Question 1

Which option gives policy and rule in correct order?

Accepted Answer

Giving priority to customer interest and entry without pass prohibited The first is general guidance and the second is strict order. In exams guidance is policy and prohibition is rule.

Question 2

Which option gives the correct difference between policy and objective?

Accepted Answer

Policy guides decision and objective states result Policy tells how to decide and objective states what to achieve. In exams keep guidance and result separate.

Question 3

A school said both financial condition and merit will be considered while giving scholarship. This is an example of what?

Accepted Answer

Policy Stating criteria for scholarship decisions is policy. In exams identify decision criteria as policy.

Question 4

Why can policy be called a standing plan?

Accepted Answer

Because it guides decisions made repeatedly in similar situations A policy is a general guideline that helps managers make decisions in similar or recurring situations. Since it can be used continuously over time, it is called a standing plan. Option B refers to a plan for a one-time event, not a standing plan. Exam tip: Link policies, rules, and procedures with recurring activities and standing plans.

Question 5

Which option is a customer service policy?

Accepted Answer

Guidance to solve customer problem with respect and speed Broad guidance for handling customer problems is policy. In exams treat service attitude guidance as policy.

Question 6

Policy is not related to what?

Accepted Answer

A strict punishment order for every situation Correct answer: C, a strict punishment order for every situation. A policy is a broad guideline or general principle that helps people make decisions consistently. It gives direction but normally permits judgement according to the facts of a case. Guidance for decisions is therefore directly related to policy. A general principle is also a characteristic of policy because it expresses the broad approach an organisation wants to follow. By guiding similar decisions, policy can bring reasonable uniformity across departments. In contrast, an order that imposes a fixed punishment in every situation is rigid and specific. It resembles a rule or command rather than a flexible policy. A policy may state the approach to misconduct, but the exact punishment need not be identical in every circumstance. Memory cue: policy guides with principles; a rule commands with certainty.

Question 7

If a company says brand image will be protected in marketing decisions what is this?

Accepted Answer

Policy It is general guidance for marketing decisions. In exams connect brand image guideline with policy.

Question 8

What does policy allow?

Accepted Answer

Limited discretion according to situation Policy gives broad guidance so a manager can use limited discretion. In exams understand discretion as policy feature.

Question 9

Which option is an example of sales policy?

Accepted Answer

Customer payment history will be checked while giving credit sale Checking payment history is sales decision guidance. In exams treat credit sale guidance as policy.

Question 10

What is the correct difference between policy and method?

Accepted Answer

Policy is decision guidance and method is work technique Policy gives decision direction and method states task technique. In exams keep guidance and technique separate.

Question 11

Which option has the most suitable policy language?

Accepted Answer

Courtesy will be maintained while dealing with customers Broad guidance about courtesy is policy. In exams understand behaviour related general direction as policy.

Question 12

With the help of policy how can decisions of different managers become?

Accepted Answer

More similar and consistent A policy provides general guidelines for decision-making. Therefore, when different managers face similar situations, their decisions are likely to be more similar and consistent. Option B is incorrect because policies increase uniformity rather than making decisions unrelated. Exam tip: Remember that a policy is a general guide for managerial decisions.

Question 13

Which option is a recruitment policy?

Accepted Answer

Merit experience and honesty will be valued in recruitment The direct answer is A: merit, experience, and honesty will be valued in recruitment. A policy is a broad statement that guides decisions and establishes criteria for repeated situations. Option A states the principles or standards that should guide recruitment decisions, so it is a recruitment policy. It does not prescribe one exact sequence of actions; it explains what qualities the organisation values. Option B is a procedure because it gives a sequence: first take the resume and then conduct a test. Option C is a specific security or administrative rule for entering an interview room. Option D is a technique or method for performing a typing test, not a recruitment guideline. Therefore A is correct. Memory cue: policy tells the standard or direction; procedure tells the steps.

Question 14

A company said the customer's side will be carefully understood first in complaints. What is this?

Accepted Answer

Policy Broad decision guidance of hearing customer side is policy. In exams treat complaint handling principle as policy.

Question 15

What does policy not completely remove?

Accepted Answer

Managerial discretion Policy gives guidance but does not completely remove discretion. In exams understand policy as a flexible guide.

