As a company becomes established, outside investors rely less on personal knowledge of managers and more on publicly available operational data.
Step-by-step explanation:
Strategic objectives are used to set the priorities for a firm and are focused on advancing its mission and moving the organization towards its envisioned future. The statement that strategic objectives usually identify why a firm exists is false. A firm's existence is typically defined by its mission statement, which outlines the company's purpose and overall intention. Strategic objectives, on the other hand, are the specific goals that a firm sets to achieve its mission. These objectives are actionable steps that guide a firm's actions and decisions to ensure it stays on the path to fulfilling its greater purpose.
For a firm that becomes established and projects profitability, detailed knowledge of individual managers and their business plans is less critical, as a broad array of information about the company's operations becomes available. Outside investors such as bondholders and shareholders can rely on this information when deciding to provide financial capital to the firm.