Under SR 11-7 guidance on model risk management, what is the key distinction between a 'model limitation' and a 'model error'?

B is correct because SR 11-7 distinguishes between inherent limitations (known constraints acknowledged in the model design, such as scope boundaries, simplifying assumptions, or data constraints) that are disclosed and managed, and model errors (unintended flaws in logic, implementation, or data that cause the model to produce incorrect outputs). Limitations are not bugs; they are accepted constraints. Errors require correction. This distinction is fundamental to model risk governance and dictates different response actions. A conflates documentation and reporting requirements. C incorrectly restricts errors to coding mistakes and limitations to data quality. D imposes specific timelines not defined in SR 11-7.