CBSE Class 12 Business Studies Planning VBQs Set 03

Question. The manager Mr. Rehman strictly adheres to the plan that lays down maximum of 10% discount to be offered to customer on salt of goods. But Mr. Rehman could not provide a 10.5% discount on a large order to an old customer Mr. ‘Ram when he demanded a discount. The firm lost the large order and hence incurred losses. Which limitation of planning is reflected here ? How can this limitation be overcome?
(a) Planning is rigid
(b) Planning does not work in dynamic environment
(c) Planning reduces creativity
(d) Planning involves huge cost.
Answer: (a) Planning is rigid

Question. Brij wants to start a business of tour and travels. His friend Suman told him to perform planning as a function of management as it precedes all functions of management i.e., organizing, staffing, directing & controlling. Identify the feature of planning referred 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. What resources are specially kept in view in planning?
(a) Limited
(b) Unlimited
(c) Both(a) and (b)
(d) None of the options
Answer: (a) Limited

Question. Planning involves setting targets and predicting future conditions, thus helping in making a choice. Which importance of planning is highlighted in the above statement?
(a) Planning provides direction
(b) Planning recues overlapping and wasteful activities
(c) Planning reduces the risk of uncertainty
(d) Planning facilitates decision making
Answer: (d) Planning facilitates decision making

Question. Sales forecasting is the basis on which a business firm prepares its annual plan for production and sales which features 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 futuristic
Answer: (d) Planning is futuristic

Question. Planning requires logical and systematic thinking rather than queswork or wishful thinking which features of planning is highlighted in the above case?
(a) Planning focuses on achieving objectives
(b) Planning is a mental exercise
(c) Planning is the primary function of management
(d) Planning is pervasive
Answer: (b) Planning is a mental exercise

Question. Which of the following is an assumption of rationality to rationale decision making?
(a) Preferences are clear
(b) Final choice will maximise payoff
(c) The problem is clear and unambiguous
(d) All of the options
Answer: (b) Final choice will maximise payoff

Question. Planning is:
(a) Flexible
(b) Stable
(c) Rigid
(d) None of the options
Answer: (a) Flexible

Question. Suresh is giving a speech to the workers of his factory. He is the owner of a toy manufacturing factory and has 123 workers. He tells them that this year’s target of production is 7.5 lakh toys. Which step in planning process is highlighted in the case?
(a) Implementing the plan
(b) Setting objectives
(c) Comparing alternative plans
(d) None of the options
Answer: (b) Setting objectives

Question. Indian Drugs and Pharmaceuticals Ltd.’ is engaged in the manufacturing and distribution of medicines. The company has set-up an objective of increasing its sales turnover by 20%. To achieve this objective the company has decided to diversify into baby health care products. Accordingly, the company has identified various alternative courses of actions for the diversification process. They divided this process by determining the positives and the negatives and selected the ideal plan which is the most feasible and profitable. Which steps of planning have been followed in the above case:
(a) Identifying alternatives
(b) Following up action
(c) Selecting an alternative
(d) Both (a) and (c)
Answer: (d) Both (a) and (c)

Ajeet is an energetic manager who makes plans and policies for his Department. He tries to make best plans, for this he uses foresightedness and imagination. He has delivered many successful projects because of his good plans. He always makes alternative plans and selects the best out of them after evaluating their pros and cons. However, he knows all plans cannot be successful and requires a lot of time and energy. He also knows that the business environment is dynamic, it can change. One of his friend, suggested him to take suggestions from others when he makes his plans and also consider plans made by others.

Question. At which level of Mannagement, does Ajeet works:
(a) Top Level Management
(b) Middle Level Management
(c) Lower Level Management
(d) None of the options
Answer: (b) Middle Level Management

Question. “Planning involves foresightedness and imagination”. Which feature of Planning is highlighted here?
(a) Mental exercise
(b) Forward looking
(c) Decision making
(d) None of the options
Answer: (a) Mental exercise

Question. “He always makes alternative plans and selects the best out of them after evaluating their pros and cons.” Which feature of planning is being highlighted here?
(a) Forward Looking
(b) Decision Making
(c) Both (a) and (b)
(d) None of the options
Answer: (b) Decision Making

Question. “Planning requires lot of time and cost”. This is one of ___________ of planning.
(a) Advantages
(b) Disadvantages
(c) It can be both (a) and (b)
(d) None of the options
Answer: (b) Disadvantages

Question. __________is 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) Organising
(b) Controlling
(c) Planning
(d) Directing
Answer: (c) Planning

Question. Amit is a CEO of the bookmybus.com. here planning is mainly done by top management. He did not involve middle level and operational level in the strategy and policies formulation and even they can’t act on their own. The limitation of planning mentioned here is_____
(a) Planning may not guarantee success
(b) Planning may not work in a dynamic environment
(c) Planning involves huge cost
(d) Planning reduces creativity
Answer: (d) Planning reduces creativity

