CBSE Class 12 Business Studies Planning VBQs Set 02

Question. Name the function of management which involves setting objectives and developing appropriate courses of action to achieve these objectives.
(a) Directing
(b) Organising
(c) Planning
(d) Staffing
Answer: (c) Planning

Question. Which of the following is not the benefit of planning?
(a) Planning reduces overlapping and wasteful activities.
(b) Planning is a mental exercise.
(c) Planning provides directions.
(d) Planning reduces the risks of uncertainty.
Answer: (b) Planning is a mental exercise.

Question. Which of the following is a benefit of planning?
(a) Helps in avoiding confusion and misunderstanding.
(b) Ensures clarity in thought and action.
(c) Useless and redundant activities are minimised or eliminated.
(d) All of the options.
Answer: (d) All of the options.

Question. Which of the following statements is not true with reference to planning?
(a) Planning is a pre-requisite for controlling.
(b) Planning does not lead to rigidity.
(c) Planning enables a manager to look ahead and anticipate changes.
(d) Planning facilitates co-ordination among departments and individuals in the organisation.
Answer: (b) Planning does not lead to rigidity.

Question. What is known as the primary function of management?
(a) Controlling
(b) Organising
(c) Planning
(d) Staffing
Answer: (c) Planning

Question. Which of the following is not a feature of planning?
(a) Planning is futuristic.
(b) Planning is pervasive.
(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objectives.
Answer: (c) Planning establishes standards for controlling.

Question. All other managerial functions are performed within the framework of the plans drawn. Identify the related feature of planning.
(a) Planning focuses on achieving objectives.
(b) Planning is pervasive.
(c) Planning is futuristic.
(d) Planning is primary function of management.
Answer: (d) Planning is primary function of management.

Question. Planning requires logical and systematic thinking rather than guess work or wishful thinking. Identify the related feature of planning.
(a) Planning is futuristic.
(b) Planning is a mental exercise.
(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objectives.
Answer: (b) Planning is a mental exercise.

Question. Planning cannot foresee everything in future, and thus, there may be obstacles to effective planning. Identify the limitation of planning.
(a) Planning leads to rigidity.
(b) Planning may not work in a dynamic environment.
(c) Planning does not guarantee success.
(d) Planning reduces creativity.
Answer: (b) Planning may not work in a dynamic environment.

Question. It is not always true that just because a plan has worked before it will work again. Identify the related limitation of planning.
(a) Planning leads to rigidity.
(b) Planning reduces creativity.
(c) Planning may not work in a dynamic environment.
(d) Planning does not guarantee success.
Answer: (d) Planning does not guarantee success.

Question. Identify the correct sequence of steps involved in the planning process.
(a) Evaluating alternative courses, Identifying alternative course of actions, Setting objectives, Developing premises
(b) Setting objectives, Identifying alternative course of actions, Evaluating alternative courses, Developing premises
(c) Setting objectives, Developing premises, Identifying alternative course of actions, Evaluating alternative courses
(d) Setting objectives, Developing premises, Identifying alternative course of actions, Evaluating alternative courses
Answer: (c) Setting objectives, Developing premises, Identifying alternative course of actions, Evaluating alternative courses

Question. A strategy is a comprehensive plan which will not include this dimension:
(a) Determining long term objectives
(b) Adopting a particular course of action
(c) The ends which the management seeks to achieve by its operations
(d) Allocating resources necessary to achieve the objective
Answer: (c) The ends which the management seeks to achieve by its operations

Question. A plan is framed, implemented and followed by another plan and so on. Which feature of planning is highlighted in the above case?
(a) Planning focuses on achieving objectives
(b) Planning is a continuous process
(c) Planning is the primary function of management
(d) Planning is pervasive
Answer: (b) Planning is a continuous process

Question. Prateek has given a detailed statement of expected results in numerical terms. This plan is conveyed to the subordinates by him in a special meeting. State the type of plan mentioned here.
(a) Objective
(b) Rule
(c) Budget
(d) Method
Answer: (c) Budget

