In the context of the types of plan, identify the correct statement.

The correct answer is Option (1) → Objectives need to be expressed in specific terms.

• Option (1) Objectives need to be expressed in specific terms. — Correct. Objectives need to be expressed in specific terms, that is, they should be measurable in numbers and achieved within a given time. For example, “increase sales by 10% this year” is a specific objective.

• Option (2) Policy refers to specific statements which are decided for the guidance of top management only. — Incorrect. Policies are general statements, not specific ones. They are made for all levels and departments, not for top management only.

• Option (3) Procedure refers to the plan which tells us what is to be done and what not to be done. — Incorrect. This describes a rule. A procedure gives the routine steps, in order, for doing a piece of work.

• Option (4) Rules refer to a plan that covers a large organizational activity and specifies main steps and its orders. — Incorrect. Rules are simple, specific statements of what must or must not be done. Laying down steps in order is the work of a procedure, and a plan for a large activity is a programme.