Which statement describes a document that determines organization/decision making?

• A. Regulation
• B. Directive
• C. Policy
• D. Procedure

Answer: (C)

A policy establishes the framework that guides how decisions are made and what actions are permitted within the organization. It articulates the organization’s objectives, values, and the general rules that govern behavior, setting expectations for decision makers. This makes it the document that determines how the organization makes choices, because it answers what is permitted, what priorities apply, and under which circumstances action should be taken. Regulations are external legal requirements that must be followed, directives are explicit commands to take or avoid specific actions, and procedures lay out the exact steps to perform a task.