Which type of decisions only impact the operational activities of a business?

The focus on short-term decisions as the correct answer highlights their direct influence on the day-to-day operations of a business. Short-term decisions are geared towards immediate outcomes and are often reactive, addressing current operational challenges or optimizing current resource use. This can include decisions regarding staffing for a busy season, scheduling production runs, or managing inventory levels, all of which are crucial for maintaining efficient operational processes and meeting immediate customer demands.

In contrast, strategic decisions involve long-term planning and direction-setting for the entire organization. They typically encompass factors such as market positioning, overall growth strategies, and investment decisions that shape the future of the business. Tactical decisions, while they can be somewhat short-term, still bridge the gap between strategic objectives and day-to-day operations, often impacting the medium-term direction as well. Long-term decisions typically concern substantial investments and extensive planning efforts that span years, focusing on goals such as expansion into new markets or large-scale projects.

Overall, short-term decisions distinctly reflect the operational nature of immediate business activities.