Types of plans

Correct answer: D. Method

A method specifies the prescribed way or sequence for performing a task. The nozzle pressure and layering technique state how cake decoration will be done, so this is a method. A rule only states what must or must not be done; it does not describe the procedure. Exam tip: If a question focuses on ‘how’ a task is performed or on a technique/sequence, choose method.

Correct answer: A. Budget

The correct answer is option A, Budget. A budget is a plan expressed in numerical or financial terms. It estimates how much money will be received or spent during a particular future period. The department has separately estimated next month’s spending on paper printing and courier services, so this is a budget. Option A is correct because estimated expenses and a future period are clearly present. Option B, Rule, is a compulsory instruction about what must or must not be done; it does not usually give expense figures. Option C, Policy, is a broad decision guideline, such as giving priority to urgent cases, not a list of calculated costs. Option D, Procedure, is an ordered set of steps for doing a task, while the statement gives amounts or estimates rather than steps. The exam clue is: whenever expected income, expenditure, quantities or financial figures are arranged for a future period, think of a budget.

Correct answer: B. Programme

The plan coordinates several related activities and resources for a specific event. Such a coordinated plan of activities and resources is a programme.

Correct answer: C. A regular procedure for returning goods

A standing plan is used repeatedly for recurring situations. A regular goods-return procedure can be applied again and again, unlike plans for one-time or temporary events.

Correct answer: D. Single-use plan

The plan is made for one specific exhibition and is not intended to be used repeatedly. A plan designed for a particular, non-recurring purpose is a single-use plan.

Correct answer: A. Strategy

The company has chosen a broad, long-term direction for competing by differentiating itself through quality and service rather than low prices. This is a strategy.

Correct answer: B. Reduce delayed deliveries by 18% within four months

The correct answer is B. An objective states a specific result to be achieved. Reducing delayed deliveries by 18% within four months gives both a measurable target and a time limit.

Correct answer: C. Policy

The correct answer is C, a policy. These criteria provide general guidance for making loan decisions while leaving room to assess individual cases; they are not a fixed prohibition or a numerical estimate.

Correct answer: A. Procedure

This shows a prescribed sequence of steps for completing a purchase activity, so it is a procedure. A procedure states the order in which a routine task is to be performed. A method describes the way of doing a task, whereas a budget is a financial estimate and a strategy is a broader course of action. Exam tip: When a question gives a fixed order of steps, look for ‘procedure’.

Correct answer: B. Method

The correct answer is Method. A method specifies the prescribed way or technique of performing a task. Here, the artist is taught a particular brush technique for creating shadows, so it is a method. A rule states what must or must not be done, whereas a programme is a time-bound sequence of activities. Exam tip: Words such as “how to do” or “technique” usually indicate a method.

Correct answer: C. A budget expresses a plan in numerical terms, while a programme coordinates activities for a specific purpose

The correct answer is C. A budget presents expected results or resource use in numerical terms. A programme brings together activities and the steps needed to achieve a specific purpose.

Correct answer: B. Strategy

The correct answer is B, a strategy. It sets a broad course of action—in this case, how the hotel will approach pricing, promotion, and partnerships during the tourist season.

Correct answer: C. Policy

The correct answer is C, a policy. Performance and honesty are general criteria that guide promotion decisions, rather than a fixed step-by-step procedure or a strict rule.

Correct answer: A. Procedure

The direct answer is A, Procedure. A procedure is a definite sequence of steps that must normally be followed to complete a task. In the example, the claim is handled through document checking, site inspection and final approval in a fixed order. The important clue is not merely that several activities exist, but that their order is decided. Option A is correct because it describes the step-by-step path for processing a claim. Option B, Policy, would provide a broad guideline, such as treating genuine claims fairly or requiring adequate proof; it would not mainly state the exact sequence. Option C, Objective, would state a desired result, such as settling 90 percent of claims within ten days; no result or target is given. Option D, Programme, is a coordinated one-time or special plan involving activities, resources, timing and responsibility; the question focuses specifically on the ordered steps. Memory cue: a procedure answers ‘what comes first, next and last?’

Correct answer: A. Single-use plan

The correct answer is A, a single-use plan. It is designed for a specific, one-time event and is not intended to be reused for recurring activities.

Correct answer: B. Policy

The correct answer is option B, Policy. A policy is a general guideline that helps an organisation make decisions in recurring situations. It does not normally give a complete step-by-step method or an exact amount. The statement gives a principle for distributing aid: people with the most serious need should receive priority. Therefore option B is correct because it guides judgement and decisions. Option A, Budget, would contain numerical estimates of income or expenditure, but no financial figures are given. Option C, Method, explains the particular way of performing one task, such as a technique for cutting or assembling something; this statement sets a priority, not a technique. Option D, Rule, is usually an exact compulsory instruction with no discretion, whereas a priority policy guides decisions about cases and circumstances. Remember: a policy answers “what principle should guide decisions?”, while a rule answers “what must or must not be done?”

Correct answer: D. Budget

The correct answer is D, a budget. It forecasts cash inflows and outflows in numerical terms for each month, which is the purpose of a cash budget.

Correct answer: A. Open ten branches; removing records without permission is prohibited

The correct answer is A. Opening ten branches is a specific target, so it is an objective. Prohibiting the removal of records without permission is a strict instruction, so it is a rule.

Correct answer: B. Strategy

The choice of a target customer group and a broad approach to serving it is part of a strategy. It sets the company’s long-term market direction rather than prescribing a specific sequence of steps or a strict rule.

Correct answer: A. When it estimates income and expenses for a specific event

A budget for a particular event estimates its expected income and expenses. Since it is prepared for that specific purpose rather than repeated routine use, it can be a single-use plan.

Correct answer: C. Policy

This is a policy: it gives general guidance while leaving employees room to use judgment. A rule would prescribe or prohibit a specific action, and a procedure would set out steps to follow.

Correct answer: A. A procedure gives the sequence of steps, while a rule directs what must or must not be done

A procedure specifies the usual sequence of steps for carrying out an activity. A rule states what must or must not be done and does not provide a sequence of steps.

Correct answer: C. Strategy

The direct answer is C: strategy. A strategy is a broad plan or general direction prepared to achieve an important long-term objective. Here the company has decided on a large expansion—fifty new service centres within two years. That overall direction is strategy, while the separate plan for opening each city is more detailed and operational. Step by step: identify the major goal, which is expansion; notice its broad scale and two-year time frame; distinguish the overall direction from the individual city actions; therefore choose strategy. Option A, programme, is a coordinated set of activities or steps for carrying out a plan, so a city-opening schedule may be a programme, but it is not the broad direction asked for. Option B, method, means the manner or procedure used to perform one task; it is too narrow. Option C is correct because strategy gives the broad route for achieving a major objective. Option D, rule, is a specific instruction about what must or must not be done, not a large expansion direction. Memory cue: broad long-term direction is strategy; detailed activity package is programme; procedure is method; compulsory instruction is rule.

Correct answer: A. Procedure

The application follows a specified sequence: document upload, committee review, and approval. A plan that lays out the steps and their order is a procedure.

Correct answer: A. Policy

A policy provides broad guidance for decision-making and allows managerial discretion according to the situation. A procedure specifies fixed steps, whereas promotion criteria are a general decision guideline. Exam tip: choose policy when you see “broad guideline.”