Identify a Key Difference Between Managerial Decisions and Operational Decisions

question 47

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.
• E) Operational decisions have narrow scope, whereas the scope of managerial decisions is limited to day-to-day activities.

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Definitions:

Investee

The entity in which an investor holds an interest, often evidenced through ownership of securities or equity.

Voting Common Stock

A class of stock that grants the holder the right to vote on corporate matters at shareholders' meetings.

Goodwill

An invisible asset that emerges when purchasing a business for a price that is above the fair valuation of its net identifiable assets.

Net Loss

A financial situation where a company's total expenses exceed its total revenues, resulting in a negative profit.