What Is a Tactical Decision

question 100

Multiple Choice

What is a tactical decision?

• A)an often small-scale action that serves a larger purpose
• B)a small decision with little impact on the business
• C)a long-run decision that has an immediate impact
• D)a decision made by a lower-level manager

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Definitions:

Equity Risk

The risk of loss due to a drop in the value of stocks or equity securities.

Operating Activities

Activities directly related to the day-to-day operations of a business, such as sales, purchasing inventory, and paying salaries.

Static Theory of Capital Structure

A concept in corporate finance that suggests a firm can find an optimal capital structure, balancing the benefits and costs of debt and equity financing.

M&M Value

Refers to Modigliani and Miller's theory on the irrelevance of capital structure for determining a firm's market value under certain conditions.