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CS Professional · Strategic Management and Corporate Finance · Business Policy and Formulation of Functional Strategy

Which of the following is generally treated as a feature of a well-framed business policy?

A well-framed business policy should be consistent with organisational objectives and with other policies. It must also be clear, stable enough to guide repeated decisions, and communicated to those applying it. Vague, constantly changing or secret policies fail to guide decisions uniformly.

  1. AIt should be consistent with the organisation's objectives and with other policiesCorrect
  2. BIt should be vague so that it can be interpreted in any manner
  3. CIt should be changed with every decision to retain flexibility
  4. DIt should be kept secret from the employees who must apply it

Explanation

A good policy is clear, aligned with objectives, consistent with other policies, and communicated to those who apply it. Vagueness, constant change and secrecy defeat its purpose of guiding decisions uniformly.

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