Q1. A headteacher prepares a yearly statement that estimates the school income from all sources and plans how it will be spent on salaries, teaching materials and maintenance. This statement is best described as a school budget because it is:

• (A) A record of money already spent in previous years
• (B) A financial plan that estimates income and allocates expenditure for a coming period
• (C) A list of fees collected from pupils during one term
• (D) A bank statement showing the balance on a single date

Q2. In a line-item budget, expenditure is grouped under separate heads such as salaries, stationery, utilities and repairs, and money cannot easily be moved from one head to another. The main strength of this format is that it:

• (A) Allows spending to shift freely between heads without approval
• (B) Links every rupee directly to a measured learning outcome
• (C) Gives clear control over spending under each separate head
• (D) Removes the need for any record of actual spending

Q3. A school groups its spending by programmes, such as the science programme, the literacy programme and the sports programme, rather than by objects like paper and furniture. This budgeting approach is called:

• (A) Line-item budgeting, because it lists objects of spending
• (B) Zero-based budgeting, because every item starts from zero
• (C) Programme budgeting, because funds are organized around activities and objectives
• (D) Incremental budgeting, because last year figures are simply increased

Q4. A district asks each school to justify its whole budget from scratch, explaining why every post, activity and purchase is needed, instead of adding a percentage to last year budget. This method is known as:

• (A) Deficit budgeting, because spending is planned above income
• (B) Line-item budgeting, because spending is grouped by heads
• (C) Programme budgeting, because spending is grouped by activities
• (D) Zero-based budgeting, because no previous allocation is taken for granted

Q5. A school receives funds for a remedial reading scheme and must report how many pupils improved their reading levels for the money spent. This link between funding and measured results is the central feature of:

• (A) Performance-based budgeting, which ties allocations to outputs and outcomes
• (B) Line-item budgeting, which controls spending by objects
• (C) Lump-sum budgeting, which gives a single total without conditions
• (D) Incremental budgeting, which adjusts the previous year total

Q6. A headteacher takes last year budget, increases each head by five percent for inflation, and presents it as the new budget without reviewing whether each activity is still needed. This approach is best described as:

• (A) Zero-based budgeting, because each item is re-justified
• (B) Programme budgeting, because funds follow programmes
• (C) Incremental budgeting, because it builds on the previous year base with an adjustment
• (D) Performance-based budgeting, because it rewards measured results

Q7. Which of the following is the most likely weakness of a strictly line-item budget in a school that needs to respond quickly to a broken water pump?

• (A) It makes the total budget figure impossible to calculate
• (B) It prevents any record of how money was spent
• (C) It requires approval to transfer funds from another head, which can delay urgent repair
• (D) It forces the school to spend only on learning outcomes

Q8. A school management committee wants to compare the cost of its science programme with the cost of its sports programme, including staff time, materials and equipment for each. Which budget format serves this comparison best?

• (A) A line-item budget, which hides programme totals inside object heads
• (B) A programme budget, which shows the full cost of each programme
• (C) A cash book, which records daily receipts only
• (D) A stock register, which lists furniture in store

Q9. A new school with no previous spending history must prepare its first budget. Its headteacher asks every department to build its estimates from its planned activities and needs, without any past figures to copy. This situation most favours:

• (A) Incremental budgeting, which needs a previous base
• (B) A supplementary budget, which revises an existing budget
• (C) Deficit financing, which plans spending above income
• (D) Zero-based budgeting, which builds each estimate from justified needs

Q10. A province links part of a school grant to improvements in enrolment, attendance and examination pass rates. A critic warns that the school may focus only on measured indicators and neglect art, sports and character building. This criticism is aimed at a risk of:

• (A) Line-item budgeting, which controls objects of spending
• (B) Performance-based budgeting, which can narrow attention to what is measured
• (C) Zero-based budgeting, which re-justifies all spending
• (D) Cash budgeting, which tracks daily cash flow

Q11. During the school year, prices rise sharply and the school needs extra funds for electricity beyond the original estimate. The headteacher prepares an additional estimate for approval. This document is best called a:

• (A) Recurring budget, because it repeats every year unchanged
• (B) Zero-based budget, because it starts the whole budget again
• (C) Capital budget, because it covers only building work
• (D) Supplementary budget, because it adds to the approved budget during the year

Q12. A school budget separates spending on a new classroom block from spending on salaries, textbooks and daily running costs. The classroom block belongs to the capital budget because it is:

• (A) Spending that creates a lasting asset rather than meeting a recurring need
• (B) Spending that must be repeated every month without change
• (C) Spending controlled only by the district cashier
• (D) Spending that produces no record for audit

Q13. A public school receives most of its running costs from a government grant, collects a small approved fund from parents, and receives donated books from a local welfare organization. Which statement best describes its funding pattern?

