Final answer:
The statement in question is TRUE as strategy and goals statements are fundamental elements in defining a firm's purpose and developing a plan for achievement. Strategy provides the blueprint for action, while clear goals facilitate step-by-step planning and investor confidence.
Step-by-step explanation:
The statement that strategy and goals statements together are the first building blocks in defining why a firm exists and in developing a plan to accomplish what the firm wants to accomplish is TRUE. Strategy forms the crux of identifying key issues and developing methods to tackle them, setting the stage for any problem-solving activity. When a firm articulates its goals, it clarifies its ambitions and assesses how realistic and achievable they are, allowing for the creation of a step-by-step plan to reach them.
By establishing a clear strategy, a firm lays out a blueprint that directs its actions towards profitability and growth. This can inspire confidence in outside investors, such as bondholders and shareholders, which is particularly important once the firm has become established and detailed personal knowledge of the managers by the investors is no longer a necessity. The availability of information about the company's products, revenue, and profits makes it easier for these external parties to invest capital.
Furthermore, listing the individual steps needed to accomplish goals not only ensures clarity but also maintains motivation, driving the firm towards its desired career target. This is integral to keeping the entire organization aligned and focused on the tasks at hand. Hence, strategy and goal statements are indeed foundational elements in a firm's pursuit of success.