CUET Business Studies MCQs Unit IV Planning

Question: Which of the following is an assumption of rationality to rationale decision making?
a. Preferences are clear
b. Final choice will maximize pay off
c. The problem is clear and unambiguous
d. All of the above

Answer: D

Question:  First step in planning process is to
a. Setting an objectives
b. Evaluate alternative
c. Determine strength and weakness
d. None of the above.

Answer: A

Question. Identify the correct sequence of steps in the process of planning.
(i) Evaluating alternative courses of action
(ii) Implementing the plan
(iii) Developing premises
(iv) Follow up
a. (i), (ii), (iii), (iv)
b. (ii), (iii), (iv), (i)
c. (iii), (i), (ii), (iv)
d. (ii), (i), (iv), (iii)

Answer : C

Question. An ideal plan would be one which is most profitable, most feasible and has the least..........
a. positive consequences
b. negative consequences
c. alternatives
d. None of these

Answer: B

Question: Plan which is firstly discussed in business plan is mostly
a. Marketing plan
b. Financial planning
c. Personnel plan
d. Production plan

Answer: A

Question. Planning commission was established by Government of India in: 
a. March 1950
b. April 1951
c. May 1950
d. January 1950

Answer: A

Question: Rearrange the steps in the decision-making process logically.
A. Identification of a problem
B. Identification of decision criteria
C. Allocation of weights to criteria
D. Development of alternatives
E. Analysis of alternatives
F. Selection of an alternative
G. Implementation of the alternative
a. GFEDCBA
b. CDBAFEG
c. ABCDEFG
d. GCDABEF

Answer: C

Question. Economic planning refers to : 
a. The allocation of resources
b. The planning of man power
c. The mobilisation of taxes
d. The mobilisation of both taxes and man power

Answer: A

Question. Reliable communication limited scans the business environment and adapt itself to the changes in the environment, yet it becomes difficult to foresee the future trends. Which limitation of planning is related to the above statement?
a. Planning may not work in the dynamic environment
b. Planning reduces creativity
c. Planning is a time consuming process
d. Planning does not guarantee success

Answer: A

Question. From which country India adopted the Five year plans: 
a. USSR
b. USA
c. Australia
d. Germany

Answer: A

Question. The power and function of the Panchayats are enlisted in_ of the Constitution. 
a. Tenth schedule
b. Eleventh schedule
c. Twelfth schedule
d. Thirteenth schedule.

Answer: B

Question: Is accepting solutions that are "good enough".
a. Bounded rationality
b. Satisfying
c. Escalation of commitment
d. None of the above

Answer: B

Question. Panchayati Raj system was first adopted by the state 
a. Uttar Pradesh
b. Gujrat
c. Rajasthan
d. Goa.

Answer: C

Question. For the two statements given below, choose the correct option Statement I Planning seeks to bridge the gap between where we are and where we want to go.
Statement II Planning is basically an intellectual activity of thinking.
Alternatives
a. Statement I is correct and Statement II is incorrect.
b. Statement II is correct and Statement I is incorrect.
c. Both the statements are correct.
d. Both the statements are incorrect.

Answer : C

Question: Which of the following quality a manager must possess to succeed in planning?
a. Reflective Thinking
b. Imagination
c. Farsightedness
d. All of these

Answer: D

Question: Making decisions on the basis of experience, feelings and accumulated judgement is called as
a. Decision making
b. Structured problems
c. Intuitive decision making
d. None of the above

Answer: C

Question. Planning gives direction, reduces the impact of change, minimises waste and redundancy and
a. establishes chaos among departments
b. sets the basis used for promotion of individuals within the organisation
c. planning guarantees safeguard from external environment
d. sets the standards used in controlling

Answer : D

Question. In financial plans, the risk-return trade-off is very common. The more risky the investment, the higher the returns it is likely to give. To evaluate such proposals, detailed calculations of earnings, earnings per share, interest, taxes, dividends are made and decisions taken. Identify the step of planning function of management highlighted above.
a. Setting objectives
b. Developing premises
c. Identifying alternative courses of action
d. Evaluating alternative courses

Answer : D

Question. The very first Five year plan of India was based on the model of: 
a. Harrod - Domar model
b. Mahalanobis model
c. Bombay plan
d. All of the above

