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CMA Foundation · Fundamentals of Business Economics and Management · Introduction to Management

In a manufacturing company, the Board of Directors and the Managing Director decide to enter a new export market and set the overall objectives for the next five years. At which level of management is this activity primarily performed?

Top-level management performs this activity. Deciding to enter a new export market and fixing five-year objectives are strategic, long-term decisions, which belong to the Board and the Managing Director. Middle managers implement such policies through departmental plans, and supervisors manage day-to-day work.

  1. ATop-level managementCorrect
  2. BMiddle-level management
  3. CSupervisory (first-line) management
  4. DOperative level

Explanation

Setting overall objectives, long-term policies and strategic direction is the main function of top management, which comprises the Board and the chief executives. Middle management translates these policies into departmental plans, so it is not the main level for this decision.

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