• (A) It relies on a single source, the parent fund alone
• (B) It depends entirely on examination fees
• (C) It combines government grants, approved parent contributions and community donations
• (D) It is funded only by the sale of school property

Q14. A private school sets its fee after estimating teacher salaries, rent, utilities and learning materials, and after checking what similar schools in the area charge. This fee-setting approach is sound mainly because it:

• (A) Ignores all costs and follows the highest fee in the city
• (B) Sets the fee only from the cost of textbooks
• (C) Balances actual running costs with what parents in the area can reasonably bear
• (D) Changes the fee every week according to daily cash needs

Q15. A school collects fees in cash but issues no receipt and keeps no fee register. The greatest management risk in this practice is that:

• (A) The school may charge different fees to different pupils without parents noticing
• (B) Fee income cannot be traced, verified or reconciled with bank deposits
• (C) The office may take longer to prepare the term’s fee summary
• (D) Teachers may be unsure how much fee income is available for classroom materials

Q16. A headteacher allows fee concessions for orphan pupils and children of low-income families, recording each concession with the reason and the approving authority. This practice is best defended on the ground that it:

• (A) Increases total fee income in every case
• (B) Removes the need to keep any fee record
• (C) Protects access for needy pupils while keeping concessions transparent and accountable
• (D) Allows the headteacher to waive fees without any record

Q17. A school receives extra reading support funding and gives larger shares to the classes with the weakest reading scores, rather than the same amount to every class. This allocation follows the principle of:

• (A) Equal allocation, giving every class the same amount regardless of need
• (B) Allocation by enrolment size alone, giving larger classes proportionally more regardless of reading levels
• (C) Equity, directing more support where need is greatest so that weaker classes can catch up
• (D) Allocation by past spending, repeating last year’s distribution of reading support

Q18. A school receives a grant tied to the purchase of science equipment. The headteacher uses part of it to pay an electricity bill, arguing that the school needed the money urgently. This action is problematic mainly because:

• (A) Electricity bills are never a legitimate school expense
• (B) Grants may only be spent after the school year ends
• (C) Science equipment is never urgently needed
• (D) Earmarked funds must be used for the purpose for which they were given

Q19. When allocating its annual budget, a school gives larger shares to subjects with larger enrolments and heavier practical requirements, and smaller shares to small optional subjects. This allocation principle is best described as:

• (A) Allocation only to subjects examined by the board
• (B) Allocation by lottery among departments
• (C) Allocation by seniority of the department head
• (D) Allocation according to need and workload, not equal shares for all

Q20. A school keeps its fee collection, its bank deposits and its expenditure records in separate hands, so that the person collecting cash does not also approve spending. This separation is an example of:

• (A) Internal control, which reduces the risk of error and misuse
• (B) Performance budgeting, which links funds to outcomes
• (C) Zero-based budgeting, which re-justifies spending
• (D) Decentralization, which moves decisions to districts

Q21. A parent complains that a fee increase was announced without explanation. The school management committee responds by publishing the cost breakdown behind the increase and inviting parents to a meeting. This response best supports:

• (A) Financial transparency, because stakeholders can see the reasons for the change
• (B) Fee secrecy, because only the committee sees the figures
• (C) Automatic fee approval, because parents must accept any increase
• (D) Central control, because the district sets every fee

Q22. A school plans to use its parent-teacher fund for library books, but the fund rules allow spending only on co-curricular activities. The correct management action is to:

• (A) Spend the fund on library books and record it as co-curricular spending
• (B) Stop all co-curricular activities for the year
• (C) Seek an alternative legitimate source for library books and use the fund for its permitted purpose
• (D) Merge the fund with salary payments without approval

Q23. A headteacher compares the money allocated for laboratory chemicals with the money actually spent each month, and reports any large difference to the committee with an explanation. This routine is best described as:

• (A) Budgetary control, which tracks actual spending against planned spending
• (B) Zero-based budgeting, which rebuilds the budget from scratch
• (C) Cost-benefit analysis, which compares total costs with total benefits
• (D) External audit, which is done by an outside auditor

