CBSE Class 12 Business Studies Planning VBQs

Question. planning establish base or standard for
A. organising
B. staffing
C. directing
D. controlling 

Answer : D

Question. the sequence of steps or actions to be taken to enforce a policy and attain predetermined objectives is called
A. objective
B. policy
C. procedure
D. strategy 

Answer : C

Question. what are certain assumptions about the future on the basis of which the plan will be ultimately formulated ? 
A. method of premises
B. planning premises
C. esteem needs
D. management premises 

Answer : B

Question. the plant which includes objective, policy, procedure and rules is called
A. strategy
B. budget
C. programme
D. all of the above 

Answer : C

Question. planning is performed at
A. top level
B. middle level
C. supervising level
D. all level 

Answer : D

Question. The composite plan which involves setting up of long term objective finding course of action and allocation of resources is called
A. policy
B. strategy
C. programme
D. procedure 

Answer : B

Question. standing plan
A. stands as an example for other planner
B. recurring plans
C. discarded after use
D. all of the above 

Answer : B

Question. Rahim wanted to start with stationary app to help student of schools and college to provide stationary to them. He felt that students were not able to get the needed stationery easily and hence wanted to provide the stationary directly to the students in the school. he list out the various ways of setting up this business and finally selected the best way to set up this business is by developing an app. suggest what should be the next step of him: 
A. developing premises
B. identifying the alternative course of action
C. implementation of plan
D. follow up action 

Answer : C

Question. standardised way in which a task has to be performed is called
A. policy
B. procedure
C. strategy
D. method 

Answer : D

Question. organisations own customised way of handling problems or taking decisions is called 
A. strategy
B. policy
C. budget
D. rule 

Answer : B

Question. single use plan 
A. used only once
B. used for one single department
C. use by single individual
D. all of the above 

Answer : A

Question. End results towords which all the activities are directed is called
A. policy
B. strategy
C. objective
D. programme 

Answer : C

Question. after implementation of plan
A. planning ends
B. new plan is made
C. follow up is done
D. none of the above 

Answer : C

Question. A company is manufacturing garments. The manager wants to increase profits by purchasing new high speed machines or increasing the saleprice 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. directing
B. co-ordination
C. planning
D. organising 

Answer : C

Question. planning is the
A. primary /first function of manager
B. last function of manager
C. Bboth a and b
D. none of the above 

Answer : A

Question. planning is
A. routine activity
B. mental exercise
C. none of the above
D. all of the above 

Answer : B

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. controlling device from which deviations can be taken care of is
A. procedure
B. strategy
C. policy
D. budget 

Answer : D

Question. Which of the following quality a manager must possess to succeed inplanning?
A. Reflective Thinking
B. Imagination
C. Farsightedness
D. All of these

Answer : D

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. 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. 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. 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. State true or false 
i. Managers when plan,
organise, lead and control
are called decision makers.
A. True
B. False

Answer : A

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. Is accepting solutions that are "good enough".
A. Bounded rationality
B. Satisfying
C. Escalation of commitment
D. None of the above

Answer : B

Question. State true or false.
Availability bias is when decisions makers tend to remember events that are most recent.
A. True
B. False

Answer : A

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. 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. Assertion (A) Managers need to be given some flexibility to be able to cope with the changed circumstances.
Reason (R) Planning reduces creativity.
Alternatives
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, but 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. Shyam Clothing Co. manufactures readymade garments. The CEO 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. Directing
B. Coordinating
C. Planning
D. Organising

Answer : C

Question. “Planning is required at all levels of management as well as in all departments of the organisation. It is neither an exclusive function of top management nor of any particular department. But the scope of planning differs at different levels and among different department.” Identify the feature/characteristic of planning highlighted above.
A. Planning is continuous
B. Planning is futuristic
C. Planning is pervasive
D. Planning involves decision-making

Answer : C

Question. Assertion (A) Through planning, the uncertain events or changes can be anticipated and eliminated.
Reason (R) Planning reduces the risk of uncertainty.
Alternatives
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, but 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. 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

Very Short Answer Questions :

Question. Which limitation of planning suggest that the employees stop thinking and become the blind followers of Plan?
Answer : Planning reduce creativity.

Question. Planning lays down the base for other functions of management which feature of planning is Highlighted here?
Answer : Planning is a primary function of management.