Answer: A

Question. What is the annual rate aimed at in the Eight Five year plan :
a. 5.6%
b. 6%
c. 7%( but achieve 6.7%)

Answer: A

Question. Plans are made for a specific time period. At the end of such time period, new plans have to be drawn. Identify the feature of planning.
a. Planning is pervasive
b. Planning is futuristic
c. Planning involves decision-making
d. Planning is continuous

Answer : D

Question. ‘All other managerial functions are performed within the framework of the plans drawn. Thus, it can be said that planning preceeds other functions.’’ This statement describes which function of planning?
a. Planning focuses on achieving objectives
b. Planning is pervasive
c. Primacy of planning
d. Planning is futuristic

Answer : C

Question: Which software provides key performance indicators to help managers monitor efficiency of projects and employees?
a. Management Information System
b. Business Performance Management
c. Enterprise Application Software
d. Online analytical Processing

Answer: B

Question. On the introduction of ‘Goods and Services Tax Act’, experts in the field of business started analysing and forecasting its impact on various sectors and industries. Rakesh, an established businessman, attended a few seminars and conferences organised by such experts to familiarise himself with this information. He wanted to use these forecast and conjectures to reduce the uncertainty in making decisions for the future in his business. Name the step in the planning process that is being discussed in the above paragraph.
a. Setting objectives
b. Developing premises
c. Evaluating alternatives
d. Implementing the plan

Answer: B

Question: Is a rule of thumb that managers use to simplify decision making.
a. Sunk costs
b. Framing
c. Heuristics
d. None of the above

Answer: C

Question. Which of the following is correct statement?
a. Planning requires systematic and logical thinking rather than guess work.
b. The scope for planning is same at all levels.
c. Planning is an exclusive function of top management.
d. Time factor should not be taken into consideration during planning.

Answer: A

Question. Which of the following is an activity, which requires a manager to look ahead and anticipate changes?
a. Organising
b. Staffing
c. Planning
d. Controlling

Answer : C

Question. Planning gives direction, reduces the impact of change, minimises waste and redundancy and
a. establishes chaos among departments
b. sets the basis used for promotion of individuals within the organisation
c. planning guarantees safeguard from external environment
d. sets the standards used in controlling

Answer : D

Question. ‘‘All other managerial functions are performed within the framework of the plans drawn. Thus, it can be said that planning preceeds other functions.’’
This statement describes which function of planning?
a. Planning focuses on achieving objectives
b. Planning is pervasive
c. Primacy of planning
d. Planning is futuristic

Answer : C

Question. ‘‘Planning is a thinking process, the organised foresight, the vision based on facts and experience, i.e. required for intelligent action.’’ This definition of planning is given by
a. Henri Fayol
b. Alfred and Beatty
c. Hurley
d. FW Taylor

Answer : B

Question. Planning involves ............... . It is essentially the process of choosing among various alternatives.
a.mental exercise
b. decision-making
c. wasteful activities
d. Both (a. and (c)

Answer : B

Question. ‘‘Planning provides the standards against which actual performance is measured.’’ In the light of this statement, identify the benefit of planning from the following.
a. Planning establishes standard for controlling
b. Planning provides direction
c. Planning is a mental exercise
d. Planning involves decision-making

Answer : A

Question. What is meant by ‘follow-up action’ as the step involved in the process of planning?
a.Managing the plan
b. Checking the plan
c. Selecting the plan
d. None of the above

Answer : B

Question. Some plans are used repeatedly in similar situations. Identify the type of plan.
a. Standing plan
b. Single use plan
c. Policy plan
d. None of these

Answer : A

Question. Name the most critical step in the process of planning.
a. Implementing the plan
b. Developing the plan
c. Selecting the best possible course of action
d. None of the above

Answer : C

Question. Name the type of plan, which is in the form of general statements and channelises energies towards a particular direction.
a. Budget
b. Rule
c. Policy
d. Method

Answer : C

Question. “Planning is deciding in advance what is to be done. It involves the selection of objectives, policies, procedures and programmes among alternatives.” This definition has been given by
a.ME Hurley
b. Peter Drucker
c. Henri Fayol
d. Chester Barnard

