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In Class 12 Business Studies, this topic explains policy as a key type of standing plan within the chapter Planning. Students learn how policies provide broad guidelines for managerial thinking and decision-making while leaving room for judgment in different situations. The topic also helps distinguish policies from more specific plans such as procedures and rules, and shows how clear policies promote consistency, coordination and effective implementation of organisational objectives.
TOPIC PRACTICE
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Hard · Level 6View options
Managers will give discount only within written margin and customer value criteria
Managers will give discount by mood
Discount amount will always be random
Policy will have no limit
Hard · Level 6View options
Time criterion is unclear
Machine method is missing
Budget amount is too high
Strategy is too broad
Hard · Level 6View options
Fairness with standards
Only budget control
Machine method clarity
Strict prohibition only
Hard · Level 6View options
Policy conflict and wrong incentive
Budget exactness
Procedure clarity
Method improvement
Hard · Level 6View options
Clear distinction for fair decision
Only advertising strategy
Exact machine method
One-time budget
Hard · Level 6View options
Similar cases get fair and consistent decisions
Office walls are colourful
Receipts are thick
Chairs are new
Hard · Level 6View options
Confidential communication control
Machine output increase
Cash budget reduction
Entry rule removal
Hard · Level 6View options
Clearly include relevant priority groups
Remove the policy completely
Make budget an objective
Keep procedure secret
Hard · Level 6View options
Policy guides merit in hiring rule stops entry without admit card
Policy stops entry rule guides merit
Policy is machine technique rule is customer objective
Policy is budget rule is strategy
Hard · Level 6View options
As decision criteria
As machine operation
As one-time event
As exact penalty
Hard · Level 6View options
Policy communication and implementation gap
Budget exactness
Objective time limit
Method detail
Hard · Level 6View options
Legal non-compliance
Machine breakdown
Receipt misprint
Office decoration
Hard · Level 6View options
Considering small vendors cash flow need while making supplier payment policy
Choosing pen colour
Polishing chair
Printing one receipt
Hard · Level 6View options
Accountability control
Machine control
Colour control
Tea control
Hard · Level 6View options
Policy audit and consistency check will be difficult
Machine will become faster
Budget will form automatically
Objective will end
Hard · Level 6View options
Communication policy breach
Budget success
Procedure completion
Objective measurement
Hard · Level 6View options
Balanced commercial policy
Machine method
Strict entry rule
One-time programme
Hard · Level 6View options
Key term is unclear
Budget is high
Rule is perfect
Method is exact
Hard · Level 6View options
Policy guides customer dignity objective is to raise satisfaction score
Policy is satisfaction score objective is dignity guide
Both are methods
Both are procedures
Hard · Level 6View options
Exception control and consistency
Machine speed
Office colour
Cash counting
Hard · Level 6View options
Training of policy users
Budget removal
Rule deletion
Machine repair
Hard · Level 6View options
Use data with consent and purpose limit
Sell data without information
Ignore all privacy points
Send random message to every customer
Hard · Level 6View options
Policy criteria are wrong
System support is unable to implement the policy
It is only an objective
It has become strategy
Hard · Level 6View options
Same criteria are used in similar cases
Policy users get training
Manager approves exception based on personal relation
Reason for every exception is recorded
Hard · Level 6View options
Budget amount is missing
Machine method is missing
Objective is too broad
Responsibility and escalation control are unclear
Question 1HardLevel 6
Which option shows the decision control role of policy?
Correct answer: A
Policy keeps decision freedom within guided limits. In exams understand policy as decision control tool.
Which option correctly considers stakeholder impact in policy design?
Correct answer: A
The direct answer is A: considering small vendors’ cash-flow needs while making a supplier-payment policy. A policy is a general guideline for repeated decisions. Stakeholders are people or groups affected by an organisation’s decision, such as suppliers, workers, customers and owners. If a company delays payment, small suppliers may not have enough cash to buy materials or pay workers. Considering this effect makes the policy more responsible and practical. A is correct because it directly connects a policy decision with its effect on an affected stakeholder. B, choosing a pen colour, is a minor design choice and does not show stakeholder impact in policy design. C, polishing a chair, is routine maintenance, not policy planning. D, printing one receipt, is a single operational act, not a policy. Memory cue: policy plus affected people equals stakeholder impact.
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