CBSE Class 12 Business Studies Planning MCQs Set E

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

Question: Local Self Government intends to improve
a) Economic condition
b) Social condition
c) Both economic and social condition
d) None of these
Answer: c

Question: Which of the following statements is NOT correct?
a) Planning is required at top-level management only
b) Planning facilitates decision-making
c) Planning is a time-consuming process
d) All are correct
Answer: a

Question: Making assumptions for future is called
a) Making derivative plans
b) Making policy
c) Setting planning premises
d) All of the above
Answer: c

Question: Planning cannot foresee everything, and thus, there may be obstacles to effective planning. Identify the related 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

Question: Suhani, a home science graduate, wished to start a business of health food. After analysing and weighing different options, she decided to sell ‘ready-to-make’ shakes. Which function of management is being discussed?
a) Planning
b) Organising
c) Directing
d) Controlling
Answer: a

Question: In a business organisation, managers are comparing with standards to know whether the goals are achieved or not.
a) Risk
b) Ideas
c) Actual performance
d) Costs
Answer: c

Question: Panchayati Raj is a
a) Two-tier system
b) Three-tier system
c) Four-tier system
d) None of the above
Answer: b

Question: A rolling plan refers to a plan which
a) Does not change its target every year
b) Changes its allocation every year
c) Changes its allocation and target every year
d) Changes only its target every year
Answer: c

Question: Planning requires logical and systematic thinking rather than guesswork 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

Question: Planning Commission was scrapped on
a) 2015
b) 2014
c) 2017
d) 2012
Answer: b

Question: Which particular stage of the planning process is being completed when managers identify several possible courses of action?
a) Setting objectives
b) Developing premises
c) Identifying alternative courses of action
d) Evaluating alternative courses
Answer: c

Question: Planning provides direction is a
a) Importance of planning
b) Limitation of planning
c) Characteristic of planning
d) Method
Answer: a

Question: During partition, Kundan Lal decided to set up his own film studio. His manager Jimmy failed to forecast events, leading to confusion and conflict. Which function of management did Jimmy fail to perform?
a) Planning
b) Directing
c) Controlling
d) Staffing
Answer: a

Question: Super Fine Rice Ltd. continued using old plans despite market changes. Which limitation of planning is indicated here?
a) Planning creates rigidity
b) Planning reduces creativity
c) Planning involves huge costs
d) Planning does not guarantee success
Answer: d

Question: Planning is required for all managers at all levels and in all types of organisations. Identify the feature of planning.
a) Planning focuses on achieving objectives
b) Planning is pervasive
c) Planning is futuristic
d) Planning is continuous
Answer: b

Question: Mr. Ram, CEO of a company, instructed that while preparing next year’s plans, the likelihood of raw material availability and increased bank interest rates must be kept in mind. Which stage of planning is this?
a) Setting objectives
b) Developing premises
c) Identifying alternative courses of action
d) Evaluating alternative courses
Answer: b

Question: Generally, it is thought that a plan is framed, implemented, and followed by another plan. Identify the feature of planning discussed here.
a) Planning is continuous
b) Planning is futuristic
c) Planning involves decision making
d) Planning is pervasive
Answer: a

Question: Mrs. Madhvi Bhire studied both options deeply with the help of specialists and decided to produce the product in her company itself. Identify the stage of planning process.
a) Evaluating alternative courses
b) Selecting an alternative
c) Implementing the plan
d) Follow-up action
Answer: b

Question: Planning is futuristic.
a) False
b) True
c) Can’t say
d) None of these
Answer: b

Fill In The Blanks:

Question: Specific statements to tell what is to be done is called as_______ .
Answer: rule

Question: The positive and negative aspects of each proposal need to be ________ in the light of the objective to be achieved.
Answer: Evaluated

Question: Planning requires taking _______ since it involves making a choice from options.
Answer: decision

Question: Useless and redundant activities are minimized or _________ by Planning.
Answer: Eliminiated

Question: Planning involves setting _______ and predicting future conditions.
Answer: Targets

Match the following:

Question:

1. Planning is required at all levels of management as well as in all                   a. Planning focuses on achieving objectives
   departments of the organization.
2. Plans are redrawn at the end of the period and new plans are drawnb. Planning focuses on achieving objectives
   on the basis of new requirements and future conditions b. Planning focuses on achieving objectivesb. Planning is pervasive.
                                                                                                                                                c. Planning is continuous
Answer: 1-b, 2-c

Question:

1. It implies peeping into the future, analyzing it and predicting it.                   a. Planning is pervasive
2. Planning is required at all levels of management as well as in all                b. Planning focuses on achieving objectives 
    departments of the organization. 
                                                                                                                        c. Planning is futuristic
Answer: 1-c, 2-a

Question:

1. Planning has no meaning unless it contributes to the achievement             a. Planning is futuristic
    of predetermined organizational goals.
2. It implies peeping into the future, analyzing it and predicting it.                   b. Planning focuses on achieving objectives
                                                                                                                          c. Planning is continuous
Answer: 1-b, 2-a

Question:

1. Plans are redrawn at the end of the period and new plans are drawn
   on the basis of new requirements and future conditions                                                                                      a. Planning focuses on achieving objectives
2. Planning has no meaning unless it contributes to the achievement of predetermined organizational goals.     b. Planning is futuristic
                                                                                                                                                                                c. Planning is continuous.
Answer: 1-c, 2-a

Question:

1. The manager makes a choice from amongst various alternative            a. Reduces risk of uncertainty
   courses of action. 
2. Planning is a prerequisite for controlling                                                 b. Facilitates decision making
                                                                                                                    c. Establishes standards for controlling
Answer: 1-b, 2-c