A Ltd. plans to earn a 20% return on its investment in a new project.

Identify the type of plan being described in the above lines.

Objective

The correct answer is option 4 i.e. objective.

The statement is describing an objective. A Ltd. plans to earn a 20% return on its investment in a new project, which represents a specific financial goal. Therefore, the type of plan being described is an objective.

Every organisation must have certain objectives. Objectives may be set for the entire organisation and each department or unit within the organisation. Objectives or goals specify what the organisation wants to achieve. It could mean an increase in sales by 20% which could be objective of the entire organisation.

OTHER OPTIONS

• Programmes are detailed statements about a project which outlines the objectives, policies, procedures, rules, tasks, human and physical resources required and the budget to implement any course of action.

• Policies are general statements that guide thinking or channelise energies towards a particular direction. Policies provide a basis for interpreting strategy which is usually stated in general terms. They are guides to managerial action and decisions in the implementation of strategy.

• 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.