Question. Without one function of management the controlling function is not possible. Name the concerned function.
Answer : Planning.

Question. Planning strangulates the initiative of the employees and compels them to work in an inflexible manner” Discuss.
Answer : Planning reduces creativity.

Question. Which plans suggest action and non action of employees?
Answer : Rules

Question. A plan is framed it is implemented and is followed by another plan and so on. Mention the feature of Planning indicate here?
Answer : Planning is continuous process.

Question. In which step of planning process the planners make prediction and assumptions regarding future?
Answer : Setting up of planning premises for all the alternatives. 

Question. “No Smoking : the statement is related to which type of plan?
Answer : Rule.

Question. Planning is an activity which enables a manager to look ahead and anticipate changes. Mention the Benefit of planning highlighted here.
Answer : Planning reduces the risks of uncertainty.

Question. Which features of Planning is stressed by saying that planning is an intellectual activity of thinking Rather than doing?
Answer : Planning is a mental exercise. 

Question. The planning function of management is conducted at which level of management ?
Answer : At all Three Levels.

Question. Planning ensures clarity in thoughts and actions, works is carried on smoothly without interruptions. Which importance of planning is mentioned here?
Answer : Planning reduces overlapping and wasteful activities.

Question. Name the type of plan which serve as a guide for overall business planning and define the future state of Affair which the organization strive to realize?
Answer : Objectives.

Question. A company needs a detailed plan for its new project- construction of shopping mall. What type of plan Is it ?
Answer : Programme.

Question. One of the functions of management is considered as a base for all other functions. Name that Function.
Answer : Planning.

Question. Mc Donald does not give its franchise to any other company which is running food business. This is Related to which type of plan
Answer : Policy.

Question. How does planning provide direction?(Any Three)
Answer : (a) Planning is goal oriented.
(b) Continuous process.
(c) Pervasive function.

Question. It helps the manager to look into future and make a choice amount various alternative courses of Action enumerate the importance of planning indicate here.
Answer : Planning facilitates decision –making.

Question. In which type of plan the sequence to perform a job is determined?
Answer : Procedure.

Question. How should a manager select the best possible course of action?
Answer : Manager should apply permutation and combination.

Question. Mc Donald does not give its franchise to any other company which is running food business. This is related to which type of plan?
Answer : Policy

Question. In which type of plan the sequence to perform a job is determined?
Answer : Procedure.

Question. The planning function of management is conducted at which level of management?
Answer : At all Three Levels.

Question. What is meant by single use plan?
Answer : It is a plan developed for a one-time event or project.

Question. How does planning provide direction?
Answer : Planning provide directions by stating in advance what to do, how to do, when to do, and who is to do it.

Question. A company needs a detailed plan for its new project- construction of shopping mall. What type of plan is it?
Answer : Programme.

Question. “No Smoking “: the statement is related to which type of plan?
Answer : Rule.

Question. What is meant by standing plan?
Answer : It is used for activities that occur regularly over a period of time.

Question. One of the functions of management is considered as a base for all other functions. Name that Function.
Answer : Planning.

Question. Which plans suggest action and non-action of employees?
Answer : Rules

Short Answer Questions :

Question. Planning provide directions and reduces the risk for uncertainty. Explain?
Answer : The planning process clearly defines and maps out the guidelines for smooth operations of a business in order to achieve their main goals / objective. By stating in advance how work is to be done, planning provides direction to action. It ensures that objectives /goals are clearly stated so that they act as a guide for deciding what action should be taken and in which direction.
Planning enables a manager to look ahead and anticipate changes. By deciding in advance the task to be performed, planning shows the way to deal with changes and uncertain events. Thus, planning helps to reduce the risks of uncertainty by preparing forecasts.

Question. In ‘Chak de India’ movie, Shahrukh Khan becomes the coach of the girls’ hockey team. He knows that he has to prepare the girls for the international hockey matches and bring the world cup after the winning. For this he prepares a long- team plan and thinks the ways how to beat the competitors. He coaches the girls to play in different ways like defensive, offensive, etc. At the outsets of a match he explains who will open the match, and how the ball will be passed by one player to another step by step.
Identify four types of plans that are highlight in the above case, quoting the lines from it.
Answer : 1. Objective -‘….bring the world cup after winning.’
2. Strategy-‘For this he prepares a long-term plan and thinks the ways how to beat the competitors.’
3. Method -‘He coaches the girls to play in different ways like defensive, offensive, etc.’
4. Procedure-‘At the outset of a match he explains who will open the match, and how the ball will be passed by one player to another step by step.’

