Correct Answer: The assertion is incorrect, but the reason is correct.

Solution : The correct answer is (d) The assertion is incorrect, but the reason is correct.

The assertion that lower-level management is responsible for creating long-term strategic plans is incorrect. Strategic planning is typically the responsibility of senior leadership, such as the CEO, executive team, and board of directors. Lower-level management may be involved in the planning process, but they are not primarily responsible for creating the strategic plan.

The reason given for the assertion, that lower-level management has a better understanding of the organization's day-to-day operations, is correct. However, this does not mean that they are better equipped to create long-term strategic plans. Strategic planning requires a broader perspective, including consideration of the organization's mission, vision, values, and external environment. Senior leadership is better positioned to take this broader perspective and to develop a strategic plan that will guide the organization over the long term.