What Is the Primary Difference Between a Policy and a Procedure

question 7

Multiple Choice

What is the primary difference between a policy and a procedure?

• A) A policy focuses on the organization as a whole, but a procedure focuses only on a single department.
• B) A policy sets a broad guideline, but a procedure defines precise actions to be taken.
• C) A policy is a single-use plan, but a procedure is a standing plan.
• D) A policy identifies short-term directions for the organization, but a procedure identifies long-term directions.
• E) A policy guides fair employment, but a procedure guides ethical principles.

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Definitions:

Compounded Semi-Annually

Involves calculating the addition of interest to the principal sum of a loan or deposit on a half-yearly basis, incrementally increasing the amount earned or owed.

Payment Stream

A series of payments made over a period of time, often in the context of loans or annuities.

Production Units

Quantities of output, such as goods or services, produced within a specified timeframe.

Demand Decrease

A reduction in the quantity of a product or service that consumers are willing and able to purchase at a given price.