The deed requires approval of all partners to open a new branch. This relates to which decision?

Correct answer: Important management decision

The governing concept is the distinction between a major management decision and a routine operating activity. Opening a new branch generally requires substantial capital, premises, employees, marketing, administration, and continuing operating expenditure. It may also expose the firm to significant commercial risk and alter its scale of operations. Therefore a deed may require approval of all partners before this expansion is undertaken. A daily minor purchase is a routine transaction, while interest on drawings and salary accounting are calculations or accounting treatments rather than expansion decisions. The requirement for consent is thus connected with an important management decision. Hence option A is correct.