Which statement is true?

Which statement is true?

• A. Objectives are the steps that must be taken in order to attain goals.
• B. A net capital ratio greater than one indicates the business is solvent.
• C. Comparative analysis is comparing ratios over time for the same farm business.
• D. Short term goals may require more than one year to achieve.

Answer: (A)

In planning, goals describe the broad outcomes you want for the farm business, while objectives break those outcomes into concrete, doable steps—detailing what to do, by when, and how you’ll measure progress. That makes objectives actionable and measurable, and it helps guide how you allocate resources and monitor performance. Because objectives translate a goal into specific tasks with deadlines and criteria, the statement that objectives are the steps that must be taken to attain goals is the best fit. Regarding the other ideas: a net capital ratio over one can suggest positive net capital, but solvency depends on how the ratio is defined and the broader financial picture. Comparative analysis usually means benchmarking against other farms or industry standards rather than just looking at a single farm’s ratios over time—that role is more about trend or horizontal analysis. And short-term goals are understood to be achievable within one year, so claiming they may take more than a year conflicts with how short-term is defined.

In planning, goals describe the broad outcomes you want for the farm business, while objectives break those outcomes into concrete, doable steps—detailing what to do, by when, and how you’ll measure progress. That makes objectives actionable and measurable, and it helps guide how you allocate resources and monitor performance. Because objectives translate a goal into specific tasks with deadlines and criteria, the statement that objectives are the steps that must be taken to attain goals is the best fit.

Regarding the other ideas: a net capital ratio over one can suggest positive net capital, but solvency depends on how the ratio is defined and the broader financial picture. Comparative analysis usually means benchmarking against other farms or industry standards rather than just looking at a single farm’s ratios over time—that role is more about trend or horizontal analysis. And short-term goals are understood to be achievable within one year, so claiming they may take more than a year conflicts with how short-term is defined.