The correct answer is option 1- Policy.
The decision to sell a product on a cash basis only is part of the firm's policy. Policies are guidelines or principles that dictate decisions and actions within an organization. In this case, the cash-only selling approach reflects a specific policy regarding payment terms.
OTHER OPTIONS
- Objective- Objectives can be said to be the desired future position that the management would like to reach. Objectives are very basic to the organisation and they are defined as ends which the management seeks to achieve by its operations. Therefore, an objective simply stated is what you would like to achieve, i.e., the end result of activities.
- Strategy- A strategy provides the broad contours of an organisation’s business. It will also refer to future decisions defining the organisations direction and scope in the long run. Thus, we can say a strategy is a comprehensive plan for accomplishing an organisation objectives.
- Method- Methods provide the prescribed ways or manner in which a task has to be performed considering the objective. It deals with a task comprising one step of a procedure and specifies how this step is to be performed. The method may vary from task to task. Selection of proper method saves time, money and effort and increases efficiency.
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