CBSE Class 12 Business Studies Planning MCQs Set 07

Question. Planning is closely related with
(a) creativity
(b) innovation
(c) both
(d) none of these
Answer: (c)

Question. All managers dream to increase their sales and strive to achieve the organisational goals but it return these dreams into reality managers need to work hard in thinking about future and in making business predictions identify the function of management highlighted in the para
(a) Controlling
(b) Organising
(c) Planning
(d) All of these
Answer: (c)

Question. Planning has no meaning unless it contributes to the achievement of predetermined organisational goals. Identify the feature of planning from above statement:
(a) planning focuses on achieving objectives
(b) Planning is futuristic
(c) planning is continuous
(d) Planning is pervasive.
Answer: (a)

Question. Objectives provide direction for all managerial decisions and actions this function of management provides a rational approach for achieving predetermined objectives and setting the targets which need to be achieved and against which actual performance is measured. Identify the function of management.
(a) Controlling
(b) Planning
(c) Both of these
Answer: (b)

Question. Planning precedes other functions as all the other managerial functions are performed within the framework of planning. Identify the feature of planning from above statement:
(a) Planning is futuristic
(b) Planning is continuous
(c) Planning is primary function of management
(d) Planning involves decision making
Answer: (c)

Question. Identify the feature of planning
(a) It leads to rigidity
(b) It reduces creativity
(c) It is pervasive
(d) It involves huge cost
Answer: (c)

Question. Planning involves thorough examination and evaluation of each alternative and choosing the most appropriate one. Identify the feature from above statement
(a) Planning is pervasive
(b) it is a mental exercise.
(c) it is continuous process.
(d) it involves decision making
Answer: (d)

Question. Competition in the market can also upset financial plans, sales targets have to be revised accordingly, cash budget also needed to be modified. Identify the limitation of planning.
(a) Planning may not work in dynamic environment
(b) Planning leads to rigidity
(c) Planning is time consuming
(d) Planning involves decision making
Answer: (a)

Question. Planning is required at all the levels of management and in all the departments of an organisation. Identify the feature of planning from above statement.
(a) Planning is pervasive
(b) Planning is futuristic
(c) Planning is continuous
(d) it involves decision making
Answer: (a)

Question. It requires application of intelligent imagination and sound judgement. it determines the action to be taken with the logical and systematic thinking. identify the feature of one of the function of management.
(a) It involves decision making.
(b) It is a mental exercise
(c) It is futuristic.
(d) It is pervasive.
Answer: (b)

Question. Which is not a feature of planning?
(a) It focuses on achieving objectives
(b) It is the primary function of management.
(c) It is pervasive.
(d) It leads to rigidity
Answer: (d)

Question. A co. is manufacturing garments. The manager wants to increase profits by purchasing new high speed machines or increasing the sale price or using waste materials in manufacturing stuffed toys. He decided that “using waste material” is the best solution for him. Identify the concept of management involved.
(a) Effectiveness
(b) Efficiency
(c) Planning
(d) All of these
Answer: (c)

Question. A manager is required to make certain assumptions about the future which may be in the form of forecast. This step of planning is known as
(a) Follow up
(b) Developing Premises
(c) Evaluating alternative courses of action
(d) Identifying alternative courses of action
Answer: (b)

Question. Rahim wanted to start with a stationery business to reach the students of schools and colleges to provide stationery to them. He felt that students were not able to get the needed stationery easily and hence wanted to provide the stationery directly in the school. He listed out the various of setting up this business and finally selected the best way to set up this business by developing the app. Suggest what should be the next step to be followed by him:
(a) Identifying alternative courses of action
(b) Evaluating alternative courses of action
(c) Implementation of plan
(d) follow up
Answer: (c)

Question. On the Introduction of GST act, experts in the field of business started analysing and forecasting its impact on various sectors and industries. Vivek, an established businessman attended a few seminar and conferences organised by such experts to familiarise himself with this information. He wanted to use these forecasts to reduce the uncertainty in making decisions for future in his business. Name the step of planning that will be followed after the step mentioned in the paragraph.
(a) Developing Premises
(b) Evaluating alternative courses of action
(c) Implementation of plan
(d) Identifying alternative courses of action
Answer: (d)

Question. Planning instructs business organisations to follow a certain methodology. If there is a deviation in the plan, there is a possibility of loss. Which one of the following limitation is indicated here:
(a) Reduces creativity
(b) Lack of flexibility
(c) May not work in dynamic environment
(d) Does not provide guarantee to success
Answer: (b)

Question. To see whether plans are being implemented and activities are being performed according to schedule in a step of planning process. Identify the step.
(a) Follow up of plan
(b) Evaluating alternative courses of action
(c) Implementation of plan
(d) Identifying alternative courses of action
Answer: (a)

