The question asks to identify the incorrect statement concerning management levels. Let's evaluate each option:
(A) Operational (lower) level management is responsible for daily operations, including safety standards and their enforcement. This statement is correct.
(B) Middle-level managers serve as a link between top and operational levels. They are responsible for ensuring adequate departmental staffing. This statement is correct.
(C) This statement is incorrect. The Chief Executive Officer (CEO), a top-level executive, is tasked with establishing the company's vision, direction, and overall strategic decisions, not with overseeing the direct activities of first-line managers. The direct supervision of operational tasks falls under the purview of middle and lower-level managers, not top-level executives.
(D) Top-level managers are indeed accountable for the overall performance of the business and its societal impact. This statement is correct.
Therefore, statement (C) incorrectly assigns the responsibilities of lower-level management to the CEO, making it the incorrect statement.
Final Answer: (C) The Chief Executive Officer, positioned at the top management level, is responsible for all activities of first-line managers.