Question. Which limitation of planning suggests that the employees stop thinking and become the blind followers of the plan?
(a) Planning reduces creativity
(b) Planning does not work in dynamic nature
(c) Planning does not guarantee success
(d) Planning involves huge costs
Answer: (a) Planning reduces creativity

Question. The function of management decides what to do and how to do:
(a) Organizing
(b) Planning
(c) Directing
(d) Controlling
Answer: (b) Planning

Question. At what managerial level planning is needed?
(a) Top level
(b) Middle level
(c) Lower level
(d) All the levels
Answer: (d) All the levels

Question. ABC Ltd. is a reputed company. They had devoted a lot of time and money to its plan. Identify the limitation of planning mentioned here.
(a) Planning may not guarantee success
(b) Planning may not work in a dynamic environment
(c) Planning involves huge cost
(d) Planning is a time-consuming process
Answer: (d) Planning is a time-consuming process

Question. Name the type of plan which provides the broad contours of an organisation’s business.
(a) Programme
(b) Strategy
(c) Rule
(d) Policy
Answer: (b) Strategy

Question. To see whether plans are being implemented and activities are being performed according to the schedule, is a step of planning process. Identify the step.
(a) Implement the plan
(b) Choosing an alternative
(c) Identifying alternatives
(d) Follow up action
Answer: (d) Follow up action

Question. Planning is actually worth the huge costs involved. Do you agree?
(a) Yes
(b) No
(c) Maybe
(d) Not sure
Answer: (a) Yes

Question. Name the process of setting objectives, formulating various courses of action in order to achieve them, and selecting the best possible alternative from the various courses of action available in order to ensure completion of organisational goals.
(a) Planning
(b) Dirction
(c) Coordination
(d) Staffing
Answer: (a) Planning

Question. Sanjay runs a Chinese food chain. He conducted a meeting with his employees. He informed all the chefs, that there is a penalty of Rs. 100 per day for not wearing caps, gloves, and aprons. Identify the concept of management used here.
(a) Staffing
(b) Coordination
(c) Delegation
(d) Planning
Answer: (d) Planning

Question. Pervasiveness of planning indicates that planning:
(a) is a top management function
(b) extends throughout the organisation
(c) is a future-oriented activity
(d) is the first element of management process
Answer: (b) extends throughout the organisation

Question. In this step of planning process the pros and cons, positives, and negatives of all these alternatives should be properly considered. Identify the step of planning process.
(a) Setting objectives
(b) Developing premises
(c) Identifying alternative courses of action
(d) Evaluating alternative courses
Answer: (b) Developing premises

Question. Adarsh wants to start a business of opening a fast food chain Arti his friend, told him to perform planning as a function of management, as it precedes all functions of management, i.e., organising, staffing, directing, and controlling. Identify the feature of planning referred to here.
(a) Planning is a primary function
(b) Planning is pervasive
(c) Planning is continuous
(d) Planning is futuristic
Answer: (a) Planning is a primary function

Question. Departments and individuals in the organization are able to work in coordination. Which importance of planning is highlighted in the above statement?
(a) Planning provides direction
(b) Planning reduces overlapping and wasteful activities
(c) Planning reduces the risk of uncertainty
(d) Planning facilitates decision making
Answer: (a) Planning provides direction

Question. Changes and events cannot be eliminated but they can be anticipated and managerial response to them can be developed which importance of plannign is highlighted in the above statement?
(a) Plannign provides direction
(b) Planning reduces overlapping and wasteful activities
(c) Planning reduces the risk of uncertainty
(d) Planning facilitates decision making
Answer: (c) Planning reduces the risk of uncertainty

Question. It is the thinking process, the organised foresight, the vision based on fact and experience that is required for intelligent action. Identify the function of management.
(a) Planning
(b) Organizing
(c) Controlling
(d) Directing
Answer: (a) Planning

