Planning MCQ | Class 12 | Business Studies | Chapter-4 | 2024

Last updated on July 14th, 2024 at 05:23 pm

Planning MCQ Chapter 4

Below are some of the very important NCERT Planning MCQ Class 12 Business Studies Chapter 4 with Answers. These Planning MCQ have been prepared by expert teachers and subject experts based on the latest syllabus and pattern of term 1 and term 2. We have given these Planning MCQ Class 12 Business Studies Questions with Answers to help students understand the concept.

MCQ Questions for Class 12 Business Studies Chapter 4 are very important for the latest CBSE term 1 and term 2 pattern. These MCQs are very important for students who want to score high in CBSE Board.

We have put together these NCERT Questions Planning MCQ for Class 12 Business Studies Chapter 4 with Answers for the practice on a regular basis to score high in exams. Refer to these MCQs Questions with Answers here along with a detailed explanation.

MCQ 1-17

1. Which of the following statements is false with respect to planning?

(a) it is one of the basic managerial functions
(b) planning is closely connected with creativity and innovation
(c) it requires taking decision
(d) none of the above

2. Which of the following is a feature of planning?

(a) provide direction
(b) reduces the risk of uncertainty
(c) focuses on achieving objectives
(d) all of the above

3. “It is that function of management which is considered as the base of all other functions.” Identify the function of management stated in the above lines.

(a) planning
(b) controlling
(c) organising
(d) staffing

4. “It involves application of higher order thinking skills and intellectual faculties, involving fission and foresightedness to decide the things to be done in the future.”

Which feature of planning is stated in the above line?

(a) planning is futuristic
(b) planning is pervasive
(c) planning is a mental exercise
(d) none of the above

5. “Planning is required in all organisations at all level and all departments.”

___________ feature of planning is stated in the above statement.

(a) planning is futuristic
(b) planning is pervasive
(c) planning is mental exercise
(d) none of the above

6. Nikita, a proofreader in Jai Publications, has been given a target of reading at least 50 pages per day. She has a habit of doing things differently. While doing her work and idea struck her that a summary of a chapter in the form of a map where all the concepts related to the chapter would be interlinked, should be given in starting of each chapter. It will give students just of the chapter as well as provide a competitive edge over the other publishers.

But instead of appreciating her idea, her boss scolded her and asked to complete the work as per prescribed format. Out of the following, identify the limitation of planning stated in the above paragraph.

(a) planning reduces creativity
(b) planning involves huge cost
(c) planning is a time-consuming process
(d) planning does not work in dynamic environment

7. Relo Ltd. wants to increase their market share by 4.5 % in next 2 years. It spent a lot of money to hire specialised people for framing their plans like collecting important facts about environment, who took lot of time to frame plans for the company. The competition has started increasing and it is not able to beat its competitors. It is because it has already spent a huge amount the plan field and companies offer the huge loss.

Identify the limitation of planning stated in the given case.

(a) planning involves huge cost
(b) planning may not work in the dynamic environment
(c) planning is a time-consuming process
(d) all of the above

8. Which of the following statements is true regarding planning?

(a) once plans are made to decide the future in course of action, the management may not be in a position to change them.
(b) planning is a one-time process
(c) planning is required only at top level of management as plans are made by top level of management
(d) planning always leads to success 

9. Match the following.

(a) (ii), (iii), (i)
(b) (iii), (ii), (i)
(c) (ii), (i), (iii)
(d) (iii), (i), (ii)

10. Planning is decided in advance, what to do and how to do it. The first step of planning process is

(a) setting objectives
(b) follow-up
(c) implementation of plan
(d) developing premises

11. Which of the following steps in the process of planning stage that the manager is required to make certain assumptions about the future?

(a) setting objectives
(b) developing premises
(c) evaluating alternative course of action
(d) implementation of plan

12. __________ are the anticipated in parliament in which plants are expected to operate.

(a) planning
(b) premises
(c) forecasting objective
(d) none of the above

13. To see whether plans are being implemented and activities are being performed according to the schedule, is a step of planning process. Identify the step.

(a) Selecting the best alternative
(b) Implementing the plan
(c) Follow up action
(d) Evaluating alternative courses of action

14. _________ step is a process of planning is considered as the ‘real point of decision making’.

