CBSE Class 12 Business Studies Case Study Questions Planning MCQs

Read the source given below and answer the following questions :
Anupam joins as a sales manager of a company dealing with garment manufacturing. Being professional in his approach, he knew that without good planning he will not be able to organise or perform any other managerial function effectively or efficiently. Only on the basis of sales forecast, he can prepare annual plan for its production or sales, besides he will have to prepare sales plan regularly on weekly, monthly, quarterly and half yearly basis. While preparing the sales forecast, he undertakes intellectual thinking, involving foresight visualisation rather than guess work and he has to make sure that all these planning activities coincide with the purpose for which business is being carried out.

Question. “He has to make sure that all these ………… business is being carried out.” This indicates which feature of planning?
(a) Planning is goal oriented.
(b) Planning is continuous.
(c) Planning is pervasive.
(d) Planning is futuristic.

Answer: A

Question. “He knew that without good planning ………… any other managerial function.” This line indicates which feature of planning?
(a) Planning is futuristic
(b) Planning is a mental exercise
(c) Planning is pervasive
(d) Planning is primary function of management

Answer: D

Question. “He will have to prepare sales plan regularly ………… half yearly basis.” This is related to which feature of planning?
(a) Planning is primary function
(b) Planning is continuous
(c) Planning is mental exercise
(d) Planning is pervasive

Answer: B

Question. “While preparing the sales forecast, he undertakes intellectual thinking involving ………… guess work.” This indicates which feature of planning?
(a) Planning is continuous.
(b) Planning is pervasive.
(c) Planning is mental exercise.
(d) Planning is primary function.

Answer: C

Read the source given below and answer the following questions :
After completing the diploma in bakery, Priya started an outlet in food court of a mall. She decided to sell five types of pizzas and low sugar muffins with proper planning. She was ready to face the uncertainties and also there was no duplication of work. In short period only her business got a name in the market.

Question. “There was no duplication of work.” This is indicating which importance of planning?
(a) Planning provides direction.
(b) Planning reduces overlapping and wasteful activities.
(c) Planning promotes innovative idea.
(d) Planning facilitates decision making.

Answer: B

Question. Identify the function of management indicated in above para.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

Answer: A

Question. “With proper planning, she was ready to face the uncertainties.” This indicates which importance of planning?
(a) Planning provides direction
(b) Planning reduces the risk of uncertainties
(c) Planning promotes innovative idea
(d) Planning facilitates decision making

Answer: B

Question. Is it worth spending money on planning?
(a) Yes
(b) No
(c) Partially true
(d) None of the above

Answer: A

Read the source given below and answer the following questions :
Super Fine Rice Ltd. has the largest share of 55% in the market. The company’s policy is to sell only for cash. In 2015, for the first time, company’s number one position in the industry has been threatened because other companies started selling rice on credit also. But the managers of Super Fine Rice Ltd. continued to rely on its previously tried and tested successful plans which didn’t work because the environment is not static. This led to decline in sales of Super Fine Rice Ltd.

Question. “For the first time, company’s ………… been threatened.” This is related to which limitation of planning?
(a) Planning reduces creativity.
(b) Planning leads to rigidity.
(c) Planning is a time consuming process.
(d) Planning does not guarantee success.

Answer: B

Question. Planning gives guarantee of success.
(a) True
(b) False
(c) Partially true
(d) None of the above

Answer: B

Question. “Manager of super fine rice continued ………… successful plan.” This is related to which limitation of planning?
(a) Planning leads to rigidity.
(b) Planning reduces creativity.
(c) Planning involves huge cost.
(d) Planning does not guarantee success.

Answer: D

Question. “Environment is not static.” This is related to which limitation of planning?
(a) Planning does not guarantee success.
(b) Planning reduces creativity.
(c) Planning may not work in dynamic environment.
(d) Planning involves huge cost.

Answer: C

Read the source given below and answer the following questions :
Simplex limited had been taken over by Mundhra Group immediately following India’s independence. Since then it enjoys a rich record of industry presence and experience. In 2005, with the aim to accelerate growth the company had gone through several rounds of meetings and discussions before launching ERP system to attract large projects. The management had done effective forecast and critical thinking regarding allocation resources to reduce wastage. For this purpose the company had laid down multiple courses of action to meet the challenge of adverse situations. In 2008, the company suffered loss in many projects due to the great recession despite taking many cost cutting measures. The management had taken utmost care regarding the possible outcome and timely review of the plans to achieve the set target during that hard time. In 2010 the system implemented successfully which subsequently helped the company to execute numerous projects with precision and timeliness. 