Question. How does planning restrict creativity?
Answer : Planning in an activity which is done by top management usually the rest of the organisation just implements these plans. The result is that middle management and other decision makers are neither allowed to deviate from plans nor are they permitted to act on their own. Thus planning restricts creativity.

Question. Zyesha Ltd. is a company which manufactures leather bags. The CEO of the company wants to increase their sales and earn more profits. They consulted with a management consultant who suggested the top management of the company to work hard in thinking about the future in making business predictions and achieve the targets since the business
environment keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competitors in the market.
(a) Identify and state the concept of management discussed in the above para.
(b) State the characteristics /feature of business environment highlighted in the above para.
Answer : (a) Planning -It involves setting objective and developing appropriate courses of action to achieve these objectives. Dreams (e.g. increase sales, earn more profits, etc.) can be turned into reality only if business managers think in advance on what to do and how to do it.
(b) Business environment is dynamic as it keeps on changing.

Question. Planning facilitates decision-making and establishes standards for controlling. Explain how?
Answer : Planning means deciding the most feasible course of action and resources (Human and physical) required to reach a goal, in advance. Planning is a pre requisite for controlling because planning suggests ways or a controlled design for attaining future goals through controlling. For example, car manufacturers decide to control the production of cars for consumers depending upon the calendar dates of festivals and accordingly control the purchasing coasts of auto-components and raw materials, human resources, etc., by planning ahead.

Question. Differentiate between Objective and strategy as types of plan?
Answer : 

Question. State how planning leads to rigidity?
Answer : Planning can become limiting or restriction for the business during some changes in circumstances, which require quick decision that may go against the set rules and procedure of a business. It can restrict an individual’s freedom, initiative and desire to be creative.

Question. XYZ ltd. has a plan of increasing profits by 20%. It has devoted a lot of time and money to this plan. But the competition starts increasing, so it could not change its plan to beat its competitors because huge amount of money had already been devoted to the predecided plan. It caused losses to the company.
Explain any two limitations of planning highlighted in the above case. Also, quote the lines from it.
Answer : (i) ‘XYZ ltd. has devoted a lot of time and money to its plan.’ Planning is a time consuming process. It also involves huge costs.
(ii) ‘The competition starts increasing, so it could not change its plan to beat its competitors because huge amount of money had already been devoted to the predecided plan.’
Planning leads to rigidity. Following a pre-decided plan, when circumstance change, may not turn out to be in the organisation’s interest.

Long Answer Questions :

Question. Pan Parag and sons is a manufacturer of tobacco products. It decided to increase profits by atleast 25% in the next quarter. It has many options:
(i) To increase the working hours of laboures without additional payment.
(ii) To employ children from the local community.
(iii) To sell its product outside the school and colleges.
(i) It opted the (ii) and (iii) options to achieve the target.
(a) Identify the function of management described in the above para.
(b) State the steps of the process involved in the function of management identified in
(a) quoting the lines from the above para.
(c) State any two values neglected by the organization.
Answer : (a) Planning.
(b) Steps involved in planning process:
(i) Setting organisational objectives: ‘…increase profits by at least 25% in the next quarter.’
(ii) Identifying and evaluating alternatives courses of action: ‘It has many options: to increase the working hours of labourers without additional payment, or to employ from the local community, or to sell its products sell outside the schools and colleges.’
(iii) Selecting the best possible alternatives: ‘It opted to employ children from the local community, and to sell products outside the schools and colleges.’
(c) Values neglected:
♦ Child labour is banned.
♦ Bad effect on student’s health.
♦ M oral values.

