CBSE Class 12 Business Studies Planning MCQs Set H

ASSERTION AND REASON BASED QUESTIONS

Question. Assertion (A) Planning is closely connected with creativity and innovation.
Reason (R): Before doing something, the manager must formulate an idea of how to work on a particular
(a) Both Assertion (A) and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(c) Assertion (A) is true and Reason(R) is false.
(d) Assertion (A) is false and Reason(R) is true.
Answer: (a)

Question. Assertion (A) At the end of a certain period, there is need for a new plan to be drawn on the basis of requirements and future conditions
Reason (R) All the plans expire after a certain period.
(a) Both Assertion (A) and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(c) Assertion (A) is true and Reason(R) is false.
(d) Assertion (A) is false and Reason(R) is true.
Answer: (c)

Question. Assertion (A): Planning seeks to bridge the gap between where we are and where we want to go.
Reason (R): Planning involves setting objectives and developing appropriate courses of action to achieve these objectives. Planning provides a rational approach for achieving predetermined objectives.
(a) Both Assertion (A) and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(c) Assertion (A) is true and Reason(R) is false.
(d) Assertion (A) is false and Reason(R) is true.
Answer: (a)

Question. Assertion (A): Planning will be a futile exercise if it is not acted upon or implemented.
Reason (R): Planning is time consuming and sometimes not much time is left for its implementation.
(a) Both Assertion (A) and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(c) Assertion (A) is true and Reason(R) is false.
(d) Assertion (A) is false and Reason(R) is true.
Answer: (c)

Question. Assertion (A): Planning does not reduce overlapping and wasteful activities.
Reason (R): Planning ensures clarity in thought and action, work is carried on smoothly without interruptions.
(a) Both Assertion (A) and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(c) Assertion (A) is true and Reason(R) is false.
(d) Assertion (A) is false and Reason(R) is true.
Answer: (d)

Question. Assertion (A): Planning is the most challenging activity for the management.
Reason (R): It guides all future actions leading to growth and prosperity of the business
(a) Both Assertion (A) and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(c) Assertion (A) is true and Reason(R) is false.
(d) Assertion (A) is false and Reason(R) is true.
Answer: (a)

Question. Assertion (A) Planning is not an exclusive function of top management or of any specific department.
Reason (R) Planning is foremost function of management.
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
Answer: (b)

Question. Assertion (A) Through forecasting, future events and conditions are anticipated and plans are drawn accordingly.
Reason (R) Planning essentially involves looking ahead.
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True
Answer: (a)

Question. Assertion (A) Following a pre-decided plan, when circumstances have changed, may turn out to be in organisations interest.
Reason (R) The plans decide future course of action and managers may not be in a position to change it.
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
Answer: (d)

Question. Assertion (A) Sometimes plans to be drawn up take so much of time that there is not much time left for their implementation.
Reason (R) Planning involves huge costs.
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
Answer: (b)

Question. Assertion (A) Objectives should be stated clearly for all departments units and employees.
Reason (R) The end results do not have any significance in planning process.
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True
Answer: (c)

Question. Assertion (A) A manager is not required to make certain assumptions about future in planning process.
Reason (R) Planning is concerned with future which is uncertain.
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
Answer: (d)

Question. Assertion (A): Planning is basically an intellectual activity of thinking rather than doing.
Reason (R): Planning requires application of the mind involving foresight, intelligent imagination and sound judgement.
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
Answer: (a)

Question. Assertion (A) The more risky the investment, the higher the returns it is likely to give. To evaluate such proposals, detailed calculations of earnings, interest, taxes and dividends are made and decisions taken.
Reason (R) The positive and negative aspects of each proposal have least consideration in defining objectives of an organisation.
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
Answer: (c)

Question. To see whether plans are being implemented and activities are performed according to schedule is also a part of planning process.
Reason (R) Monitoring the plans is equally important to ensure that objectives are achieved.
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
Answer: (a)

Question. Assertion (A) Planning seeks to bridge the gap between where we are and where we want to go.
Reason (R) It provides some standards against which actual performance is measured.
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
Answer: (b)

Question. Assertion (A) Planning enables manager to look ahead and anticipate changes to deal with uncertain events.
Reason (R) Planning involves rational decisions.
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
Answer: (b)

