Q1. A school committee approves a budget in March, but by October it finds that textbook prices and transport costs have risen well above the estimates. The committee decision to revise the estimates mid-year shows that a budget should be treated as:

• (A) A fixed document that can never be changed once approved
• (B) A record of last year spending only
• (C) A flexible plan that can be reviewed and adjusted when conditions change
• (D) A substitute for keeping daily cash records

Q2. A headteacher argues that the budget is not only a financial document but also a planning tool. The strongest support for this view is that preparing a budget forces the school to:

• (A) Hide its spending from the management committee
• (B) Spend the full allocation in the first month
• (C) Avoid consulting teachers about their needs
• (D) Decide its priorities and match limited money to planned activities

Q3. In a line-item budget, the headteacher finds that the stationery head is overspent while the furniture head is underspent, but the rules do not allow a transfer. This rigidity is best described as a:

• (A) Strength of programme budgeting
• (B) Limitation of line-item budgeting, which restricts movement between heads
• (C) Feature of zero-based budgeting
• (D) Result of performance-based funding

Q4. A district compares two schools: one budgets by objects such as salaries and paper, the other budgets by its remedial, library and sports programmes. The second school can more easily answer which management question?

• (A) How much paper was bought in March?
• (B) What is the salary of one clerk?
• (C) What does each programme cost and what does it achieve?
• (D) How many chairs are in the store room?

Q5. A school using zero-based budgeting asks its library in-charge to justify the purchase of new reference books, even though the library received the same amount last year. The in-charge should respond by:

• (A) Pointing to last year allocation as sufficient justification
• (B) Explaining the current need, the pupils served and the benefit of the books
• (C) Refusing to provide any information about library use
• (D) Asking for double the amount without explanation

Q6. A school is rewarded with extra funds after it raises attendance from 78 percent to 90 percent and improves reading scores. This funding decision is most consistent with:

• (A) Performance-based budgeting, which links funds to measured improvement
• (B) Line-item budgeting, which fixes spending by objects
• (C) Incremental budgeting, which adds a fixed percentage each year
• (D) Capital budgeting, which funds buildings only

Q7. A headteacher who uses incremental budgeting year after year is most likely to keep funding an activity that is no longer useful, because incremental budgeting:

• (A) Requires every activity to be justified from zero
• (B) Groups all spending by programme outcomes
• (C) Links funding strictly to examination results
• (D) Starts from the existing base and rarely questions continuing activities

Q8. Which situation best illustrates the main cost of zero-based budgeting for a large school?

• (A) The budget is approved too quickly without discussion
• (B) No record is kept of how money is spent
• (C) Preparing fresh justifications for every item takes considerable staff time and effort
• (D) Funds cannot be linked to any programme

Q9. A school plans a three-year budget for a new computer room, showing building work in year one, equipment in year two and maintenance in year three. This multi-year view is most useful because it:

• (A) Removes the need for an annual budget
• (B) Shows future commitments that a single-year budget might hide
• (C) Guarantees that prices will not change
• (D) Allows spending without committee approval

Q10. A budget that plans spending above expected income, leaving a gap to be covered by reserves or borrowing, is best described as a:

• (A) Balanced budget, in which income equals spending
• (B) Surplus budget, in which income exceeds spending
• (C) Deficit budget, in which planned spending exceeds expected income
• (D) Recurring budget, which covers daily running costs

Q11. A school keeps a separate estimate for one-off building repairs and another for salaries and consumables. The reason for keeping them separate is that capital and recurring spending differ in that:

• (A) Capital spending must be repeated every week
• (B) Capital spending is never audited, while recurring spending always is
• (C) Recurring spending is decided only by pupils
• (D) Capital spending creates lasting assets, while recurring spending meets ongoing needs

Q12. When a budget is prepared, teachers are asked to submit estimates for their departments before the committee finalizes the total. This bottom-up step improves the budget mainly because it:

• (A) Removes the committee role entirely
• (B) Draws on the detailed knowledge of those who will spend the money
• (C) Guarantees that every request will be funded in full
• (D) Prevents any later audit of spending

Q13. A government school receives a grant for salaries, a grant for building maintenance, and a small school fund from approved charges. The headteacher must be careful because the two grants may have different:

• (A) Colours of the forms used to claim them
• (B) Effects on pupil attendance
• (C) Conditions and permitted uses, which must be followed separately
• (D) Requirements for parent signatures only

Q14. A school in a low-income area raises fees sharply to cover a deficit, and enrolment falls as families withdraw their children. This outcome illustrates that fee policy must consider:

• (A) Affordability and access, since high fees can exclude the pupils the school serves
• (B) Only the cost of textbooks in one subject
• (C) The preferences of the wealthiest parents alone
• (D) The number of classrooms, regardless of who can pay

Q15. A school issues numbered receipts for every fee payment, deposits cash in the bank daily, and reconciles the fee register with bank statements each month. Together, these steps form a system of:

• (A) Fee secrecy, because parents cannot see the register
• (B) Zero-based budgeting, which starts from zero
• (C) Performance budgeting, which rewards results
• (D) Financial control, which traces money from receipt to bank

Q16. A school allows fees to be paid in monthly instalments for families facing hardship, with the arrangement recorded and approved. This policy is best justified as a way to:

• (A) Increase total income by charging interest on instalments
• (B) Remove the need for a fee register
• (C) Keep pupils in school while still collecting the full fee over time
• (D) Exempt hardship cases from all school rules

Q17. A school committee must prioritize among three needs: safe drinking water, a new notice board and decorative paint for the hall. Applying the principle of prioritization, the committee should fund first the need that:

• (A) Is cheapest to complete
• (B) Was requested most recently
• (C) Most affects pupil health, safety and daily learning
• (D) Is most visible to visitors

Q18. A school allocates its library budget in proportion to the number of pupils in each section and the cost of books for their subjects. This method is fairer than equal shares because it reflects:

• (A) Differences in need between sections
• (B) The age of the library building
• (C) The personal wishes of the librarian alone
• (D) The number of teachers on leave

Q19. A parent-teacher association raises funds through a fair and donates the proceeds for a school library. The school should treat this money as:

• (A) Private income of the headteacher
• (B) A community contribution to be recorded, spent for its stated purpose and reported back to donors
• (C) Money that needs no record because it was raised voluntarily
• (D) A fund that can be used for staff salaries without approval

Q20. A school spends its entire annual maintenance grant in the first term on repainting, leaving nothing for emergency repairs later in the year. The management lesson is that the school should have:

• (A) Used the grant only for salaries
• (B) Spent the grant even faster to avoid audit
• (C) Refused the grant until the year end
• (D) Phased its spending across the year and kept a reserve for emergencies

Q21. A school discovers that fee arrears are growing because no one follows up unpaid fees until the year end. The most effective management response is to:

• (A) Wait until the next session and write off all arrears
• (B) Introduce regular reminders, a clear deadline and recorded follow-up during the term
• (C) Stop teaching pupils whose fees are late
• (D) Increase fees for pupils who pay on time

Q22. When a school plans its budget, it sets aside a small contingency amount for unforeseen expenses such as a burst pipe or urgent repair. This contingency is prudent because it:

• (A) Allows spending without any approval at all
• (B) Increases the total budget every year automatically
• (C) Provides for genuine emergencies without breaking other budget heads
• (D) Replaces the need for an audit

Q23. A school committee reviews quarterly statements showing budgeted versus actual income and spending. The main value of this review is that it allows the committee to:

• (A) Detect variances early and correct course before the year ends
• (B) Avoid preparing a budget for the next year
• (C) Pay salaries without a bank record
• (D) Approve spending after it has already happened

Q24. A school receives free textbooks from the government and sells them to pupils at full price, keeping the money unrecorded. This practice violates financial accountability because:

• (A) Textbooks should never be distributed in schools
• (B) Public resources meant for pupils are being converted into unrecorded income
• (C) Pupils should pay for all learning materials
• (D) Government textbooks cannot be listed in a stock register

Q25. An auditor checks that every payment voucher is signed by the authorized officer, supported by a bill, and entered in the cash book. This checking of documents is the core of an audit because it tests whether:

• (A) The school building is large enough
• (B) Pupils attend school regularly
• (C) Spending was authorized, genuine and properly recorded
• (D) Teachers use modern teaching methods