Question. Lira Ltd. Is a company manufacturing designer sock. While making its plan, the company takes into consideration the business environment. It constantly adapts itself to changing environment by making changes in its plan, however it become difficult for the managers of the company to accurately foresee future trends in the changing environment. Competition in the market upsets its financial plans; then sales targets have to be revised and, accordingly cash budgets also need to be modified since they are based on sales figure.
(a) What characteristic features of business environment are highlighted in the above lines? State any two.
(b) State and explain the limitation of planning highlighted in the above lines.
(c) Identify any two types of plans mentioned in the above para by quoting the lines from it.
Answer : (a) (i) Business environment is dynamic as It keeps on changing.
(ii) Business environment is uncertain as it is difficult for the managers to accurately foresee future trends in the environment.
(b) Planning may not work in a dynamic environment.
The organization has to constantly adapt itself to change in environment by making changes in its plans. However, since planning cannot foresee everything, there may be obstacles to effective planning.
(c) (i) Strategy – ‘While making its plan, the company takes into consideration the business environment.’
(ii) Budget – ‘Competition in the market upsets its financial plans; then sales targets have to be revised … accordingly cash budgets also need to be modified since they are based on sales figures.’

Question. Suhani a home science graduate from a reputed college has recently done a cookery course. She wished to start her own venture with a goal to provide ‘healthy food’ responsible price. She discusses her idea with her teacher (mentor) who encouraged her. After analyzing various options for starting her venture, they shortlisted the option to sell readymade and ‘ready to make’ vegetable shakes and sattu milkshakes. Then, they both weighed the pros and cons of both the shortlisted option.
(a) Name the function of management being discussed above and give any of its characteristic.
(b) Discuss any three limitations of the function discussed in the case.
Answer : (a) Planning
Characteristic of planning
Planning focuses on achieving objective as specific goals are set out in the plans along with activities under taken to achieve them. Planning has no meaning unless it contributes to the achievement of pre –determined organizational goals /objectives.
(b) Limitations of planning
(i) Planning leads to rigidity-once a well-defined plan is drawn, managers may not be able to change it. They do not have flexibility to be able to cope with the changed circumstances.
(ii) Planning reduces creativity – planning is done by top management. Middle and lower management neither allowed to deviate from plans not are they permitted to act on their own. They only carry out orders. Thus, much of the initiative or creativity inherent in them gets lost or reduced.
(iii) Planning is a time-consuming process-sometimes plans to be drawn up takes so much of time that there is not much time left for their implementation.

Question. Two years ago Mohit obtained degree in food technology. For some time he worked in a company manufacturing Bread and Biscuits. He was not happy in the company and decided to have his own bread and biscuits manufacturing unit. For this he decided the objectives and targets and formulated action plan to achieve the same. One of his objectives was to earn 50% profits on the amount invested in the first year. It was decided that raw materials like flour, sugar, salt etc. will be purchased on two months credit. He also decided to follow the steps required for marketing the products through his own outlets. He appointed Harsh as a production manager who decided the exact manner in which the production activities are to be carried out. Harsh also prepared a statement showing the requirements of workers in the factory throughout the year. Mohit informed Harsh about his sales target for different products, area wise for the fourth coming quarter. While working on the production table a penalty of Rs.150 per day was announced for not wearing the helmet, gloves and a pron by the workers.
Quoting lines from the above para identify and explain the different types of plans discussed.
Answer : The different types of plans are:
(i) Objective ‘One of his objectives was to earn 50% profit on the amount invested in the first year.’
An objective is the end which the management seeks to achieve within a given time period.
(ii) Policy-‘It was decided that raw material like flour, sugar, salt etc. will be purchased on two month credit’.
Policy is a general guideline which brings uniformity in decision making for achievement of pre determined objectives.
(iii) Procedure ‘He also decided follow the steps required for marketing the products through his own outlets’.
                                                                                              OR
‘He appointed Harsh as a Production who decided the exact manner in which the production activities are to be carried out’.
It consists of sequence of routines steps on how carry out activities. It details the exact manner in which any work is to be performed.
(iv) Budget -‘Harsh also prepared a statement showing the requirement of workers in the factory throughout the year.
                                                                                             OR
‘Mohit inform Harsh about his sales target for different products, area wise for the forth coming quarter’.
A budget is a plan which state expected results of a given future period in numerical terms. It may be expressed in time, money or physical units.
(iv) Rule:-‘ while working on the production table a penalty of Rs. 150 per day was announced for not wearing the helmet, gloves and apron by the worker.’
A rule is a statement that specifies what is to be done or not to be done.