Question. Planning Cannot foresee everything, thus, there may be obstacles to effective planning. Identify the related limitation.
(a) Reduces creativity
(b) Lack of flexibility
(c) May not work in dynamic environment
(d) Does not provide guarantee to success
Answer: (c)

Question. Planning requires peeping into near future, analysing it and predicting it. Identify the related feature of planning.
(a) Planning is futuristic
(b) Planning is goal oriented
(c) Planning is mental exercise
(d) Planning focuses on achieving objectives
Answer: (a)

Question. Identify the correct sequence of steps of planning process
(a) Setting objectives, Identify alternative courses of action, Implementation of plan, Evaluation of alternative courses of action
(b) Setting objectives, Implementation of plan, Evaluation of alternative courses of action, Identify alternative courses of action
(c) Setting objectives, Identify alternative courses of action, Implementation of plan, Evaluation of alternative courses of action
(d) Setting objectives, Identify alternative courses of action, Evaluation of alternative courses of action, Implementation of plan
Answer: (d)

Question. Which of the following statement not true with reference to planning?
(a) Planning is prerequisite for controlling
(b) Planning does not look into future
(c) Planning facilitates coordination in organisation
(d) Planning focuses on achieving objectives
Answer: (b)

Question. All the managerial functions are performed within the framework of the plans drawn. Identify the related feature of planning.
(a) Planning is futuristic
(b) Planning is primary function of a manager
(c) Planning is mental exercise
(d) Planning is pervasive
Answer: (b)

Question. Planning involves rational thinking to choose the best alternative among the various available alternatives in order to achieve the desired goals effectively and efficiently. Identify the related feature of planning.
(a) Planning involves decision-making
(b) Planning is primary function of a manager
(c) Planning is mental exercise
(d) Planning focuses on achieving objectives
Answer: (a)

Question. This function of management fills the gap between where we are and where we want to be. Identify the function.
(a) Controlling
(b) Organising
(c) Planning
(d) Directing
Answer: (c)

Question. Employees become blind followers of plan as stated by superiors, so planning..........
(a) leads to improve decision-making
(b) leads to reduce creativity
(c) leads to rigidity
(d) leads to guarantee to success
Answer: (b)

Question. If an organisation sets the objective to increase the sales by 10%, then the sales can be increased by
a) Adding more lines of products
b) Offering products at discount
c) increasing the expenditure on advertising
Identify the step of planning process :
(a) Implementation of plan
(b) Identifying alternative courses of action
(c) Follow up of plan
(d) Evaluating alternative courses of action
Answer: (b)

Question. If the end result is clear it becomes easier to work towards the goal. Identify the step of planning process :
(a) Setting up of objectives
(b) Identifying alternative courses of action
(c) Follow up of plan
(d) Evaluating alternative courses of action
Answer: (a)

Question. Most plans may not always be subjected to a mathematical analysis. In such cases, subjectivity and the manager's experience and judgement are taken into consideration. Identify the step of planning process :
(a) Setting up of objectives
(b) Identifying alternative courses of action
(c) Selecting alternative courses of action
(d) Evaluating alternative courses of action
Answer: (d)

Question. Useless and redundant activities are minimised. It is easier to detect inefficiencies and take corrective measures to deal with them. Which importance of planning is highlighted in the paragraph?
(a) It reduces the risk of uncertainty
(b) It reduces overlapping and wasteful activities
(c) It establishes standard for controlling
(d) It facilitates decision making
Answer: (b)

Question. Which of the following statement about planning is true?
(a) Planning promotes innovative ideas in rigid environment
(b) Planning promotes innovative ideas as employees are not allowed to deviate from plans
(c) Planning promotes innovative ideas as it guides all future actions
(d) Planning promotes innovative ideas as changes cannot be eliminated
Answer: (c)

Question. “A plan is framed; it is implemented and is followed by another plan and so on." Identify the feature of planning highlighted above:
(a) Planning is continuous
(b) Planning is futuristic
(c) Planning is pervasive
(d) Planning involves decision making
Answer: (a)

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: (b)

Question. “It is not always true that just because a plan has worked before it will work again. Besides, there are so many other unknown factors to be considered. This kind of complacency and false sense of security may actually lead to failure of planning. Identify the limitation of planning being highlighted above:
(a) Planning leads to rigidity
(b) Planning may not work in dynamic environment
(c) Planning does not guarantee success
(d) Planning involves huge cost
Answer: (c)

Question. Formation of major plan and framing of overall policies is the task of top level managers whereas departmental managers form plan for their respective departments. And lower level managers make plans to support the overall objectives and to carry on day to day activities. Identify the feature of planning highlighted above:
(a) Planning is continuous
(b) Planning is futuristic
(c) Planning is pervasive
(d) Planning involves decision making
Answer: (c)