Question 1

A company says that in bonus decision not only sales but customer complaint record will also be considered. What is this?

Accepted Answer

Policy It gives balanced performance criteria to bonus decisions. In exams treat reward criteria as policy.

Question 2

An institution says that education health and skill development will be prioritised in social donations. Which type of plan is this?

Accepted Answer

Policy It gives social priority direction to donation decisions. In exams treat social spending guidance as policy.

Question 3

What does guided discretion in policy mean?

Accepted Answer

Managers take decisions within limits and principles Policy does not give full freedom but gives limited discretion. In exams remember limits plus judgement.

Question 4

An office says that urgency of work and employee availability will both be considered in overtime approval. What is this?

Accepted Answer

Policy Direct answer: Option B, Policy. The office is giving guidance for deciding whether overtime should be approved. It will consider two relevant factors—urgency of the work and employee availability—rather than applying one automatic command. Reasoning: an overtime request is received; the urgency of the work is assessed; available staff are considered; then approval is decided using these factors. Option A, Budget, is wrong because a budget is a quantified plan of expected income, expenditure or resource use; the statement does not give amounts. Option B is correct because it gives decision criteria while allowing judgment. Option C, Method, is wrong because a method explains how to perform a task, such as a particular way of completing work, not how to judge an approval request. Option D, Programme, is wrong because a programme is a coordinated plan of activities, usually with tasks, sequence, responsibility or time. This statement is only a guiding standard for decisions. Memory cue: relevant factors used to approve or reject requests usually indicate policy.

Question 5

Which option correctly identifies both policy and strategy?

Accepted Answer

Fairness in customer hearing is policy and premium service to compete with cheap rival is strategy Fairness is decision guidance and premium service is competitive direction. In exams keep guidance and market route separate.

Question 6

A company says that in product recall customer safety will be kept above profit loss. This is an example of which plan?

Accepted Answer

Policy It gives value based priority in product recall decisions. In exams identify safety first guidance as policy.

Question 7

When does policy convert organisational values into daily decisions?

Accepted Answer

When it makes values like fairness transparency and safety decision criteria Value based policy gives managers similar direction. In exams remember the values to decisions role.

Question 8

A company says that in conflict of interest cases employee must disclose personal interest first and may be kept away from the decision. What is this?

Accepted Answer

Policy It gives ethical direction to conflict of interest decisions. In exams treat ethics guidance as policy.

Question 9

Which statement shows a clear objective rather than policy?

Accepted Answer

Refund disputes must be reduced by 18 percent in six months The direct answer is B: reducing refund disputes by 18 percent in six months is a clear objective. An objective states a desired result, often in measurable and time-bound form. Option A is a policy because it gives a broad behavioural guideline—show empathy—without a precise numerical result or deadline. Option B is correct because it specifies what must change, by how much, and by when: disputes must fall by 18 percent within six months. Option C is a policy because it guides purchasing decisions by giving preference to certified sources; it does not state a quantified target. Option D is a policy because hearing both sides is a general principle for handling employee matters, not a measured outcome. Exam cue: a percentage plus a time period usually signals a measurable objective, while words such as “priority,” “will be valued,” or “both sides” usually express policy guidance. The supplied answer is accurate.

Question 10

A company says that while deciding customer compensation responsibility for fault and customer's actual loss will both be considered. This relates to which plan?

Accepted Answer

Policy It gives fair criteria to compensation decisions. In exams understand compensation guidance as policy.

Question 11

Which option correctly identifies both policy and programme?

Accepted Answer

Quick hearing in safety complaints is policy and training poster inspection activities of safety week are programme Quick hearing is decision guidance and activities package is programme. In exams keep guidance and activity set separate.

Question 12

A school says that in exam fee assistance real need previous attendance and available fund will all be considered. What is this?

Accepted Answer

Policy It gives criteria for fee assistance decisions. In exams treat aid decision guidance as policy.

Question 13

In which situation does policy improve quality of decisions?

Accepted Answer

When it clarifies relevant criteria and values in advance Clear policy makes decisions consistent and reasoned. In exams treat decision quality as a policy benefit.

Question 14

A company says that in dismissal decisions seriousness of charge evidence and chance for improvement will all be considered. Which plan does this show?

Accepted Answer

Policy It gives balanced and fair direction to strict decisions. In exams understand disciplinary criteria as policy.

Question 15

Which statement gives the correct difference between policy and method?

Accepted Answer

Policy is decision guidance and method is technique of a task Policy directs decisions and method states the way of doing work. In exams keep guidance and technique separate.

Question 16

A company says that in supplier payment small suppliers may be given priority when they face cash difficulty. What is this?

