Question : Statement 1: Lower-level management has the authority to make strategic decisions.
Statement 2: Lower-level management implements the decisions made by top-level management.
Option 1: Both statements are true
Option 2: Both are incorrect
Option 3: Statement 1 is true, and Statement 2 is false.
Option 4: Statement 1 is false, and Statement 2 is true.
Correct Answer: Statement 1 is false, and Statement 2 is true.
Solution : The correct answer is (d) Statement 1 is false, and Statement 2 is true.
Statement 1 is false because lower-level management typically does not have the authority to make strategic decisions. Strategic decisions are usually made by top-level management, which is responsible for setting the overall direction and long-term objectives of the organization.
Statement 2 is true because lower-level management often implements the decisions made by top-level management. They are responsible for carrying out the day-to-day operational activities based on the strategic decisions and plans formulated by top-level management.
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