The Difference Between a Policy and a Rule Is That

question 20

Multiple Choice

The difference between a policy and a rule is that

• A) a policy is rigid, but a rule is comparatively flexible.
• B) a policy does not specify details of how to handle a specific situation, but rules are very specific.
• C) a policy is related to operational planning and has a narrower scope compared to a rule.
• D) a policy is not open to interpretation like a rule.

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Definitions:

Patent

A Patent is a form of intellectual property that grants its holder exclusive rights to a new invention or process for a certain period of time.

Straight-Line Method

A depreciation technique that allocates an equal amount of the asset's cost to each year of its useful life.

Residual Value

The estimated value of an asset at the end of its useful life.

Internally Generated Goodwill

The increase in value of a business due to factors like reputation, brand, customer base, and relationships that are developed internally over time and not acquired or purchased.