Identify a Key Difference Between Managerial Decisions and Operational Decisions

question 15

Multiple Choice

Identify a key difference between managerial decisions and operational decisions.

• A)Managerial decisions concern the allocation of resources, whereas operational decisions concern day-to-day activities.
• B)Managerial decisions are corporate decisions, whereas operational decisions concern the utilization of resources.
• C)Managerial decisions deal with the allocation of resources, whereas operational decisions concern broad-scope, organizational issues.
• D)Operational decisions have broad scope, whereas the scope of managerial decisions is limited to day-to-day activities.

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Definitions:

Underconsumption

A situation where consumption is lower than the level that would provide full employment in the economy, often leading to economic downturns.

Income Disparity

The uneven distribution of income across different groups within a society.

First Mover

A company that gains a competitive advantage by being the first to market with a new product or service.

Theory of Absolute Advantage

An economic theory proposed by Adam Smith, which suggests that countries should specialize in the production of goods for which they have an absolute advantage.