Q26. A school headteacher keeps the cash book up to date, files all vouchers in order, and welcomes the annual audit. This attitude best reflects accountability because the headteacher:

• (A) Keeps records only for the audit week
• (B) Avoids all spending decisions
• (C) Delegates every decision to the clerk
• (D) Treats financial records as evidence to be shown, not hidden

Q27. An internal auditor in a district office reviews school accounts every term and advises headteachers on weaknesses before the external audit. The main advantage of this internal review is that it:

• (A) It provides the formal assurance that external auditors later rely on without further checks
• (B) Finds and corrects problems early, while they can still be fixed
• (C) It reduces the number of external audit visits the district must arrange each year
• (D) It allows headteachers to delay external reporting until weaknesses are resolved

Q28. An audit report notes that a school bought laboratory equipment at a price far above the market rate without seeking quotations. The audit concern is mainly about:

• (A) The colour of the equipment purchased
• (B) The number of science pupils in the school
• (C) Economy and proper procurement, since competitive quotations were not obtained
• (D) The date on which the equipment was delivered

Q29. A school total annual cost is 900,000 rupees and it enrols 450 pupils. Its unit cost is 2,000 rupees per pupil. If enrolment rises to 600 pupils with the same total cost, the new unit cost becomes:

• (A) 1,500 rupees, because 900,000 divided by 600 equals 1,500
• (B) 2,000 rupees, because unit cost never changes
• (C) 2,500 rupees, because more pupils always raise unit cost
• (D) 900,000 rupees, because total cost is the unit cost

Q30. A cost analysis shows that a small rural school has a high unit cost because fixed costs, such as the headteacher salary and building upkeep, are spread over few pupils. This finding suggests that high unit cost in small schools is often a result of:

• (A) Teachers being paid too little
• (B) Textbooks being too cheap
• (C) Pupils attending too regularly
• (D) Fixed costs divided among a small enrolment

Q31. A school needs an English teacher for senior classes. Its advertisement states the qualification, the classes to be taught and the closing date, but omits the salary scale. The advertisement is weakened mainly because candidates cannot:

• (A) Judge whether the post matches their expectations before applying
• (B) Find the school building
• (C) Know the subjects taught in the school
• (D) Attend the interview on time

Q32. A panel interviews candidates for a mathematics post but asks each candidate entirely different questions, with no common scoring. The selection is less defensible because:

• (A) Different questions make fair comparison between candidates difficult
• (B) Interviews should never include subject questions
• (C) Candidates should be selected by age alone
• (D) Scoring guides always favour senior candidates

Q33. A school checks a candidate previous employment, contacts referees, and confirms the teaching certificate before issuing an appointment letter. This sequence protects the school because appointment follows:

• (A) The availability of a vacant classroom
• (B) The candidate personal request for early joining
• (C) A single telephone call with no record
• (D) Verification of claims and background, not interview impression alone

Q34. A newly appointed teacher is given a handbook covering the timetable, leave rules, assessment calendar and safety procedures, and meets the heads of departments in the first week. This orientation package is valuable because it:

• (A) Replaces the need for any teaching qualification
• (B) Guarantees promotion within one year
• (C) Gives the newcomer the rules, routines and contacts needed to work confidently
• (D) Removes the need for classroom observation

Q35. A mentor teacher is assigned to a new teacher but never observes lessons, never meets the teacher, and offers no feedback. The mentoring arrangement fails mainly because mentoring requires:

• (A) Regular contact, observation and constructive feedback
• (B) A formal title without any duties
• (C) The mentor to teach the new teacher classes
• (D) The new teacher to avoid asking questions

Q36. A school fills a vacancy by transferring a teacher from another branch who already knows the school curriculum and discipline system. The main advantage of this internal transfer is that the teacher:

• (A) Needs no induction at all in the new branch
• (B) Can start productively sooner, with less orientation to the system
• (C) Automatically receives a higher salary
• (D) Is exempt from appraisal for three years

Q37. During selection for a primary post, a panel gives extra weight to a candidate ability to manage young children, use simple language and organize play-based activities. This weighting is appropriate because selection criteria should reflect:

