Question 1

General guidance to listen to customer complaints respectfully comes under which plan?

Accepted Answer

Policy A policy provides broad guidance for thinking and decision-making, so option A is correct. Telling employees to listen respectfully to customer complaints establishes a general approach to handling a class of situations, but it does not prescribe every step, a particular date, or a precise financial amount. A rule is usually a specific and compulsory statement, such as “complaints must be recorded within 24 hours.” A budget expresses a plan in numerical or monetary terms and is unrelated to this guidance. A programme combines several activities, procedures, responsibilities and a time schedule to achieve an objective. Because the statement guides employee behaviour while leaving room for judgement in individual cases, it is best classified as a policy.

Question 2

A company's decision that support will be given for poor service relates to which plan?

Accepted Answer

Policy The governing concept is that a policy provides a general guideline for handling recurring decisions and situations. The company’s decision to support customers when service is poor establishes the broad direction employees should follow in customer-service cases. Therefore, option C, Policy, is correct. A budget would quantify the money reserved for compensation or support. A procedure would specify the ordered steps, such as recording the complaint, investigating it, and issuing a remedy. A programme would coordinate several activities, resources, and schedules for a defined objective. The question gives a guiding decision principle but does not provide an amount, sequence, or complete activity plan, so it is best classified as a policy.

Question 3

In which plan does the decision-maker have some scope of judgement?

Accepted Answer

Policy The correct answer is B, Policy. A policy is a general guideline that guides decisions while allowing the decision-maker to use judgement according to the circumstances. It sets boundaries and direction but does not normally prescribe one compulsory response in every case. A rule is more rigid because it states what must or must not be done. A procedure specifies the sequence of steps for carrying out an activity, leaving little freedom about the order. A budget is a numerical plan of expected income, expenditure or other quantities, not primarily a decision guideline. The key clue is “some scope of judgement,” which is the defining practical feature of a policy. Therefore, policy is correct.

Question 4

A company instruction that suppliers will be selected on the basis of quality is like which plan?

Accepted Answer

Policy The correct answer is Policy. A policy is a general guideline that helps managers and employees make consistent decisions in recurring situations. The instruction that suppliers will be selected on the basis of quality establishes a broad criterion for procurement decisions, but it does not list every step of supplier selection. A budget would quantify expected purchasing expenditure, a procedure would specify the ordered stages for evaluating and appointing a supplier, and a method would describe the technique used in a particular task. Since the statement provides a guiding basis for many future selection decisions rather than a single detailed sequence, it is best classified as a policy.

Question 5

A company's guidance that complaints will be resolved transparently is related to which plan?

Accepted Answer

Policy The correct answer is Policy because the statement gives a general principle for handling customer complaints. Transparency guides employees and managers in many different cases, while still allowing them to decide the exact action suitable to each complaint. A rule would be narrower and would normally prescribe or prohibit a specific action without discretion. A budget would show the money or resources allocated for complaint handling, and a method would describe the particular technique used to resolve an individual complaint. The phrase resolved transparently expresses an organisational value and decision guideline, not a numerical plan or a fixed sequence of steps. Therefore, it is a policy.

Question 6

What is the main meaning of policy in planning?

Accepted Answer

General guidance for decision-making A policy provides broad guidelines for decision-making in an organisation and helps employees choose an appropriate course of action in similar situations. Therefore, option A is correct. A specific method of doing work is a procedure, whereas a numerical estimate of expenditure is a budget. Exam tip: Link phrases such as ‘general guidance’ and ‘direction for decisions’ with policy.

Question 7

A company said customer complaints will be heard fairly. This is an example of which plan?

Accepted Answer

Policy Fair hearing gives decision guidance so it is policy. In exams identify fair dealing as policy.

Question 8

Policy helps managers in which work?

Accepted Answer

Taking decisions Correct answer: C, taking decisions. A policy is a general guideline or principle that helps managers decide how to handle recurring situations. It provides boundaries and direction while usually allowing some judgement; it is not necessarily a detailed step-by-step instruction. For example, a customer-service policy may guide a manager when deciding whether a return or refund should be accepted. Cleaning a machine may be an operational task, but it is not what the definition of policy mainly tests. Closing a door and tearing a receipt are isolated physical actions and do not describe managerial decision guidance. A policy helps different managers make reasonably consistent decisions in similar circumstances. Memory cue: policy guides choices; a procedure explains steps; a rule gives a definite command.

