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CSEET · Business Laws and Management · Management Knowledge for Company Secretaries

Consider the statements about standing plans and single-use plans. I. A policy is a standing plan that guides thinking and action in decision making. II. A budget prepared for one specific project is a single-use plan. III. Procedures and rules are single-use plans because they are framed for one project. Which option is correct?

Only statements I and II are correct. Policies are standing plans guiding decisions repeatedly, and a project-specific budget is a single-use plan. Procedures and rules are also standing plans used repeatedly, so statement III is incorrect.

  1. AI, II and III are all correct
  2. BI and II only are correctCorrect
  3. CII and III only are correct
  4. DI and III only are correct

Explanation

Policies are standing plans used repeatedly as guides to decisions, and a project budget is a single-use plan. Statement III is wrong because procedures and rules are standing plans meant for repeated use. So only I and II are correct.

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