01 In a company for high value refund first refund request is recorded then payment trail is checked then fraud risk review is done and after finance head approval payment is released. Which type of plan is this?
Answer and explanation
Correct answer: A. Procedure
Explanation: The direct answer is A: procedure. A procedure is a planned sequence of steps that explains how a repeated task must be completed. Here the company first records the refund request, then checks the payment trail, then reviews fraud risk, then obtains approval from the finance head, and finally releases payment. The order is important because each stage provides a basis for the next stage and reduces error or fraud. Option A is correct because it describes an ordered workflow. Option B, policy, is a broad guiding statement, such as a policy that high-value refunds must receive senior approval; it does not normally list every step in order. Option C, rule, is a specific instruction or prohibition, such as “no refund above a limit may be released without approval”; it is not the complete sequence. Option D, budget, is a financial estimate of expected income and expenditure, not a work process. Therefore, identify the words “first, then, after, and finally”: they strongly indicate a procedure. A useful cue is that a procedure answers the question “What steps should be followed, and in what order?”