• (A) The actual demands of the post, not a generic idea of a good teacher
• (B) The panel personal hobbies
• (C) The candidate age and home town
• (D) The number of certificates a candidate holds, regardless of relevance

Q38. A school advertises a post widely, receives 80 applications, and shortlists 8 candidates using the published criteria. A rejected applicant asks why she was not shortlisted. The fairest response is to:

• (A) Refuse any explanation and discard her application
• (B) Explain, in general terms, how the published criteria were applied
• (C) Offer her the post without an interview
• (D) Change the criteria after selection is complete

Q39. A probation review finds that a new teacher plans well but struggles with classroom discipline. The most constructive probation outcome is to:

• (A) Confirm the teacher without comment and ignore the weakness
• (B) Transfer the teacher to an office post immediately
• (C) Extend support, such as mentoring and behaviour-management training, with a clear review date
• (D) Reduce the teacher salary as a punishment

Q40. A selection panel discovers after appointment that a teacher had overstated teaching experience on the application. The school most serious concern is that the appointment was based on:

• (A) The school location and building size
• (B) The candidate handwriting on the form
• (C) The number of interview questions asked
• (D) Incomplete verification, which allowed a false claim to affect selection

Q41. A headteacher introduces a one-week induction programme for all new teachers, covering lesson planning, assessment, discipline and parent communication. The programme is most likely to reduce early resignations because new teachers who are well inducted tend to feel:

• (A) More confident, supported and clear about expectations
• (B) New teachers spend less time on lesson planning because routines are already set
• (C) New teachers are assessed more leniently during their first year
• (D) New teachers receive fewer classroom observations than teachers who missed induction

Q42. When recruiting, a school distinguishes between essential criteria, which every candidate must meet, and desirable criteria, which strengthen an application. This distinction helps the panel to:

• (A) Shortlist fairly, by first applying essentials and then weighing desirables
• (B) Appoint the oldest applicant automatically
• (C) Ignore qualifications entirely
• (D) Interview every applicant regardless of suitability

Q43. An appraisal meeting reviews a teacher lesson observations, pupil progress and contribution to department work, then sets two development goals for the next term. This meeting is effective mainly because it is based on:

• (A) The teacher length of service alone
• (B) A single examination result alone
• (C) The appraiser personal opinion without evidence
• (D) Multiple sources of evidence and forward-looking goals

Q44. A teacher is appraised by the headteacher, a peer observer and through pupil feedback, rather than by one person alone. Using several appraisers improves appraisal mainly by:

• (A) Increasing paperwork without benefit
• (B) Reducing the influence of any single observer bias
• (C) Guaranteeing promotion for the teacher
• (D) Removing the need for lesson observation

Q45. A school appraisal system is used only to decide dismissals, never to plan training or support. Teachers therefore hide weaknesses and avoid asking for help. The system fails as a development tool because its purpose is perceived as:

• (A) Supportive and formative
• (B) Too focused on pupil learning
• (C) Punitive only, which discourages honesty and growth
• (D) Based on too much evidence

Q46. A teacher completes a workshop on questioning techniques, tries the techniques in class, and discusses the results with a colleague. This sequence shows professional development working as a cycle of:

• (A) Learning, classroom trial and reflection
• (B) Attendance alone, with no classroom follow-up
• (C) Promotion without any change in practice
• (D) Inspection without feedback

Q47. A school identifies through appraisal that several teachers struggle with teaching mixed-ability classes. It organizes targeted in-service training on differentiation for those teachers. This response is sound because training is:

• (A) Used as a punishment for weak appraisal
• (B) Offered to every teacher in the district regardless of need
• (C) Delivered only as a lecture with no practice
• (D) Linked to an identified need, rather than chosen at random

Q48. A teacher is motivated by a sense of achievement when pupils grasp a difficult concept, by responsibility for a department project, and by recognition from the headteacher. These motivators are mainly:

• (A) Hygiene factors, such as salary and working conditions
• (B) Intrinsic and recognition-based motivators, linked to the work itself
• (C) Punishments that prevent poor performance
• (D) External controls imposed by inspection