Q24. A school receives donations in kind, such as furniture and computers, from a local business. Good financial management requires the school to:

• (A) Accept the items without any record, since no cash changed hands
• (B) Record the items in the stock register with their estimated value and source
• (C) Distribute the items to staff for personal use
• (D) Sell the items immediately and keep the cash unrecorded

Q25. At the end of the year, an independent officer examines the school accounts, checks vouchers against entries, and reports whether the accounts present a fair picture. This process is called:

• (A) Internal checking by the school clerk alone
• (B) Budget preparation for the next year
• (C) Stock-taking of furniture and equipment
• (D) Audit, because it provides independent verification of financial records

Q26. An auditor finds that a school paid for textbooks but has no delivery note or receipt to prove the books arrived. The auditor is most likely to raise this as a:

• (A) Proof that the textbooks were definitely stolen
• (B) Routine success with no further action needed
• (C) Weakness in supporting evidence, because payment lacks a matching receipt record
• (D) Reason to cancel all future textbook purchases

Q27. A school committee regularly reviews spending, asks the headteacher to explain variances, and publishes an annual statement of accounts for parents. This practice best illustrates financial accountability because it:

• (A) Spending is reviewed only by the headteacher, with a summary shared at the end of the year
• (B) Accounts are published, but variances are explained only when parents formally complain
• (C) The committee approves the budget in advance but does not review actual spending during the year
• (D) Shows that those handling public and parent money answer for its use

Q28. Which practice best distinguishes an internal audit from an external audit in a school system?

• (A) Internal audit requires no records, while external audit requires no independence
• (B) Internal audit examines only buildings, while external audit examines only pupils
• (C) Internal audit is done once in ten years, while external audit is done daily
• (D) Internal audit is done by staff within the organization for ongoing control, while external audit is done by an independent body

Q29. A school spends 600,000 rupees a year to educate 300 pupils. Its unit cost per pupil is:

• (A) 1,000 rupees, obtained by dividing pupils by total cost
• (B) 2,000 rupees, obtained by dividing total cost by the number of pupils
• (C) 3,000 rupees, obtained by adding cost and pupil numbers
• (D) 600,000 rupees, which is the total cost itself

Q30. Two schools both spend the same total amount, but one educates 500 pupils while the other educates 250. A cost analyst would most reasonably conclude that:

• (A) Both schools are equally efficient, since total spending is identical
• (B) The larger school has the lower unit cost, though quality must also be checked
• (C) The smaller school must be wasting money on every item
• (D) Unit cost cannot be compared between schools of different sizes

Q31. A school first defines the vacancy, the required qualification, teaching subject and experience, and only then advertises the post. This order is important because recruitment should begin with:

• (A) A clear job description and person specification for the post
• (B) Interviews with candidates who happen to visit the school
• (C) Appointment of the first applicant regardless of subject
• (D) A salary offer made before duties are known

Q32. A selection panel shortlists applicants by checking qualifications and experience against the advertised criteria, then interviews only those who meet them. The main purpose of shortlisting is to:

• (A) Appoint the candidate who applies first
• (B) Avoid interviewing any candidate at all
• (C) Reduce a large field to suitable candidates for detailed assessment
• (D) Select candidates by personal recommendation alone

Q33. For a secondary physics post, a school asks shortlisted candidates to teach a sample lesson in addition to answering interview questions. The sample lesson is valuable mainly because it:

• (A) Measures only the candidate handwriting
• (B) Replaces the need to check qualifications
• (C) Guarantees that the candidate will accept the salary offered
• (D) Tests classroom skill directly, which an interview alone cannot show

Q34. A panel member favours a candidate who is a relative and argues against checking the candidate references. The panel chair insists that references be checked for every shortlisted candidate. The chair is protecting:

• (A) Fairness and merit in selection, by applying the same checks to all
• (B) The right of panel members to appoint relatives
• (C) Speed of appointment at the cost of verification
• (D) Secrecy about the selection criteria

Q35. A school advertises a post only through word of mouth among existing staff, and receives applications from a narrow circle. The main recruitment weakness here is that:

• (A) The school will necessarily appoint an unqualified teacher
• (B) The pool of applicants is limited, reducing the chance of finding the best candidate
• (C) Interviews become unnecessary for internal candidates
• (D) The salary for the post automatically increases

Q36. Which of the following is the strongest reason for a school to verify a candidate academic degrees and teaching certificates before appointment?