Question. “In 2008, the company suffered loss in many projects due to the great recession despite taking many cost cutting measures.” Which limitation of the management process is indicated here?
(a) It fails to cope with sudden changes
(b) It involves huge cost
(c) It requires critical thinking
(d) Need to construct multiple action plans

Answer: A

Question. “In 2005, with the aim to accelerate growth the company had gone through several rounds of Meetings and discussions.” What is the objective mentioned here according to the process stated here?
(a) Developing Premises
(b) Growth & development
(c) Launching IT enabled system
(d) Cost cutting

Answer: B

Question. “The management had taken utmost care regarding the possible outcome and timely review of the Plans to achieve the set target during that hard time.” Which is the last step of the Process mentioned here ?
(a) Implementation of plan
(b) Timely execution of projects
(c) Follow up
(d) To prepare alternative course of action

Answer: C

Question. State whether the given statement is True or False: “The management had done effective forecast and critical thinking regarding allocation of resources to reduce wastage.”

Answer: True

Read the source given below and answer the following questions :
The CEO of ABC limited, auto mobile enterprise dreams of his company becoming the best player in future for which he sets the objectives, forecast the future and develops various courses of action.He has also made a statement indicating sales volume for the next financial year to achieve the desired sales as highlighted in the statement. He decided to advertise in all the leading newspapers is in every state of India for the next six months, so he also wants to train his employees for achieving his sales target. As a part of the training programme for newly appointed sales executive, CEO fixes responsibility of sales managers as mentors to take the executives for visit to their existing customers and help them learn on the job.

Question. Which function of management is highlighted in the first line of the given extract?
(a) Planning
(b) Controlling
(c) Staffing
(d) None of these 

Answer: A

Question. Changes and events cannot be eliminated but they can be anticipated and managerial response to them can be developed. 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: B

Question. Sales Forecasting is the basis on which a business firm prepares its annual plan for production and sales. 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 futuristic.

Answer: D

Read the source given below and answer the following questions :
Mona inherited a 30-acres ancestral land from her grandparents. She decided to venture into agriculture, for this purpose she set out specific goals, objectives.Everything was a challenge because she was not aware about farming. She learned every activity and, in the process, thought of assisting other farmers as well. She eventually launched her own company Agro limited.She wanted to be sure that the activities effectively met the best interest of the company and the farmers.Hence, she prepared an annual plan for production, sales and marketing, through sales forecasting she’ll I realized that farmers were growing only one or two crops. On account of this the land remained idle for the rest of the year. she identified and evaluated different alternatives through which the farms could be utilized throughout the year.She used her foresight and systematic thinking,based on analysis of all fixed analysis of all the facts and examined and evaluated all the alternatives. She presented a plan to the Farmers Union, where after harvesting the primary crops, seasonal vegetables and foods could be grown.

Question. Hence she prepared an annual plan for production sales and marketing through sales forecasting. Which feature of planning is depicted in this statement?
(a) Planning is continuous
(b) planning is futuristic
(c) planning involves decision-making
(d) planning is a mental exercise

Answer: B

Question. For this purpose she set out specific goals objectives and activities which feature of planning is depicted in this statement?
(a) Planning focuses on achieving objectives
(b) planning is a primary function of management
(c) planning involves decision-making
(d) planning is a mental exercise 

Answer: A

Question. Thus, she identified and evaluated different alternatives through which the farms could be utilized throughout the year. Which feature of planning is depicted here?
(a) Planning is pervasive
(b) planning is continuous
(c) planning his futuristic
(d) planning involves decision-making 

Answer: D

Question. She used her foresight and logical and systematic thinking based on analysis of all facts and examined and evaluated all the alternatives. which feature of planning is depicted here?
(a) Planning focuses on achieving objectives
(b) planning is a primary function of management
(c) planning is mental exercise
(d) planning involves decision-making

Answer: C

Read the source given below and answer the following questions :
After completing a diploma in Bakery and Patisserie, Julie sets up a small outlet at Goa Airport to provide a healthy food option to the travellers. To begin with, she has decided to sell five types of patties, three types of pizzas and low sugar muffins in four flavours. Thus, by deciding in advance what to do and how to do, she is able to reduce the risk of uncertainty and avoid overlapping and wasteful activities. But sometimes her planning does not work due to some unavoidable circumstances like cancellation of flights due to bad weather conditions, government alert etc. which adversely affects her business. In context of the above case:

Question. Identify points highlighting the importance of planning mentioned in the above paragraph.
(a) Reduces the risk of uncertainty:
(b) Avoiding overlapping and wasteful activities
(c) a and b 
(d) None of these.

Answer: C

Question.  The limitation of planning which adversely affects Payal’s business is:
(a) Planning may not work in a dynamic environment:
(b) Planning may not guarantee success.
(c) Planning involves huge costs
(d) None of these.

Answer: A