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Operating decisions primarily deal with ________.*

A) the best use of scarce resources
B) how to obtain funds to acquire resources
C) acquiring equipment and buildings
D) satisfying stockholders
Objective 6.1"

User Thomas Lee
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1 Answer

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Final answer:

Operating decisions in business are focused on the best use of scarce resources to generate profits and are not directly related to acquiring funds for resources. The correct option is A.

Step-by-step explanation:

Operating decisions in business primarily deal with the best use of scarce resources. These decisions revolve around how to most effectively use the resources at the company's disposal to generate profits. This includes daily operations such as production schedules, inventory management, and human resources allocation.

It is not directly related to the methods of acquiring funds, which would involve decisions about financial capital sources like early-stage investors, reinvestment of profits, borrowing from banks or bonds, and selling stock.

Such financial decisions determine how firms pay for the long-term assets they need, like equipment and buildings, and how they satisfy stockholders. The correct option is A.

User Khanh Nguyen
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