Types of plans

Correct answer: A. It can be a numerical plan made for a specific period or task

A is correct. A budget sets out numerical estimates for a defined period or task. As a single-use plan, it is prepared for that specific purpose or period and is not simply reused unchanged for all situations.

Correct answer: C. Policy

C is correct. This is general guidance that allows employees some discretion. A policy guides behaviour or decisions broadly, whereas a rule gives a specific instruction or prohibition.

Correct answer: A. A procedure states the sequence of steps, while a rule gives a clear instruction or prohibition

A is correct. A procedure sets out the ordered steps for carrying out an activity; a rule states what must or must not be done.

Correct answer: B. Strategy

B is correct. The broad course of action for expanding into new markets is a strategy. The launch fairs are separate activities that may form part of programmes used to carry it out.

Correct answer: A. A programme is a comprehensive plan coordinating activities to achieve an objective; a procedure specifies the sequence of steps to follow.

A is correct because a programme coordinates related activities for an objective, while a procedure lays down the steps and their order for carrying out work.

Correct answer: A. Procedure

A is correct. A procedure prescribes the sequence of steps for performing work; here, document checking, site inspection and approval are carried out in a stated order.

Correct answer: C. Rule

This is a rule because it gives a clear and compulsory instruction: a data breach must be reported within 24 hours. A policy provides broad guidelines for decisions, whereas a rule specifies exactly what must or must not be done in a situation. Exam tip: Words such as “must,” “shall not,” and a fixed deadline usually indicate a rule.

Correct answer: B. Prescribed sequence of communication for recording a customer complaint by phone

A method specifies a prescribed and systematic way of performing a task. A fixed sequence of communication for recording a complaint by phone describes how the work is to be done; therefore, option B is correct. A sales budget is a budget, while prohibition on office entry is a rule. Exam tip: A plan that answers “How will the work be done?” is usually a method.

Correct answer: B. Single-use plan

B is correct. A single-use plan is prepared for a specific purpose and is not intended for repeated use; this plan is for one particular campaign.

Correct answer: C. Entry into the chemical room without a mask is strictly prohibited

Option C is correct. A rule gives a clear, compulsory instruction about what must or must not be done, leaving no scope for discretion. Therefore, the complete ban on entering a chemical room without a mask is a rule. In contrast, fair treatment of customers, priority to quality, and employee development are broad guidelines, so they are policies. Exam tip: words such as “strictly prohibited”, “mandatory”, and “must not” usually indicate a rule.

Correct answer: D. Micro technique of doing one task

The direct answer is D, a micro technique of doing one task. A strategy is a broad plan prepared to achieve important long-term objectives. It considers the organisation’s major direction, external environment, available resources and competitive position. Option A, studying the external environment, is a feature of strategy because opportunities, threats and changes outside the organisation influence strategic decisions. Option B, giving direction towards a major goal, is also a feature because strategy connects broad actions with important objectives. Option C, considering competitive position, is central to strategy because an organisation must understand rivals and its own position in the market. Option D is correct as the statement that is not a feature of strategy. A precise, small-scale technique for completing one task explains a method, not the broad route chosen by the organisation. Strategy answers ‘where and how will we compete or reach a major goal?’, while method answers ‘how exactly will this one task be done?’

Correct answer: A. Objective

A is correct. An objective is a specific result an organisation aims to achieve. Reducing the defect rate to below 5% within six months states a measurable result and a time frame.

Correct answer: A. Because it requires a specific action and leaves no discretion.

A is correct. A rule requires a specific action in a given situation and leaves no room for individual discretion. A policy, in contrast, provides broader guidance for decision-making.

Correct answer: B. Method

B is correct. A method specifies how a particular task is to be performed. The scoring technique describes how interview responses are assessed, so it is a method.

Correct answer: B. It is a numerical plan that may be expressed in money or physical units.

B is correct. A budget is a plan expressed in numerical terms. It may state financial amounts or non-financial quantities, such as units to be produced or labour hours.

Correct answer: B. Programme

The correct answer is Programme. It coordinates related activities needed to carry out a larger plan, such as advertising, decorating the venue, and registering customers for the fair.

Correct answer: C. Strategy

The correct answer is Strategy. Product positioning and choice of sales channels are broad decisions about how to pursue business objectives and compete in the market.

Correct answer: A. Increase sales by 10% within six months and prohibit entry without permission

The correct answer is A. Increasing sales by 10% within six months is a specific, measurable objective; prohibiting entry without permission is a rule because it states what is not allowed.

Correct answer: A. Method

The correct answer is Method. A method prescribes the particular technique or way of performing a task or step. A procedure, by contrast, sets out the sequence of steps.

Correct answer: C. Strategy

The correct answer is Strategy. A strategy considers the business environment and sets a broad course of action for pursuing objectives and gaining a competitive advantage.

Correct answer: B. It can bring together objectives, policies, procedures, rules, tasks, and a budget

The correct answer is B. A programme is a coordinated package of related plans and activities; it can include objectives, policies, procedures, rules, tasks, and the budget needed for implementation.

Correct answer: A. General guidance, sequence of steps, and work technique

The correct answer is A. A policy provides general guidance, a procedure specifies the sequence of steps, and a method states the technique for carrying out a task.

Correct answer: A. A policy gives general guidance, while a rule gives a strict and specific instruction

The correct answer is A. A policy gives general guidance and may leave room for judgment; a rule states a specific requirement that must be followed, such as the access-card restriction.

Correct answer: A. Objective and Strategy

The 25% increase is a specific result the company wants to achieve, so it is an objective. A broad course of action chosen to respond to exchange-rate risk is a strategy.

Correct answer: C. Policy and Rule

The first statement gives general guidance for decisions about customer data, so it is a policy. The second sets a specific prohibition, so it is a rule.