Accepted Answer

Policy It gives situation based discretion in payment decisions. In exams treat may be given priority as a policy signal.

Question 17

A company says that sales history payment behaviour and risk level will all be considered while increasing customer credit limit. Which type of plan is this?

Accepted Answer

Policy It gives guidance with limits for credit decisions. In exams treat multi criteria discretionary decisions as policy.

Question 18

Which option gives only procedure rather than policy?

Accepted Answer

Before payment there will be order of bill checking approval and entry The third option states a fixed sequence of steps so it is procedure. In exams distinguish sequence from guidance.

Question 19

An institution says that weak performing but regular students may be given special priority in book assistance. What is this?

Accepted Answer

Policy It gives situation based priority in assistance decisions. In exams understand priority with limited discretion as policy.

Question 20

In which situation is an objective written instead of policy?

Accepted Answer

Customer complaints must be reduced by 22 percent next year Direct answer: Option B, customer complaints must be reduced by 22 percent next year. An objective is a specific result that an organisation wants to achieve. It may be measurable, time-bound or expressed through a number. Option B contains both a measurable figure, 22 percent, and a time limit, next year; therefore it describes an objective. Option A says that complaints will receive a fair hearing. This is a guiding principle for decisions, so it is a policy. Option C gives a guiding preference for choosing certified suppliers, so it is a policy. Option D gives a value-based direction for dealing with employees, so it is also a policy. The distinction is not that one sentence is longer; it is that an objective states a desired result, whereas a policy guides action. Memory cue: number plus deadline usually signals an objective.

Question 21

A company says that in a cyber security incident customer information will be shared on the basis of transparency and legal obligation. This relates to which plan?

Accepted Answer

Policy It gives general direction for sensitive information decisions. In exams treat transparency and obligation based guidance as policy.

Question 22

A company says that in internal inquiry evidence witnesses and fair hearing will be valued instead of seniority. What is this?

Accepted Answer

Policy It gives fair criteria for inquiry decisions. In exams understand fair decision guidance as policy.

Question 23

When does policy reduce arbitrariness in decisions?

Accepted Answer

When it states clear criteria and limits Clear policy makes decisions consistent and reasoned. In exams treat criteria and limits as strength of policy.

Question 24

A company says that minimum data use and clear permission will be prioritised in matters related to customer privacy. This is an example of which plan?

Accepted Answer

Policy It gives value based direction to privacy related decisions. In exams identify data use guidance as policy.

Question 25

An institution says that in sensitive complaints the complainant's identity will be kept confidential and decision will be based on evidence. Which type of plan is this?

Accepted Answer

Policy It gives confidentiality and evidence based direction to sensitive complaint decisions. In exams treat value based decision guidance as policy.

Policy

Practice questions

01 A company says that in bonus decision not only sales but customer complaint record will also be considered. What is this?

02 An institution says that education health and skill development will be prioritised in social donations. Which type of plan is this?

03 What does guided discretion in policy mean?

04 An office says that urgency of work and employee availability will both be considered in overtime approval. What is this?

05 Which option correctly identifies both policy and strategy?

06 A company says that in product recall customer safety will be kept above profit loss. This is an example of which plan?

07 When does policy convert organisational values into daily decisions?

08 A company says that in conflict of interest cases employee must disclose personal interest first and may be kept away from the decision. What is this?

09 Which statement shows a clear objective rather than policy?

10 A company says that while deciding customer compensation responsibility for fault and customer's actual loss will both be considered. This relates to which plan?

11 Which option correctly identifies both policy and programme?

12 A school says that in exam fee assistance real need previous attendance and available fund will all be considered. What is this?

13 In which situation does policy improve quality of decisions?

14 A company says that in dismissal decisions seriousness of charge evidence and chance for improvement will all be considered. Which plan does this show?

15 Which statement gives the correct difference between policy and method?

16 A company says that in supplier payment small suppliers may be given priority when they face cash difficulty. What is this?

17 A company says that sales history payment behaviour and risk level will all be considered while increasing customer credit limit. Which type of plan is this?

18 Which option gives only procedure rather than policy?

19 An institution says that weak performing but regular students may be given special priority in book assistance. What is this?

20 In which situation is an objective written instead of policy?

21 A company says that in a cyber security incident customer information will be shared on the basis of transparency and legal obligation. This relates to which plan?

22 A company says that in internal inquiry evidence witnesses and fair hearing will be valued instead of seniority. What is this?

23 When does policy reduce arbitrariness in decisions?

24 A company says that minimum data use and clear permission will be prioritised in matters related to customer privacy. This is an example of which plan?

25 An institution says that in sensitive complaints the complainant's identity will be kept confidential and decision will be based on evidence. Which type of plan is this?

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