CASE BASED QUESTIONS

Read the following case carefully and answer question number 35 to 38 on that basis:
Excel Business' is a balloon manufacturing firm. With the arrival of foreign firms it is feeling the pressure of improving its business strategy. Because of the firm's advance planning it could not suddenly bring changes in its plans as the whole organisation had started implementing the decided plan. But this year the organisation wants to ensure success. However, the firm knows that the external environment is changeable and continues to vary in a fast manner. The organisation wants to prepare in advance for a better future. It has decided to allocate a portion of its budget specifically for proper planning as it knows there are going to be expenses like Expert's fee, survey charges, etc.

Question. What does the acronym SMART stands for?
(a) Suitable, measurable, actionable, rewarded and timely
(b) Specific, measurable, actionable, resourced and timely
(c) Standardised, measurable, achievable, realistic, and timely
(d) Specific, measurable, achievable, realistic and timely
Answer: (d)

Question. Which limitations of planning have been identified in the above case?
(a) Planning Does Not Work in a Dynamic Environment
(b) Planning Reduces Creativity
(c) Planning Involves Huge Costs
(d) Both (a) and (c)
Answer: (d)

Question. "Planning leads to rigidity." In context to above paragraph, Is the statement?
(a) True
(b) False
Answer: (a)

Question. The organisation wants to prepare in advance, the line describes the feature of planning?
(a) Planning is continuous
(b) Planning is futuristic
(c) Planning is pervasive
(d) Planning involves decision making
Answer: (b)

Read the following case carefully and answer question number 39 to 43 on that basis:
It is deciding in advance what to do and how to do? It is one of the basic managerial functions. It requires thinking before doing something; the manager must formulate an idea of how to work on a particular task. This function is closely connected with creativity and innovation. It seeks to bridge the gap between where we are and where we want to go and is performed at all levels of management.

Question. What function of management is referred to here?
(a) Planning.
(b) Organizing
(c) Staffing.
(d) Controlling
Answer: (a)

Question. What are the two limitations of planning?
(a) Reduces creativity & Rigidity.
(b) Competitive edge & Co-ordination
(c) Both (a) and (b).
(d) Minimizes uncertainties
Answer: (a)

Question. Which of the following is a feature of planning?
(a) Focuses on achieving goals.
(b) Pervasive
(c) Mental exercise.
(d) All of Above
Answer: (d)

Question. By comparing...............with standards manager can know whether the goals are achieved or not.
(a) Ideas.
(b) Cost.
(c) Actual Performance.
(d) Risk
Answer: (c)

Read the following case carefully and answer question number 43 to 46 on that basis:
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 of 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 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. “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) Economic Environment
Answer: (a)

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.”
(a) True
(b) False
Answer: (a)

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 step of Planning Process mentioned here?
(a) Implementation of plan
(b) Timely execution of projects
(c) Follow up
(d) To prepare alternative course of action
Answer: (c)

Read the following text and answer question no. 47-50 on the basis of the same:
Flows Technology deals in bulb manufacturing business. It plans for a successful year of production and sale this year. It has in advance given targets to all its departments and employees. The departments and employees are happy about this. They know that now they won't have to do unconcerned activities thus leading to more focused approach resulting in saving of resources. The company is thinking of starting two new plants in the southern portion of India. For this some concrete plan has to be made. The main core team of the company has decided to weigh all the options and then choose the best one. The road might be long but the company is geared to face all the challenges.

Question. Highlight the importance of planning mentioned above:
(a) Planning provides directions.
(b) Planning reduces overlapping and wasteful activities
(c) Planning facilitates decision making
(d) All of Above
Answer: (d)

Question. Which of these do not define concrete plan?
(a) An abstract one
(b) A realistic one
(c) A specific one
(d) None of the above
Answer: (a)

Question. The company is thinking of starting two new plants in the southern portion of India This defines -
(a) Setting objectives
(b) Identify alternative courses of action
(c) Evaluating alternative courses of action
(d) None of the above
Answer: (a)

Question. What one of the following is not a key management skill in planning?
(a) Conceptual skills
(b) Technical expertise skills
(c) IT and computing skills
(d) Communication skills
Answer: (c)