Differentiate Between Operational Plans and Strategic Plans

question 47

Multiple Choice

Differentiate between operational plans and strategic plans.

• A) Operational plans are made by top managers, while strategic plans are made by middle managers and supervisors.
• B) Operational plans are more specific and focus on a shorter time frame, while strategic plans focus on long-term goals for the organization.
• C) Operational plans develop objectives for the organization as a whole, while strategic plans develop objectives for a division, department, or work group.
• D) Operational plans specify the quality of goods or services the organization is to provide, while strategic plans specify how to achieve organizational goals.

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Definitions:

Shareholders' Equity

The net value of a company, calculated by subtracting total liabilities from total assets, which represents the owners' claim after debts have been settled.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue, also known as "net profit" or "net earnings."

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's earnings paid out to shareholders in the form of dividends.

Capital Gains

Capital gains arise from the sale of an asset at a price higher than its purchase price, resulting in a profit.