Question 9

Which option is the correct example of policy?

Accepted Answer

Merit and experience will be valued in recruitment Giving importance to merit and experience in recruitment decisions is policy. In exams treat criteria based guidance as policy.

Question 10

What is the main difference between policy and rule?

Accepted Answer

Policy gives guidance and rule gives strict command The direct answer is A: policy gives guidance, while a rule gives a strict command. A policy sets a general direction and leaves managers some reasonable discretion when applying it to different situations. A rule is more definite: it normally states what must be done or must not be done, with little or no choice. The reasoning is simple: if an instruction guides judgement, it is policy-like; if it demands exact compliance, it is rule-like. Option A is correct because it captures this central distinction. Option B is wrong: policy is not simply a statement of expense, and a rule does not normally state a target. Option C is wrong because technique and procedure are different planning terms; they do not define the main policy-rule difference. Option D is wrong because budget and programme are also separate types of plans. Do not confuse flexibility with absence of guidance: a policy guides decisions but is less rigid than a rule. Memory cue: policy guides; rule commands.

Question 11

A company said quality will be given priority while choosing suppliers. This relates to which plan?

Accepted Answer

Policy Quality priority for supplier selection is a policy. In exams understand priority guideline as policy.

Question 12

What type of plan is policy considered?

Accepted Answer

Standing plan Policy can be used repeatedly in decisions so it is a standing plan. In exams treat repeated guidance as standing plan.

Question 13

If a company says performance will be important in employee promotion what is it?

Accepted Answer

Policy It is general guidance for promotion decisions. In exams connect performance based promotion with policy.

Question 14

What does policy bring in decisions?

Accepted Answer

Uniformity The direct answer is A: uniformity. A policy is a general guideline that helps people make decisions in recurring or similar situations. It does not usually give every tiny step; instead, it provides a consistent direction while allowing some judgement. For example, a recruitment policy may require fair consideration of merit and experience. Similar cases are then handled according to the same broad standard, producing uniformity and reducing personal bias. Option A is correct. Option B is wrong because policy limits arbitrary decisions rather than encouraging complete arbitrariness. Option C is wrong because a clear policy normally reduces confusion instead of creating new confusion every time. Option D is wrong because policy is not merely an expense; it guides decisions and may improve control. Memory cue: policy gives a common direction in similar cases.

Question 15

Which statement identifies policy?

Accepted Answer

Every customer will be answered respectfully Guidance of respectful behaviour with customers is policy. In exams understand behaviour guideline as policy.

Question 16

For what does policy set limits and direction?

Accepted Answer

Decisions Policy sets limits and direction for decision-making. In exams connect limits of decisions with policy.

Question 17

A company's credit policy will relate to what?

Accepted Answer

Which customer should receive credit The direct answer is A: a company's credit policy relates to deciding which customers should receive credit. A policy is a general guideline that helps managers take similar decisions in similar situations. Credit means allowing a customer to buy now and pay later, so the company must decide who is trustworthy, how much credit may be given, and under what conditions. Option A is correct because it directly concerns granting credit to customers. Option B is wrong because cleaning a machine is an operating or maintenance procedure, not a credit decision. Option C is wrong because choosing an office colour is a decoration decision. Option D is wrong because deciding which gate stays closed concerns security or administration. The key chain is: credit means delayed payment, delayed payment needs a customer decision, and guidance for that decision is credit policy. Memory cue: connect the word “credit” with “customer payment later,” not with machines, colours, or gates.

Question 18

Which option is a procedure instead of policy?

Accepted Answer

First accepting the application, then verifying it, and finally approving it Option B is correct. A procedure specifies the fixed sequence of steps to perform a task. It states that an application is accepted first, verified next, and approved finally; hence, it is a procedure. In contrast, A, C, and D are broad guidelines for decision-making, so they are policies. Exam tip: Words such as ‘first’, ‘then’, and ‘finally’ usually indicate a procedure.

Question 19

Which option is a rule instead of policy?

