Which of the Following Is a Defining Characteristic of Operational

question 68

Multiple Choice

Which of the following is a defining characteristic of operational planning?

• A) Operational planning is ideally done by the CEO and other top managers.
• B) The scope of operational planning includes stating objectives for the organization as a whole.
• C) Typically operational planning is done when the original plan fails to materialize.
• D) Operational planning involves short-term goals of one year or less.

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Definitions:

Total Utility

The overall satisfaction or happiness a consumer derives from consuming a certain quantity of a good or service.

Marginal Utility

is the added satisfaction or benefit a consumer gets from consuming one additional unit of a good or service.

Utility-Maximizing Rule

The principle that to obtain the greatest total utility, a consumer should allocate money income so that the last dollar spent on each good or service yields the same marginal utility (MU). For two goods X and Y, with prices Px and Py, total utility will be maximized by purchasing the amounts of X and Y such that MUx/Px = MUy/Py for the last dollar spent on each good.

Budget Constraint

The limitations on the consumption choices of an individual or family due to limited financial resources.