Q49. A school improves staff rooms, fixes heating and ensures salaries are paid on time, yet teachers still report low motivation because their work is unrecognized and they have no autonomy. This pattern fits the distinction between:

• (A) Conditions that prevent dissatisfaction and factors that actively motivate
• (B) Appraisal and recruitment as identical processes
• (C) Budgeting and auditing as identical processes
• (D) Induction and probation as identical processes

Q50. A headteacher involves teachers in setting school improvement targets, then shares progress openly each term. This participation is likely to raise motivation because teachers who help set targets tend to feel:

• (A) Ownership of the goals and commitment to achieving them
• (B) Less responsible for pupil outcomes
• (C) Free to ignore the targets they set
• (D) Less interested in their own development

Q51. A teacher with strong subject knowledge is given no opportunity to lead, mentor others or attend advanced training, and gradually loses enthusiasm. The school is failing to sustain motivation through:

• (A) Moving the teacher to a different subject
• (B) Reducing the teacher salary
• (C) Increasing the teacher marking load
• (D) Growth and recognition opportunities for capable staff

Q52. In appraisal, a headteacher rates every teacher as excellent to avoid difficult conversations, even though lesson observations show wide differences. This appraisal error is known as:

• (A) Leniency error, because ratings are inflated and differences are hidden
• (B) Halo effect, because one strength colours all ratings
• (C) Central tendency, because all ratings cluster in the middle
• (D) Recency error, because only recent events are remembered

Q53. A headteacher reviews timetables and finds that one department carries heavy examination marking because it teaches the largest classes, while another department has light marking but many free periods. A fair response is to:

• (A) Ignore the difference, since timetables are fixed
• (B) Rebalance duties, for example by sharing invigilation or supervision fairly
• (C) Give the overloaded department even more duties
• (D) Reduce the overloaded department salary

Q54. A teacher leaves for a nearby school offering the same salary but smaller classes, a mentor and a clear promotion route. This move shows that retention is influenced by:

• (A) Salary alone, since pay was identical
• (B) The distance to the new school alone
• (C) Working conditions, support and career prospects as well as pay
• (D) The colour of the new school building

Q55. A school tracks turnover each year and finds that most leavers depart within their first two years. The school should focus its retention effort most on:

• (A) Mentoring for all staff regardless of experience, spread evenly across the school
• (B) Early-career support, induction and mentoring in the first two years
• (C) Improved induction for new teachers combined with reduced teaching loads for senior staff
• (D) A general pay increase for all teachers, regardless of career stage

Q56. High turnover harms a school budget as well as its teaching, because each departure brings costs for:

• (A) Paying examination fees for pupils
• (B) Increasing the salaries of all remaining teachers automatically
• (C) Building new classrooms for new staff
• (D) Advertising, selection, induction and training of a replacement

Q57. A headteacher protects planning time by limiting unnecessary meetings, sharing administrative tasks, and keeping one period a week free for preparation. This protection matters because teachers without planning time tend to:

• (A) Teach better lessons with less preparation
• (B) Rely on unprepared lessons, which lowers teaching quality
• (C) Mark pupils work more quickly
• (D) Need less subject knowledge

Q58. A school introduces flexible duties for a teacher returning from leave, such as a reduced extra-duty load for one term, to help her settle back. This adjustment supports retention by:

• (A) Removing appraisal for the returning teacher
• (B) Exempting the teacher from all teaching permanently
• (C) Increasing the load on all other teachers permanently
• (D) Showing that workload can adapt to a teacher changing circumstances

Q59. Exit interviews over three years repeatedly cite poor communication from leadership and unclear expectations as reasons for leaving. The school leadership should treat this pattern as:

• (A) A personal complaint by one teacher, to be ignored
• (B) Proof that exit interviews should be stopped
• (C) Evidence of a leadership issue to address through clearer communication and expectations
• (D) A reason to increase fees

Q60. A school retains its best teachers for many years by combining fair pay, manageable workload, recognition, development and a voice in decisions. This combination succeeds because retention is best achieved by:

• (A) A single incentive, such as a one-off bonus
• (B) Promising promotion to every teacher within a year
• (C) Preventing teachers from applying elsewhere
• (D) A package of pay, workload, recognition, growth and participation together