Which of the Following Questions Is an Example of an Operational

question 39

Multiple Choice

Which of the following questions is an example of an operational decision?

• A) Should we have another manufacturing center?
• B) How many square feet of warehouse space do we need for the coming year?
• C) How many engineers should we assign to the project?
• D) How many widgets should we order from the vendor?

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Definitions:

Fair Market Value

The price that property would sell for on the open market, considering both the seller and buyer are acting knowledgeably and without undue pressure.

End Of Lease Term

The conclusion of a leasing agreement, at which point the lessee must return the asset or possibly extend the lease.

CRA

The Canada Revenue Agency, which is responsible for the administration of tax laws for the Canadian government as well as various social and economic benefit and incentive programs delivered through the tax system.

Operating Lease

A lease agreement allowing the use of an asset without ownership, typically with shorter terms, where the lessor retains the risks and benefits of ownership.