(a) setting objectives
(b) selecting an alternative
(c) implementation of plan
(d) developing premises

15. While ‘selecting an alternative’ under the planning process, which of the following are considered?

(a) combination of plants may be selected instead of one best course
(b) subjectivity and managers experience or judgement plays a role
(c) the most feasible profitable plan with least negative consequences is chosen
(d) all of the above

16. Which of the following is true with respect to the step ‘developing premises’ under the planning process?

(a) base material for assumption can be put in the form of forecasts, existing plans or any past information about policies
(b) only a few managers are required to be familiar with and use the same assumptions
(c) as a need not necessarily be same for all
(d) all of the above 

17. Match the following.

(a) (iii), (ii), (i)
(b) (ii), (i), (iii)
(c) (ii), (iii), (i)
(d) (iii), (i), (ii)

MCQ Answers

1. (d)

Planning lays down the base for other functions of management. Planning involves setting targets and predicting future conditions, thus helping in taking rational decisions.

2. (d)

Planning reduces uncertainty, risk and confusion in operation. Planning begins with the determination of objectives and is directed towards their achievement.

3. (a)

Planning precedes all other managerial functions and provides the very basis for organising, staffing, directing and controlling. Planning is deciding in advance what to do and how to do. It is one of the basic managerial function. Before doing something the manager must formulate an idea of how to work on a particular task. Thus, planning is closely connected with creativity and innovation.

4. (c)

Planning requires application of the mind involving foresight, intelligent imagination and sound judgement. It is basically an intellectual activity of thinking rather than doing, because planning determines the action to be taken.

5. (b)

Planning is required at all levels of management as well as in all department of organisation. It is not an exclusive function of top management 9 of any particular department.

6. (a)

Planning reduces creativity. It is an activity which is done by the top management. Usually the rest of the members must implement these plans. As a consequence, middle management and other decision makers and neither allowed to deviate from plan nor are the permitted to act on their own. Thus, much of the initiative and creativity in her in them also gets lost or reduced.

7. (d)

Planning requires a lot of time to collect information, if analysis and interpretation. So it is a time consuming process. When plans are drawn up huge cost are involved in the formulation. The environment in which business services is dynamic as it keeps on changing. The dynamic environment may sometimes lead to failure of plans.

8. (a)

In an organisation, a well-defined plan is drawn with specific goals to be achieved within a specific time frame. These plans then decide the future course of the action and managers may not be in a position to change it. This kind of rigidity and plans may create difficulty.

9. (c)

(ii), (i), (iii)

10. (a)

The first and foremost step is setting objectives. Every organisation must have certain objectives. Objectives may be set for the entire organisation and each department or unit within the organisation.

11. (b)

Planning is concerned with future which is uncertain and every planner is using picture about what might happen in future. Therefore, the manager is required to make certain assumptions about the future. These assumptions are called premises.

12. (a)

Premises include actual forecast data policies and plans of the enterprise. Planning involves looking into the future which necessary necessitates the Enterprise to know how future conditions will affect its activities.

13. (c)

To see whether the plans are being implemented and activities are performed according to schedule is also part of the planning process. Monitoring the plants is equally important to ensure that object is achieved.

14. (b)

Best plan to be adopted and implemented. The ideal plan, of course, would be the most feasible, profitable and with at least negative consequences. Most plants may not always be subjected to a mathematical analysis.

15. (d)

The best plan, which is the most profitable planet with minimum negative effect, is adopted and implemented.

In such case, managers experience and judgement plays an important role in selecting the best alternative.

16. (a)

Assumptions are the base material upon which plants are to be drawn. The base material may be in the form of forecast, existing plans or any past information about policies. The premises or assumptions must be same for all and there should be total agreement on them. All managers involved in Planning should be familiar with the use the same assumption.

17. (c)

(ii), (iii), (i)

Assertion-Reasoning Based MCQ

Code

1. Both assertion and reason are true and reason is the correct explanation of assertion.
2. Both assertion and reason are true but reason is not the correct explanation of assertion.  
3. Assertion is true but reason is false.
4. Assertion is false but reason is true. 

1. Assertion Planning is a primary function of management.

Reason Planning is required at all levels of management as well as in all departments of organisation.

2. Assertion Planning is a time saving process.

Reason The success of an enterprise is possible only when plans are properly drawn up and implemented.

3. Assertion Planning is futuristic.

Reason Planning is regarded as a forward-looking function based on forecasting.

4. Assertion Planning is pervasive at all levels of management.

Reason Planning is required in all types of organisation and at all levels of management.

5. Assertion Developing planning premises is the primary step.

Reason Objective are in results with the management wants to achieve by its operations.

6. Assertion Monitoring of plants is very important to ensure that the plans are being implemented according to the schedule.

Reason Regular check and comparison of the results with set standards are done to ensure that objectives are achieved.

7. Assertion Planning is concerned with the future which is uncertain.

Reason The manager is required to make certain assumptions about the future.

Assertion-Reasoning Based MCQ Answers

1. (2)

Planning lays down the base for other function of management. All of the managerial functions are performed within the framework of the plans drawn. Thus, planning proceed other functions.