Question. ABC Ltd. is a reputed company. They had devoted a lot of time and money to its plan. The limitation of planning mentioned here is___________
(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: (c) Planning involves huge cost

Question. Planning requires logical and systematic thinking rather than guess work or wishful thinking. The feature of planning given here is___________
(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 provides _________________ and reduces the risk of uncertainty. Planning helps managers in many other ways.”
(a) actions
(b) directions
(c) coordination
(d) None of the options
Answer: (b) directions

Question. Planning cannot be done in the absence of _________?
(a) strategies
(b) objectives
(c) controlling
(d) policies
Answer: (b) objectives

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. Planning is a (i)______activity but not a (ii)________ activity.
(a) (i) mental (ii) physical
(b) (i) physical (ii) mental
(c) (i) physical (ii) subjective
(d) (i) subjective (ii) objective
Answer: (a) (i) mental (ii) physical

Question. Match Column-I (major benefits of planning) with Column- II (Respective Meaning) , then select the correct answers from the option given below :
Column I
(A) Planning provides directions.
(B) Planning reduces the risks of uncertainty.
(C) Planning reduces overlapping and wasteful activities.
(D) Planning promotes innovative ideas.
Column II
(i) By stating in advance how work is to be done planning provides direction for action.
(ii) Since planning is the first function of management, new ideas can take the shape of concrete plans.
(iii) Planning is an activity which enables a manager to look ahead and anticipate changes.
(iv) Planning serves as the basis of coordinating the activities and efforts of different divisions, departments and individuals.
(A) (B) (C) (D)
(a) (ii) (i) (iii) (iv)
(b) (i) (iii) (iv) (ii)
(c) (i) (ii) (iii) (iv)
(d) (iv) (iii) (ii) (i)
Answer: (b) (i) (iii) (iv) (ii)

Question. Match Column A (Certain logical steps for every manager) with Column B ( Certain meaning/ activity) then select the correct answers from the option given below :
Column I
(A) Setting Objectives
(B) Developing Premises
(C) Identifying alternative courses of action
(D) Evaluating alternative courses.
Column II
(i) The next step is to weigh the pros and cons of each alternative. Each course will have many variables which have to be weighed against each other.
(ii) Once objectives are set, assumptions are made. Then the next step would be to act upon them.
(iii) The first and foremost step is setting objectives.
(iv) Planning is concerned with the future which is uncertain and every planner is using conjecture about what might happen in future.
(A) (B) (C) (D)
(a) (iii) (iv) (ii) (i)
(b) (i) (iii) (iv) (ii)
(c) (iv) (iii) (ii) (i)
(d) (i) (ii) (iii) (iv)
Answer: (a) (iii) (iv) (ii) (i)

Question. Match Column-I (Types of Plans) with Column- II (Respective Meaning) then select the correct answers from the option given below :
Column I
(A) Single-use and standing plans
(B) Single-use Plan
(C) Standing Plan
(D) Programme Plan
Column II
(i) An organisation has to prepare a plan before making any decision related to business operation, or undertaking any project.
(ii) Programmes are detailed statements about a project which outlines the objectives, policies, procedures, rules, tasks, human and physical resources required and the budget to implement any course of action.
(iii) A single-use plan is developed for a one-time event or project. Such a course of action is not likely to be repeated in future, i.e., they are for non-recurring situations
(iv) A standing plan is used for activities that occur regularly over a period of time. It is designed to ensure that internal operations of an organisation run smoothly.
(A) (B) (C) (D)
(a) (ii) (iii) (iv) (i)
(b) (i) (iii) (iv) (ii)
(c) (iii) (i) (iv) (ii)
(d) (i) (ii) (iii) (iv)
Answer: (b) (i) (iii) (iv) (ii)

Question. Assertion: Planning is primary function of management.
Reason: Planning is required at all levels of management.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).

Question. Assertion:Planning does not work on natural calamities.
Reason:It does not include planning for disaster management and earthquake.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (c) If assertion (A) is true, but reason (R) is false.

Question. Assertion:Planning is activity done by top management.
Reason: Most of the time subordinates not even try to formulate plans they only carry out orders.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).

Question. Assertion:Management helps the organization to achieve their goals by proper planning.
Reason: Planning is straight and follow up action is not necessary in proper planning.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (c) If assertion (A) is true, but reason (R) is false.

Question. Assertion: Standing plans is designed for particular situation.
Reason: It Required for recruitment of employees.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (c) If assertion (A) is true, but reason (R) is false.

Question. Assertion: Planning provides base for controlling and organizing.
Reason: Planning states the objectives in advance so they act as guide for deciding future actions.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).

Question. Assertion: Planning does not include alternatives.
Reason: Management should focus on achieving targets according to pre decided planning.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (d) If assertion (A) is false but reason (R) is true.

Question. Assertion: Policies may be expressed or Implied.
Reason: only expressed policies are required in writing while implied policies are followed by actions.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).