Which of the following statements about business plans and operational plans is true?

The statement that a business plan should build on and refine the operational plan is true because business plans typically set out the long-term strategic goals and vision for an organization, while operational plans detail the specific actions and processes necessary to achieve those goals in the short term. The operational plan can be seen as a subset of the broader business plan, providing the practical framework and steps needed to turn the overarching strategy into actionable tasks.

The relationship between the two is complementary; a business plan provides the direction and objectives, and the operational plan is developed to align with and support those objectives. By refining the operational plan based on insights from the business plan, organizations can ensure that their day-to-day operations are effectively contributing to the long-term ambitions laid out in the business plan. This integration is essential for maintaining coherence in strategy and execution, enabling organizations to adapt and respond to changes in the market or their operational environment.