• (A) Verification delays the appointment and should be avoided
• (B) Verification is needed only for senior posts, not for new teachers
• (C) Verification replaces the interview and demonstration lesson
• (D) Verification confirms that the qualifications claimed for the post are genuine

Q37. A newly appointed teacher receives a timetable, a scheme of work, an introduction to school rules, and a mentor for the first term. This planned welcome process is called:

• (A) Induction, because it orients the new teacher to the school and its work
• (B) Appraisal, because it judges the teacher performance
• (C) Promotion, because it raises the teacher to a senior post
• (D) Transfer, because it moves the teacher to another school

Q38. A new teacher struggles in the first month because nobody explains the attendance system, the discipline procedure or where teaching materials are kept. The school failure is mainly in:

• (A) Salary payment, because the teacher was paid on time
• (B) Orientation, because practical information about the school was not provided
• (C) Examination setting, because papers were prepared early
• (D) Building maintenance, because classrooms were clean

Q39. A mentor observes a new teacher lesson, discusses strengths and weaknesses, and helps the teacher set two improvement targets for the next month. This mentoring practice best supports the new teacher by:

• (A) Providing guided feedback and realistic goals early in the post
• (B) Replacing all formal training for the year
• (C) Judging the teacher for promotion immediately
• (D) Removing the need for lesson planning

Q40. A school appoints a teacher on probation for one year, with regular observations and a review at year end before confirmation. The main purpose of probation is to:

• (A) Avoid paying the teacher during the first year
• (B) Assess suitability for permanent appointment through observed performance
• (C) Prevent the teacher from attending training
• (D) Keep the post vacant for a preferred candidate

Q41. When a vacancy arises, a school first considers whether a qualified teacher already on staff can be promoted or transferred to fill it, before advertising outside. This internal approach can be defended because it:

• (A) It rewards staff loyalty to the school
• (B) It lowers the risk of appointment disputes because the candidate is already on staff
• (C) Rewards existing staff and uses knowledge of their proven work
• (D) It transfers a teacher’s classroom strengths directly into effectiveness in the new role

Q42. A selection panel uses the same interview questions, the same lesson-observation form and the same scoring guide for every candidate for one post. This consistency mainly improves:

• (A) The speed of salary payment after appointment
• (B) The reliability and fairness of comparisons between candidates
• (C) The number of applicants for future posts
• (D) The size of the school building

Q43. A headteacher appraises a teacher by observing lessons, reviewing pupil work and discussing targets, then agreeing on areas for improvement. This appraisal is formative in character mainly because it aims to:

• (A) Punish the teacher for weak results
• (B) Replace the teacher at the end of term
• (C) Decide salary without any discussion
• (D) Develop performance through feedback and agreed next steps

Q44. An appraisal system judges teachers only on their pupils final examination scores, ignoring lesson quality, effort with weak pupils and co-curricular work. The main flaw in this system is that it:

• (A) Uses too many sources of evidence
• (B) Gives teachers too much feedback
• (C) Measures a narrow outcome and overlooks important parts of teaching
• (D) Requires headteachers to observe lessons

Q45. A teacher receives an appraisal report that lists only weaknesses, with no evidence, no discussion and no chance to respond. The most serious procedural weakness is that the appraisal lacks:

• (A) Confidentiality, because the teacher saw the report
• (B) Speed, because it was completed in one week
• (C) Length, because the report is only two pages
• (D) Fairness, because it denies evidence, dialogue and a right of reply

Q46. A school runs an in-service training workshop on formative assessment, then follows it with classroom coaching and a review meeting a month later. This design is stronger than a single lecture because it:

• (A) Links training to classroom practice and follow-up support
• (B) Reduces the total time teachers spend on training
• (C) Removes the need for teachers to plan lessons
• (D) Guarantees higher examination scores for all pupils

Q47. A teacher attends training on a new science curriculum but returns to find no equipment, no timetable change and no encouragement to try the new methods. The training is least likely to change practice because:

• (A) The teacher lacked interest in science
• (B) The school environment does not support applying what was learned
• (C) Training is never useful for experienced teachers
• (D) The curriculum itself is too simple

Q48. A headteacher wants to raise staff morale. She publicly recognizes good teaching, involves teachers in timetable decisions, and deals promptly with a long-standing workload complaint. This approach is sound because morale is most influenced by:

• (A) Recognition, participation and fair handling of genuine concerns
• (B) Increasing paperwork for all staff
• (C) Keeping all decisions secret from teachers
• (D) Praising only senior staff in every meeting

Q49. A school offers teachers a choice of professional development routes, such as subject workshops, peer observation and action research, matched to their appraisal targets. This choice is valuable mainly because it:

• (A) Allows teachers to avoid all training
• (B) Reduces the headteacher workload to zero
• (C) Matches development to individual needs and agreed targets
• (D) Guarantees promotion for everyone who attends

Q50. According to common motivation theory, a teacher who stays late to prepare engaging lessons mainly because the work itself is satisfying is driven chiefly by:

• (A) Extrinsic reward, such as a bonus payment
• (B) Fear of inspection and punishment
• (C) Intrinsic motivation, arising from interest and satisfaction in the work
• (D) Peer pressure from other departments

Q51. A school improves salaries but leaves teachers with unclear duties, no recognition and no say in decisions. Motivation remains low. This outcome best supports the idea that:

• (A) Pay alone cannot sustain motivation when recognition and participation are missing
• (B) Salary increases always reduce motivation
• (C) Teachers are motivated only by inspection
• (D) Recognition has no effect on any teacher

Q52. A headteacher sets clear performance targets with each teacher, reviews progress mid-year, and adjusts support where a teacher is struggling. This cycle best describes appraisal linked to:

• (A) Random judgement at year end with no prior discussion
• (B) Performance management, which sets targets, monitors progress and provides support
• (C) Recruitment, which fills vacant posts
• (D) Budgeting, which allocates funds by heads

Q53. A headteacher distributes teaching periods, examination duties and co-curricular responsibilities by checking each teacher subject, experience and existing load, rather than giving the same extras to the most willing teacher every time. This practice best supports:

• (A) Payment of overtime for every period taught
• (B) Concentration of all duties on senior teachers
• (C) Removal of all co-curricular work from schools
• (D) Fair workload distribution, which balances duties across staff

Q54. A capable teacher leaves a school after two years, citing excessive marking load, no mentoring and no prospect of promotion. The school loss is best understood as a retention problem linked to:

• (A) Workload, support and career prospects, which shape a teacher decision to stay
• (B) The teacher home address alone
• (C) The number of public holidays in the year
• (D) Pupil behaviour in a single class

Q55. A school experiences high staff turnover: several teachers leave every year and new teachers constantly need induction. The most direct cost of this turnover for pupils is that:

• (A) Teaching becomes disrupted and relationships with pupils must be rebuilt repeatedly
• (B) New teachers need more classroom resources than experienced teachers
• (C) Pupils’ families become less willing to support school events
• (D) The timetable must be rewritten more often, because new teachers prefer different subjects

Q56. A headteacher reduces turnover by improving induction, spreading duties fairly, recognizing good work and creating a clear path to senior teacher roles. This package works mainly because it addresses:

• (A) Several retention factors together, rather than a single factor alone
• (B) Only the salary scale for new teachers
• (C) Only the school admission policy
• (D) Only the timetable for one subject

Q57. A teacher is given 30 teaching periods a week, plus daily bus duty, examination marking and club supervision, while a colleague with the same subject teaches 18 periods with no extra duties. The imbalance is most likely to damage:

• (A) The colleague timetable, which is too light to matter
• (B) The district audit schedule
• (C) The school fee collection system
• (D) Morale and lesson quality of the overloaded teacher

Q58. When planning workload, a wise headteacher counts not only classroom periods but also preparation, marking, meetings and pastoral duties. This fuller counting matters because:

• (A) Classroom periods are the only real work teachers do
• (B) Hidden duties can make a timetable that looks fair on paper deeply unfair in practice
• (C) Marking should never be counted as work
• (D) Meetings are not part of a teacher job

Q59. A school conducts an exit interview with every departing teacher, asking why they leave and what could have kept them. The main management value of exit interviews is that they:

• (A) Prevent any teacher from ever leaving again
• (B) Provide evidence about patterns in turnover that the school can act on
• (C) Replace the need for induction and appraisal
• (D) Increase the salary of remaining teachers automatically

Q60. A school retains experienced teachers by offering them mentoring roles, subject leadership and funded training, rather than only raising pay. This strategy reflects the understanding that retention also depends on:

• (A) Appointing new teachers every term
• (B) Reducing the number of pupils in the school
• (C) Closing the school during examination season
• (D) Professional growth and recognition, not pay alone