2. (4)

Planning is a time consuming process. Sometimes plans to be drawn up take so much time, there is not much time left for the implementation.

3. (a)

Planning essentially involves looking ahead and preparing for the future. The purpose of planning is to meet future events effectively to the best advantage of an organisation. It implies peeping into the future analysing and predicting it.

4. (a)

Planning is required at all levels of the management. It is not a function restricted to top level managers only but planning is done by managers at every level. Formation of major plan and framing of overall all policies is the task of top level managers where as departmental managers form plan for their respective departments. And lower level managers make plans to support the overall objective and to carry on day to day activities.

5. (d)

Setting objectives is the primary step in the process of planning which specifies the objective of an organisation, therefore what an organisation wants to achieve.

6. (b)

To see whether plans are being implemented and activities are performed according to schedule is also part of the planning process. Monitoring the plants is equally important to ensure that objectives are achieved.

7. (a)

Planning is concerned with future which is uncertain and every planner is using conjecture about what might happen in future. Therefore, the manager is required to make certain assumptions about the future. These assumptions are called premises. 

Case-Study Based MCQ

1. Read the following passage and answer accordingly.

Mundhra Group Ltd. had taken over Simplex Limited immediately after India’s Independence. Since then it enjoys a rich record of industry presence and experience. In 2005, with 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 an 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 situation. In 2008, the company suffered loss in many projects due to the great recession despite taking many cost-cutting measures.

The management had taken atmosphere 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 with subsequently help the company to execute numerous projects with precision and timeliness.

(i) “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 and development
(c) launching IT enabled system
(d) cost cutting

(ii) “The management had an effective forecast and critical thinking regarding allocation of resources to reduce wastage.” Identify the function of management mentioned here.

(a) planning
(b) organising
(c) controlling
(d) directing

(iii) “In 2008, the company suffered loss in many project due to the great recession despite taking many cost-cutting measures.” Which limitation of the management process is indicated here?

(a) it feels to cope with sudden changes
(b) it involves use cost
(c) it requires critical thinking
(d) need to construct multiple action plans

(iv) “The management had taken utmost care regarding the possible outcome and timely review of the plans to achieve desired target during that hard time.” Which is the last step of the process mentioned here?

(a) implementation of plan
(b) timely execution of projects
(c) follow up
(d) to prepare alternative course of action

2. Read the following passage and answer the following accordingly.

Rohit inherited a 25 acre ancestral land from his grandparents. He decided to venture into agriculture. For this purpose we set out specific goals, objectives and activities. Everything was a challenge because he was not aware about farming. He learnt every activity in the process thought of assisting other farmers as well.

He eventually launched his own company Agriculture Solution Ltd. He wanted to be sure that the activities effectively made the best interest of the company and the farmers. Hence, the prepared annual plan for production, sales and marketing through sales forecasting.

He also realised that farmers by growing only one or two crops. On account of this deal and remained idle for the rest of the year. Thus, he identified and evaluated different alternative through which the farms could be utilised throughout the year.

He used his foresight and logical and systematic thinking based on analysis of all taxes and examined and evaluated all the alternative. He presented a plant to the farmers union, where after harvesting the primary crop seasonal vegetables and fruit could be grown.

(i) “For this purpose he set out specific goals objectives and activities.” Which feature of planning is depicted in this statement?

(a) planning focuses on achieving objectives
(b) planning is a primary function of management
(c) planning is pervasive
(d) planning is continuous

(ii) “Hence, he prepared an annual plan for production, sales and marketing through sales forecasting.” Which feature of planning is depicted in the statement?

(a) planning is continuous
(b) planning is futuristic
(c) planning in was decision making
(d) planning is a mental exercise

(iii) “Thus, he invented and evaluated different alternative through which the farmers could be utilised throughout the year.” Which feature of planning is depicted in the statement?

(a) planning is pervasive
(b) planning is continuous
(c) planning is futuristic
(d) planning involves decision making

(iv) “He used his foresight, logical & systematic thinking based on analysis of olfaction examined and evaluated all the alternative.” Which feature of planning is depicted in this statement?

(a) planning focuses on achieving objectives
(b) planning is a primary function of management
(c) planning in voice decision making
(d) planning is a mental exercise

Case-Study Based MCQ Answers

1. (i)(b) (ii)(a) (iii)(a) (iv)(c)

2. (i)(a) (ii)(b) (iii)(d) (iv)(d)

Final Words

From the above article, you have practiced Planning MCQ of Class 12 Business Studies Chapter 4. We hope that the above-mentioned MCQs for term 1 of chapter 4 Planning MCQ would will surely help you in your exam. 

If you have any doubts or queries regarding Planning MCQ (Multiple Choice Questions) with answers, feel free to reach us and we will get back to you as early as possible.