Question 16

Which option is a purchase policy?

Accepted Answer

Reliable suppliers will be prioritised in purchasing Prioritising reliable suppliers is purchase decision guidance. In exams treat supplier priority as policy.

Question 17

What is the simple difference between policy and strategy?

Accepted Answer

Policy is decision guide and strategy is broad action direction Policy guides decisions while strategy states a broad action route. In exams keep guideline and broad plan separate.

Question 18

If a statement says environmental interests will be considered while taking decisions what is it?

Accepted Answer

Policy It gives environmental guidance for decisions. In exams treat consider while decision as policy clue.

Question 19

Which option states the purpose of policy most correctly?

Accepted Answer

To give direction and limits to decisions Policy makes decisions guided and consistent. In exams treat direction and limits as the purpose of policy.

Question 20

Which option gives policy and procedure in correct order?

Accepted Answer

Giving priority to customer interest and first registering complaint then checking The first is guidance and the second is sequence of steps. In exams identify policy and procedure separately.

Question 21

A bank said repayment capacity will be given importance while giving loan. This is an example of what?

Accepted Answer

Policy Giving importance to repayment capacity in loan decision is policy. In exams understand loan criteria as policy.

Question 22

Which statement does not have an element of policy?

Accepted Answer

Exact steps for operating a machine A policy provides broad guidance for decision-making. It allows managers some discretion within stated limits and promotes uniformity in decisions made in similar situations. Exact steps for operating a machine are not a policy; they describe a procedure or method because they prescribe a fixed sequence of action. Exam tip: look for guidance and discretion in a policy; fixed steps indicate a procedure or method.

Question 23

Which option can be an employee discipline policy?

Accepted Answer

Fair inquiry will be conducted in discipline matters The direct answer is A: “Fair inquiry will be conducted in discipline matters” can be an employee discipline policy. A policy gives general guidance for handling repeated situations while allowing fair judgement. This statement establishes a consistent principle: when discipline is needed, the organisation will investigate fairly before deciding. Step one is to identify the subject, employee discipline; step two is to see whether the statement gives a general guide; step three is to check whether it allows proper examination rather than prescribing one automatic punishment. Option A passes all three tests. Option B is a rigid automatic punishment and is closer to a rule or harsh fixed order, not balanced policy guidance. Option C is an entry procedure or rule, because it tells employees to take a gate pass before entering. Option D is only a method concerning use of a clock machine and is not a complete discipline policy. Memory cue: fair, general guidance for repeated decisions often signals policy.

Question 24

Why does arbitrariness reduce in decisions due to policy?

Accepted Answer

Because policy gives prior guidance When prior guideline exists decisions do not remain arbitrary. In exams connect policy with consistency.

Question 25

A company said safety will not be ignored in new product decisions. This indicates which plan?

Accepted Answer

Policy Safety guidance in product decisions is policy. In exams understand safety consideration as policy.

Policy

Practice questions

01 Which option gives policy and rule in correct order?

02 Which option gives the correct difference between policy and objective?

03 A school said both financial condition and merit will be considered while giving scholarship. This is an example of what?

04 Why can policy be called a standing plan?

05 Which option is a customer service policy?

06 Policy is not related to what?

07 If a company says brand image will be protected in marketing decisions what is this?

08 What does policy allow?

09 Which option is an example of sales policy?

10 What is the correct difference between policy and method?

11 Which option has the most suitable policy language?

12 With the help of policy how can decisions of different managers become?

13 Which option is a recruitment policy?

14 A company said the customer's side will be carefully understood first in complaints. What is this?

15 What does policy not completely remove?

16 Which option is a purchase policy?

17 What is the simple difference between policy and strategy?

18 If a statement says environmental interests will be considered while taking decisions what is it?

19 Which option states the purpose of policy most correctly?

20 Which option gives policy and procedure in correct order?

21 A bank said repayment capacity will be given importance while giving loan. This is an example of what?

22 Which statement does not have an element of policy?

23 Which option can be an employee discipline policy?

24 Why does arbitrariness reduce in decisions due to policy?

25 A company said safety will not be ignored in new product decisions. This indicates which plan?

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