Accepted Answer

Entry without helmet prohibited A rule is a specific, compulsory direction that must be followed. “Entry without helmet prohibited” states a direct prohibition, so it is a rule. In contrast, giving importance to customer convenience, experience, or complaints provides general guidance for decisions; these are policies. Exam tip: words such as ‘prohibited’, ‘compulsory’, and ‘must not’ usually indicate a rule.

Question 20

Why is policy considered flexible?

Accepted Answer

Because it may leave some discretion in decisions Policy gives general guidance so discretion is possible. In exams treat flexibility as a policy feature.

Question 21

A company said local suppliers will be given fair opportunity in purchasing. What is this?

Accepted Answer

Policy The statement sets a broad guiding principle for purchasing decisions—giving local suppliers a fair opportunity—so it is a policy. A rule is a specific compulsory instruction, whereas a policy guides managers while making decisions. Exam tip: Identify broad decision-guiding statements as policies.

Question 22

Policy answers what type of question?

Accepted Answer

In what direction a decision should be taken The direct answer is A: policy answers the question, “In what direction should a decision be taken?” A policy is a broad guide for repeated decisions. It does not usually give every tiny step; instead, it sets the acceptable direction and boundaries. The reasoning is: managers face a situation; the policy gives the general approach; the manager uses judgement within that approach; therefore policy answers the direction of decision making. Option A is correct. Option B is wrong because chair colour is a specific factual or purchasing detail, not the general direction of organisational decisions. Option C is wrong because the number of pens is a count, not a policy question. Option D is wrong because an open door is an immediate factual observation, not a guiding principle. These choices may require information, an inventory check or an operating instruction, but they are not what the concept of policy mainly answers. Exam cue: policy tells “which way to decide,” not every small fact.

Question 23

Which option is an example of refund policy?

Accepted Answer

Customer bill and product condition will be considered while giving refund Considering bill and product condition is refund decision guidance. In exams treat refund criteria as policy.

Question 24

What can policy reduce in an organisation?

Accepted Answer

Decision-related confusion The direct answer is Option A: policy can reduce decision-related confusion. A policy is a general guideline that helps people make decisions in recurring situations. It gives a broad direction while still allowing managers and employees some judgment. For example, a customer-service policy may explain when a refund can be approved, or a recruitment policy may guide how candidates should be treated. The reasoning is: repeated situations often create uncertainty; a policy provides a common guideline; employees understand the permitted direction; therefore different people are less likely to make contradictory decisions and confusion decreases. Option A is correct. Option B is wrong because a policy does not remove or reduce all organisational resources; resources such as money, people, equipment, and time are still needed. Option C is wrong because a policy does not eliminate all organisational goals; it helps actions support those goals. Option D is wrong because a policy cannot remove all customers and that would not normally be its purpose. A policy is not the same as a rigid procedure: a procedure gives exact steps, while a policy gives guiding principles or boundaries. Memory cue: policy means a common guide for repeated decisions, so it brings clarity and reduces confusion.

Question 25

Employee welfare policy may relate to what?

Accepted Answer

Decisions about employee facility and safety Decision guidance on employee welfare is policy. In exams connect welfare decisions with policy.

Policy

Practice questions

01 General guidance to listen to customer complaints respectfully comes under which plan?

02 A company's decision that support will be given for poor service relates to which plan?

03 In which plan does the decision-maker have some scope of judgement?

04 A company instruction that suppliers will be selected on the basis of quality is like which plan?

05 A company's guidance that complaints will be resolved transparently is related to which plan?

06 What is the main meaning of policy in planning?

07 A company said customer complaints will be heard fairly. This is an example of which plan?

08 Policy helps managers in which work?

09 Which option is the correct example of policy?

10 What is the main difference between policy and rule?

11 A company said quality will be given priority while choosing suppliers. This relates to which plan?

12 What type of plan is policy considered?

13 If a company says performance will be important in employee promotion what is it?

14 What does policy bring in decisions?

15 Which statement identifies policy?

16 For what does policy set limits and direction?

17 A company's credit policy will relate to what?

18 Which option is a procedure instead of policy?

19 Which option is a rule instead of policy?

20 Why is policy considered flexible?

21 A company said local suppliers will be given fair opportunity in purchasing. What is this?

22 Policy answers what type of question?

23 Which option is an example of refund policy?

24 What can policy reduce in an organisation?

25 Employee welfare policy may relate to what?

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