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Corporate Policy is usually a documented set of broad guidelines formulated after an analysis of all internal and external factors the can affect a firms objective, operations & plans. Formulated by the firms board of directors, corporate policy lays down the firm’s response to know and knowable situations and circumstances. It also determines the formulation and implementation of strategy and directs and restricts the plans, decisions and actions of the firm’s officers in achievement of its objectives. Corporate Policy is the guideline which helps the management to carry out its activities in a efficient and effective manner so that the objective of the organization are met. However, there are different views with regard to definition of the corporate policy. Corporate policy has been defined as “Management expressed or implied intent to govern action in pursuit of the company objectives”. Corporate policy clarifies the intension of the management in dealing with the various problems faced. It gives the management a transparent guideline to take their decisions by being on the safe side corporate policy helps the managers in identification of the solutions & the problems. It provides framework in which he has to take the decisions.

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