CBSE Class 12 Business Studies Planning MCQs

Question: Rearrange the steps in the decision-making process logically.

A. Identification of a problem

B. Identification of decision criteria

C. Allocation of weights to criteria

D. Development of alternatives

E. Analysis of alternatives

F. Selection of an alternative

G. Implementation of the alternative

a. GFEDCBA
b. CDBAFEG
c. ABCDEFG
d. GCDABEF

Answer: C

Question: State true or false:

Managers when plan, organise, lead and control are called decision makers.
a. True
b. False

Answer: A

Question: Which of the following is an assumption of rationality to rationale decision making?
a. Preferences are clear
b. Final choice will maximize pay off
c. The problem is clear and unambiguous
d. All of the above

Answer: D

Question: Is accepting solutions that are "good enough".
a. Bounded rationality
b. Satisfying
c. Escalation of commitment
d. None of the above

Answer: B

Question: Making decisions on the basis of experience, feelings and accumulated judgement is called as
a. Decision making
b. Structured problems
c. Intuitive decision making
d. None of the above

Answer: C

Question. The very first Five year plan of India was based on the model of: 
a. Harrod - Domar model
b. Mahalanobis model
c. Bombay plan
d. All of the above

Answer: A

Question. Planning commission was established by Government of India in: 
a. March 1950
b. April 1951
c. May 1950
d. January 1950

Answer: A

Question. The power and function of the Panchayats are enlisted in_ of the Constitution. 
a. Tenth schedule
b. Eleventh schedule
c. Twelfth schedule
d. Thirteenth schedule.

Answer: B

Question: Which software provides key performance indicators to help managers monitor efficiency of projects and employees?
a. Management Information System
b. Business Performance Management
c. Enterprise Application Software
d. Online analytical Processing

Answer: B

Question: Is a rule of thumb that managers use to simplify decision making.
a. Sunk costs
b. Framing
c. Heuristics
d. None of the above

Answer: C

Question: State true or false.

Availability bias is when decisions makers tend to remember events that are most recent.
a. True
b. False

Answer: A

Question: Which of the following quality a manager must possess to succeed in planning?
a. Reflective Thinking
b. Imagination
c. Farsightedness
d. All of these

Answer: D

Question: Plan which is firstly discussed in business plan is mostly
a. Marketing plan
b. Financial planning
c. Personnel plan
d. Production plan

Answer: A

Question. What is the annual rate aimed at in the Eight Five year plan :
a. 5.6%
b. 6%
c. 7%( but achieve 6.7%)

Answer: A

Question. From which country India adopted the Five year plans: 
a. USSR
b. USA
c. Australia
d. Germany

Answer: A

Question. ‘All other managerial functions are performed within the framework of the plans drawn. Thus, it can be said that planning preceeds other functions.’’ This statement describes which function of planning?
a. Planning focuses on achieving objectives
b. Planning is pervasive
c. Primacy of planning
d. Planning is futuristic

Answer : C

Question. In financial plans, the risk-return trade-off is very common. The more risky the investment, the higher the returns it is likely to give. To evaluate such proposals, detailed calculations of earnings, earnings per share, interest, taxes, dividends are made and decisions taken. Identify the step of planning function of management highlighted above.
a. Setting objectives
b. Developing premises
c. Identifying alternative courses of action
d. Evaluating alternative courses

Answer : D

Question. For the two statements given below, choose the correct option Statement I Planning seeks to bridge the gap between where we are and where we want to go.
Statement II Planning is basically an intellectual activity of thinking.
Alternatives
a. Statement I is correct and Statement II is incorrect.
b. Statement II is correct and Statement I is incorrect.
c. Both the statements are correct.
d. Both the statements are incorrect.

Answer : C

Question. An ideal plan would be one which is most profitable, most feasible and has the least..........
a. positive consequences
b. negative consequences
c. alternatives
d. None of these

Answer: B

Question. On the introduction of ‘Goods and Services Tax Act’, experts in the field of business started analysing and forecasting its impact on various sectors and industries. Rakesh, an established businessman, attended a few seminars and conferences organised by such experts to familiarise himself with this information. He wanted to use these forecast and conjectures to reduce the uncertainty in making decisions for the future in his business. Name the step in the planning process that is being discussed in the above paragraph.
a. Setting objectives
b. Developing premises
c. Evaluating alternatives
d. Implementing the plan

Answer: B

Question. Reliable communication limited scans the business environment and adapt itself to the changes in the environment, yet it becomes difficult to foresee the future trends. Which limitation of planning is related to the above statement?
a. Planning may not work in the dynamic environment
b. Planning reduces creativity
c. Planning is a time consuming process
d. Planning does not guarantee success

Answer: A

Question. Which of the following is correct statement?
a. Planning requires systematic and logical thinking rather than guess work.
b. The scope for planning is same at all levels.
c. Planning is an exclusive function of top management.
d. Time factor should not be taken into consideration during planning.

Answer: A

Question. Identify the correct sequence of steps in the process of planning.
(i) Evaluating alternative courses of action
(ii) Implementing the plan
(iii) Developing premises
(iv) Follow up
a. (i), (ii), (iii), (iv)
b. (ii), (iii), (iv), (i)
c. (iii), (i), (ii), (iv)
d. (ii), (i), (iv), (iii)

Answer : C

Question. Plans are made for a specific time period. At the end of such time period, new plans have to be drawn. Identify the feature of planning.
a. Planning is pervasive
b. Planning is futuristic
c. Planning involves decision-making
d. Planning is continuous

Answer : D

Question. Planning gives direction, reduces the impact of change, minimises waste and redundancy and
a. establishes chaos among departments
b. sets the basis used for promotion of individuals within the organisation
c. planning guarantees safeguard from external environment
d. sets the standards used in controlling

Answer : D

Question. Panchayati Raj system was first adopted by the state 
a. Uttar Pradesh
b. Gujrat
c. Rajasthan
d. Goa.

Answer: C

Question. Economic planning refers to : 
a. The allocation of resources
b. The planning of man power
c. The mobilisation of taxes
d. The mobilisation of both taxes and man power

Answer: A

Question:  First step in planning process is to
a. Setting an objectives
b. Evaluate alternative
c. Determine strength and weakness
d. None of the above.

Answer: A