Question 1

A company says family situation and work requirement will both be considered in employee transfer. Which type of plan is this?

Accepted Answer

Policy It gives general guidance for transfer decisions. In exams treat situation based guidance as policy.

Question 2

Which statement shows the sense of rule rather than policy?

Accepted Answer

Goods will not be taken back without written approval The direct answer is C. A policy gives broad guidance and allows some judgment, while a rule is a definite, binding instruction that normally leaves no discretion. Option A says the customer's view will be heard in complaints. This is a general fairness policy because it guides the approach. Option B says merit will be valued in recruitment. That is also broad guidance, so it is a policy. Option C says goods will not be taken back without written approval. The words “will not” and the condition of written approval make it compulsory; therefore it expresses a rule. Option D gives preference to durable material in purchasing. “Preference” allows judgment and is therefore policy-like guidance, not a strict rule. The exact reasoning is to look for flexibility versus compulsion. Memory cue: “must,” “only if,” or “will not” often signals a rule; “priority,” “importance,” or “guidance” often signals a policy.

Question 3

A bank says crop situation and repayment history will both be considered in farmer loan cases. What is this?

Accepted Answer

Policy It gives guiding criteria in loan decisions. In exams understand loan decision criteria as policy.

Question 4

Which option clearly shows procedure rather than policy?

Accepted Answer

After order confirmation packing billing and dispatch will follow in order The second option states a sequence of steps so it is procedure. In exams treat ordered steps as procedure.

Question 5

An institution says real need and available fund will both be considered while giving financial assistance. This is an example of which plan?

Accepted Answer

Policy It gives general direction within limits for assistance decisions. In exams treat guided discretion as a sign of policy.

Question 6

How does policy guide managerial decisions?

Accepted Answer

By giving general principles Policy gives general principles and limits for decisions. In exams connect general principle with policy.

Question 7

A company says that in customer complaints the customer's side will be heard fully first. This is an example of which plan?

Accepted Answer

Policy It gives general direction of fairness in complaint decisions. In exams treat fair hearing guidance as policy.

Question 8

A school says that orphan students will be given priority in financial aid. What is this?

Accepted Answer

Policy Direct answer: Option D, policy. A policy gives general guidance or priority for decisions without describing a complete step-by-step procedure or a fixed amount of money. In this case, the school must decide which students should receive financial aid. It announces that orphan students will receive priority, so the statement supplies a criterion for repeated aid decisions. Option D is correct because it guides decision-making while leaving the final case-by-case decision to the school. Option A, procedure, would explain the sequence for applying, checking documents and approving aid. Option B, budget, would show how much money is available or how it will be distributed. Option C, rule, could be a strict command such as “only orphan students may receive aid”; the statement instead says they receive priority, which is guidance rather than an absolute prohibition. Exam cue: priority or preference in a class of decisions usually indicates policy.

Question 9

A bank says that in education loans both student's merit and family income will be considered. Which type of plan is this?

Accepted Answer

Policy The statement provides broad guidelines for deciding education loans, so it is a policy. A policy guides managers in making decisions in similar situations, whereas a rule is a definite instruction to do or not do something. Exam tip: identify a policy when general criteria or guidance for decisions are given.

Question 10

A company says legal provisions and employee convenience will both be considered in maternity leave cases. What is this?

Accepted Answer

Policy The direct answer is D: this is a policy. The company is giving broad guidance for maternity-leave decisions: employees’ convenience should be considered together with legal provisions. Step by step: maternity-leave cases may differ; the law provides a necessary boundary; employee circumstances also require judgment; the statement tells decision-makers what considerations to use without prescribing one identical answer in every case. That flexibility is the key feature of a policy. Option D is correct. Option A, budget, is a numerical financial plan showing expected income or expenditure, not guidance about leave decisions. Option B, method, normally explains the particular way or sequence of carrying out an activity; this statement does not give steps. Option C, rule, is a definite binding instruction that usually leaves little or no discretion, such as “leave must be approved only under condition X.” Here both legal requirements and convenience are weighed, so judgment remains. Memory cue: flexible direction for repeated decisions is policy; an exact “must” command is rule.

Question 11

Why is policy called a standing plan?

Accepted Answer

Because it applies repeatedly in similar situations Policy gives similar direction in repeated decisions. In exams connect standing plan with repeated use.

Question 12

A hospital says instalment facility may be considered in bill payment of poor patients. This is an example of which plan?

Accepted Answer

Policy It gives discretion and guidance in payment decisions. In exams treat may be considered as a sign of policy.

Question 13

An e commerce platform says customer's proof and packing condition will be considered in return of broken goods. What is this?

Accepted Answer

Policy It gives general criteria for return decisions. In exams treat return decision criteria as policy.

Question 14

A company says results and leadership behaviour will both be considered in employee promotion. This relates to which plan?