Question. Which one of the following is not a step of planning:
(a) To forecast
(b) Establishing objectives
(c) Valuation of objectives
(d) Induction of employees on the job
Answer: (d) Induction of employees on the job

Question. “Planning is required in all types of organisations and at all levels of management.” Identify the statement and choose the correct answer.
(a) Planning is futuristic
(b) Planning is pervasive
(c) Planning is a mental process
(d) Planning focuses on achieving objectives
Answer: (b) Planning is pervasive

Question. “It is difficult for an organisation to access future trends, taste of customers, natural calamity, competitors’ policies, and effects of changes in the different components of environment.” Identify the statement and choose the correct answer.
(a) Planning may not work in dynamic environment
(b) Planning reduces creativity
(c) Planning involves huge cost
(d) Planning is a time consuming process
Answer: (a) Planning may not work in dynamic environment

Question. Which limitation of planning suggests that the employees stop thinking and become the blind followers of the plan?
(a) Planning reduces creativity
(b) Planning does not work in dynamic environment
(c) Planning does not guarantee success
(d) Planning involves huge costs
Answer: (a) Planning reduces creativity

Question. To see whether plans are being implemented and activities are being performed according to schedule, is a step of planning process. Identify the step.
(a) Choosing an alternative
(b) Implement the plan
(c) Identifying alternatives
(d) Follow-up action
Answer: (d) Follow-up action

Question. A plan is framed, it is implemented and followed by another plan and so on. Which feature of planning is highlighted in the above case?
(a) Planning focuses on achieving objectives
(b) Planning is continuous
(c) Planning is the primary function of management
(d) Planning is pervasive
Answer: (b) Planning is continuous

Question. Which of the following is not the internal element of limitation of planning?
(a) Capital
(b) Raw material
(c) Increase in population
(d) Machine
Answer: (c) Increase in population

Question. Planning requires logical and systematic thinking rather than genuine work. Which feature of planning is highlighted here?
(a) Pervasive
(b) Futuristic
(c) Psychological activity
(d) Continuous
Answer: (c) Psychological activity

Question. Zantar Ltd., made its annual plan for the following year on the assumption that the sales of the product A, will rise in near future. However, that same year a major technological development occurred in the production of the Product a and new competitors entered the market using that technology. These two incidences led to entry of low-priced and good quality products of Product A into the market. Which function of management is considered above? Should Zantar Ltd., continue with the same plan? Which limitation of management function is reflected in the aforementioned case study?
(a) Planning is rigid
(b) Planning does not work in dynamic environment
(c) Planning redue creation
(d) Planning involves huge cost
Answer: (b) Planning does not work in dynamic environment

Question. The top management of Phospher Ltd., is engaged in organisation planning but they do not involve middle and supervisory level of management. These two levels of management are neither allowed to deviate from their plans nor are they permitted to act on their own. They keep thinking along the same lines as others so that nothing new or innovative gets added to the process. Which limitation of planning is reflected in above case? What remedial steps will Phospher Ltd. take to overcome this limitation?
(a) Planning is rigid
(b) Planning reduce creating
(c) Planning does not work in dynamic environment
(d) Planning involves huge cost
Answer: (c) Planning does not work in dynamic environment

Question. Santo Ltd., has to develop its organisational plan for the current year and for this purpose they hired professional consultants from United States. These consultants incurred a lot of money in collection of facts, figures, surveys, etc. including the salaries of the consultants. This whole process of planning has already proved to be a very costly affair and the eventual total cost may exceed the gains expected from the plan. Should Santo Ltd. continue with existing planning ? Explain with reasons. Also explain, which limitation of planning is reflected in this case?
(a) Planning is rigid
(b) Planning reduces creativity
(c) Planning does not work in dynamic environment
(d) Planning involves huge cost
Answer: (d) Planning involves huge cost