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Question

Phoenix Ltd. distributes 10% of their profits among their employees as incentives every year. Identify the type of plan reflected above.

The correct answer is

Policy

The correct answer is Policy because:

  • A policy is a general guideline for decision-making that helps in smooth functioning.
  • Phoenix Ltd. has a defined rule of distributing 10% of its profits, which serves as a policy for employee incentives.
  • Policies provide a consistent approach to business activities and help in long-term planning.
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Similar Questions

  1. Cost of production increased because of sudden increase in transportation cost, which resulted in lesser profits. Which limitation of planning is highlighted in the aforesaid statement?

  2. "These are the routine steps on how to carry out activities. It provides the exact manner in which any work is to be performed." Identify the type of plan explained above.

  3. Which step of planning process involves other managerial functions as well and leads to 'doing what is required'?


Important Questions from Planning

  1. "Plans once drawn with specific goals, the managers may not be in position to change it". Which limitation of planning is discussed in the above statement.

    Which limitation of planning is being discussed?

  2. From the following identify the short term, negotiable, self-liquidating instrument used to finance the working capital requirements of business firms.

  3. "In the organisation every individual contributes to the organisational performance thus it ensures that the individual works for organisational goal." Identify the importance of directing.

  4. Miss Kolkaslen is planning to take her business of home-made chocolates to a higher level. Kindly help her to identify the process of planning by selecting the right sequence of options given below:

    A. Follow-up action

    B. Identifying alternatives and evaluating each of them.

    C. Implementing the plan.

    D. Setting objectives and developing premises.

    E. Selecting an alternative

  5. Arrange the following functions of Management in a logical order.

    A. Planning

    B. Organising

    C. Staffing

    D. Directing

    E. Controlling

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