Accepted Answer

Policy It gives general criteria for promotion decisions. In exams understand promotion criteria as policy.

Question 15

An institution says extra time may be given in service to customers with disabilities. What is this?

Accepted Answer

Policy It gives inclusive and flexible direction to service decisions. In exams treat inclusive guidance as policy.

Question 16

A company says while selecting new suppliers timely delivery record will also be considered along with price. This is an example of which plan?

Accepted Answer

Policy It is decision guidance for supplier selection. In exams treat supplier selection guidance as policy.

Question 17

A transport company says safety complaints of women travelling alone at night will get special priority. What is this?

Accepted Answer

Policy It gives priority direction to safety decisions. In exams understand special priority guidance as policy.

Question 18

What is the correct difference between policy and programme?

Accepted Answer

Policy is decision guidance and programme is a group of activities Policy guides decisions and programme combines activities. In exams keep guidance and activity package separate.

Question 19

A company says employee health condition and office requirement will both be considered in transfer. Which type of plan is this?

Accepted Answer

Policy It gives balanced guidance for transfer decisions. In exams treat situation based criteria as policy.

Question 20

Which option correctly identifies both policy and procedure?

Accepted Answer

Respecting customer is policy and steps of complaint registration are procedure Respect is general guidance and order of steps is procedure. In exams keep guidance and sequence separate.

Question 21

An office says work nature and data privacy will be considered in remote work permission. What is this?

Accepted Answer

Policy It gives criteria for remote work decisions. In exams understand permission criteria as policy.

Question 22

A company says environment friendly packing material will be given priority in purchase. This relates to which plan?

Accepted Answer

Policy It gives environmental direction to purchase decisions. In exams treat green purchasing guidance as policy.

Question 23

A bank says weather risk and previous repayment behaviour will both be considered in farmer loans. What is this?

Accepted Answer

Policy It gives guiding criteria for loan decisions. In exams understand loan decision criteria as policy.

Question 24

A hotel says families with children may be given priority in less noisy rooms. This is an example of which plan?

Accepted Answer

Policy It gives flexible guidance to room allotment decisions. In exams treat may be given priority as policy.

Question 25

A company says independent inspection will be valued in quality related disputes. What is this?

Accepted Answer

Policy The direct answer is C, Policy. A policy is a general guideline that tells decision-makers which approach or principle should receive importance. Here, independent inspection is to be valued when a quality dispute arises. This guides the decision but does not give a complete sequence of steps. Option A, Budget, is a quantified plan of expected income and expenditure, so it does not fit. Option B, Method, is a particular way of doing a task; the statement does not describe detailed working steps. Option C, Policy, is correct because it gives guidance for deciding quality-related disputes. Option D, Procedure, would explain an ordered process, such as who receives the complaint, who appoints the inspector, and how the report is recorded. The phrase “will be valued” expresses a principle rather than a compulsory command. Memory cue: a preferred principle used in repeated decisions is a policy.

Policy

Practice questions

01 A company says family situation and work requirement will both be considered in employee transfer. Which type of plan is this?

02 Which statement shows the sense of rule rather than policy?

03 A bank says crop situation and repayment history will both be considered in farmer loan cases. What is this?

04 Which option clearly shows procedure rather than policy?

05 An institution says real need and available fund will both be considered while giving financial assistance. This is an example of which plan?

06 How does policy guide managerial decisions?

07 A company says that in customer complaints the customer's side will be heard fully first. This is an example of which plan?

08 A school says that orphan students will be given priority in financial aid. What is this?

09 A bank says that in education loans both student's merit and family income will be considered. Which type of plan is this?

10 A company says legal provisions and employee convenience will both be considered in maternity leave cases. What is this?

11 Why is policy called a standing plan?

12 A hospital says instalment facility may be considered in bill payment of poor patients. This is an example of which plan?

13 An e commerce platform says customer's proof and packing condition will be considered in return of broken goods. What is this?

14 A company says results and leadership behaviour will both be considered in employee promotion. This relates to which plan?

15 An institution says extra time may be given in service to customers with disabilities. What is this?

16 A company says while selecting new suppliers timely delivery record will also be considered along with price. This is an example of which plan?

17 A transport company says safety complaints of women travelling alone at night will get special priority. What is this?

18 What is the correct difference between policy and programme?

19 A company says employee health condition and office requirement will both be considered in transfer. Which type of plan is this?

20 Which option correctly identifies both policy and procedure?

21 An office says work nature and data privacy will be considered in remote work permission. What is this?

22 A company says environment friendly packing material will be given priority in purchase. This relates to which plan?

23 A bank says weather risk and previous repayment behaviour will both be considered in farmer loans. What is this?

24 A hotel says families with children may be given priority in less noisy rooms. This is an example of which plan?

25 A company says independent inspection will be valued in quality related disputes. What is this?

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