CA Inter P6 · Chapter 10 · Question 9 of 10
Which of the following is a characteristic of strategic decisions, as distinct from routine operating decisions?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) They have long-term effects, commit significant resources and are mainly taken by top management
Explanation
Strategic decisions are non-routine, future-oriented and affect the whole organisation. They involve large commitments of resources that are hard to reverse, and they are usually taken or approved by top management. Repetitive, departmental and easily reversible decisions are operational.
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