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Multiple Choice Questions – Chapter Planning

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Business Studies 10+2 CBSE Students

Presenting the Business Studies Class 12 Objective type questions with answers for CBSE 10+2 students for gaining quick marks. These handpicked 25 questions are carefully chosen by our experienced team. Practice these questions here and test your concept learning here.

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Q1- What is the essence of planning?

Ans- Think in advance.

Q2- _____________ seeks to bridge the gap between where we are and where we want to reach?

(a) Organizing             (c) Planning

(b) Staffing                  (d) Directing

Ans. Planning

Q3- __________ function of management is concerned with both ends and means.

(a) Organizing             (c) Planning

(b) Staffing                  (d) Directing

Ans. Planning

Q4- If ______________ is not taken into consideration, conditions in the environment may change and all business plans may go waste.

(a) Objective               (c) Resources

(b) time frame            (d) Alternatives

Q5- Define Planning.

Answer:- Planning can be defined as setting objectives for a given time period. Formulating various courses of action to achieve them and then selecting the best possible alternative from among the various courses of action available

Q6- 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.

Ans - (a) Planning provides direction    

Q7- 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.

Ans- (b) Planning reduces the risk of uncertainty.

Q8- Planning ensures clarity in thought and action, work is carried out smoothly without interruptions. Which importance of planning is highlighted in the above statement?

a) Planning provides direction. 

b) Planning reduces overlapping and wasteful activities.

b) Planning reduces the risk of uncertainty. 

d) Planning facilitates decision making.

b) Planning reduces overlapping and wasteful activities.

Q9- Planning involves setting targets and predicting future conditions, thus helping in making a choice. Which importance of planning is highlighted in the above statement?

a) Planning provides direction.

b) Planning reduces overlapping and wasteful activities.

b) Planning reduces the risk of uncertainty. 

d) Planning facilitates decision making.

Ans- (d) Planning facilitates decision making.

Q10- With the help of planning managers can know whether they have actually been able to attain the goals. Which importance of planning is highlighted in the above statement?

a) Planning provides direction.

b) Planning establishes standards for controlling.

c) Planning reduces the risk of uncertainty. 

d) Planning facilitates decision making.

Q11-________ concept of Planning throws light on its nature and scope also.

(a) Importance                                    (c) Process

(b) limitations                                     (d) Features

Ans: (d) Features

Q12- All other managerial functions are performed within the framework of Planning.

Q13- 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 pervasive.

Ans- (b)   Planning is the primary function of management

Q14- A Plan is framed, it is implemented and is followed by another plan and so on.

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 pervasive.

Ans- b) Planning is continuous.

Q15- 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.

Ans- (d) Planning is futuristic.

Q16- Planning requires logical and systematic thinking rather than guesswork or wishful thinking.

Which feature of planning is highlighted in the above case?

a) Planning focuses on achieving objectives.

b) Planning is a mental exercise.

c) Planning is the primary function of management.

d) Planning is pervasive.

Ans- d) Planning is a mental exercise.

Q17- What do you mean by premises?

Ans- Assumptions about the future are called Premises.

Q18- While planning Forecasts regarding the demand for a particular good, policy changes, interest rates, prices of capital goods, tax rates are known as-

a) Objectives. c) Premises.

b) The course of action. d) alternatives.

Ans- (c) Premises.

Q19- What are the qualities of an ideal plan?

Ans- An ideal plan shuld be the most feasible, profitable and with least negative consequences.

Q20-  Identify the type of plan which provides broad contours of an organization’s business.

a) Objective    b) Policy c) Strategy                 d) Procedure

Ans- c) Strategy

Q21-  How many suppliers should a company make a purchase from? What are the criteria for choosing suppliers? All these questions can be answered by making one type of plan . Identify the type of plan?

(a) Objective               (c) Policy

(b) Strategy                 (d) Procedure

Ans- © Policy

Q22- ______________ and __________  type of plan are interlinked with each other.

(a) Policy and procedure.                    (c) Objective and policy.

(b) Policy and Rule.                              (d) Objective and Method.

Ans- (a) Policy and procedure.

Q23- Which type of plan includes the entire gamut of activities as well as the organization’s policy.

Ans- Programme

Q24- Identify the type of plan which quantifies future facts and figures?

Ans- Budget

Q25- Which of the following type of plan do not allow for any flexibility or discretion.

(a) Rule                       b) Policy c) Strategy                 (d) Procedure

Ans-  a) Rule