Answer : A

Question. A company wants to introduce a new product.
What type of plan should it prepare?
a. Objective
b. Strategy
c. Policy
d. None of these

Answer : B

Question. Plans are made for a specific time period. At the end of such time period, new plans have to be drawn. Identify the feature of planning.
a. Planning is pervasive
b. Planning is futuristic
c. Planning involves decision-making
d. Planning is continuous

Answer : D

Question. Which plan is defined as the formalised or systematic way of doing routine and repetitive jobs?
a. Objective
b. Strategy
c. Method
d. None of these

Answer : C

Question. Identify the key elements of planning from the following.
a. Determining the objectives
b. Identifying alternative courses of action
c. Selecting the best course of action
d. All of the above

Answer : D

Question. Single use plans are
a. formulated to achieve a specific target
b. responsible and can be easily fixed
c. comes under the standing plan
d.None of the above

Answer : A

Question. Name the type of plan in which the move of competitors is considered.
a. Budget
b. Rule
c. Strategy
d. Method

Answer : C

Question.Natural disaster like f lood in Kerala lead to failure of production sales strategies of many companies. Which limitation of planning is highlighted?
a. Planning leads to rigidity
b. Planning may not work in dynamic environment
c. Planning reduces creativity
d. Planning does not guarantee success

Answer : D

Question. Manav Ltd. prepares budget in its Annual General Meeting for the year 2021-2022. What kind of plan is it?
a. Single use plan
b. Standing plan
c. Objective plan
d. None of these

Answer : A

Question. Managers at the operational or supervisory level make plans for
a. strategic direction of organisation
b. departmental working
c. day-to-day working
d.None of the above

Answer : C

Question. What is meant by ‘selecting an alternative’ as a step in the planning process?
a. Choosing the best course of action
b. Implementing the best course of action
c. Planning the best course of action
d. Managing the best course of action

Answer : A

Question. Which of these leads to failure of planning?
a. Change in government policy
b. Pandemic
c. Change in technology
d. All of the above

Answer : A

Question. Which is the fourth step in planning?
a. Identifying alternative courses of action
b. Evaluating alternative courses
c. Selecting an alternative
d. Implementing the plan

Answer : B

Question. How planning reduces overlapping and wasteful activities?
a. It helps the manager to look into the future and choose amongst the various alternatives.
b. It serves as the base for coordination by avoiding confusion and misunderstanding.
c. It enables a manager to look ahead and anticipate changes.
d. None of the above

Answer : B

Question. ‘Developing premises’ is a step in which function of management?
a. Planning
b. Organising
c. Staffing
d. Controlling

Answer : A

Question. “Planning involves application of mind and foresight”. What importance of planning is highlighted here?
a. Promotes innovative ideas
b. Facilitates decision-making
c. Establishes standard
d. Provides direction

Answer : A

Question. If there is no planning, employees would work in different directions and would not be able to achieve its goals. In the light of this statement, identify the importance of planning.
a. Planning reduces the risk of uncertainties
b. Planning facilitates decision-making
c. Planning provides direction
d.None of the above

Answer : C

Question. Having transformed 3,000 Kirana stores across eight cities into virtual super markets, the start-up quick f lee further decided in advance, to collaborate with 18,000-22,000 store owners in top 40 cities of the country by the end of this year. The company has set its eye on digitising over 2,00,000 Kirana stores over next 24-30 months. Identify the step in the process of planning discussed above.
a. Setting objectives
b. Developing premises
c. Evaluating alternative courses
d. Selecting an alternative

Answer : A

Question. Which of these is not a feature of planning?
a. Futuristic
b. Mental exercise
c. Reduces overlapping
d. Continuous process

Answer : C

Question.Madhuban Oils Ltd. policy is to sell only for cash. In 2021, for the first time company’s number one position in the industry has been threatened because other companies started selling oil on credit also. But, the manager of Madhuban Oils 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 Madhuban Oils Ltd. The above said case highlights the limitation(s) of planning which led to decline in its sales. Identify such limitation(s).
a. Planning does not guarantee success
b. Planning may not work in dynamic environment
c. Planning leads to rigidity
d. Both (a. and (b)

Answer : D