MCQ Chapter 4 Planning Class 12 Business Studies

Please refer to Planning MCQ Questions Class 12 Business Studies below. These MCQ questions for Class 12 Business Studies with answers have been designed as per the latest NCERT, CBSE books and syllabus issued for the current academic year. These objective questions for Planning will help you to prepare for the exams and get more marks.

Planning MCQ Questions Class 12 Business Studies

Please see solved MCQ Questions for Planning in Class 12 Business Studies. All questions and answers have been prepared by expert faculty of standard 12 based on latest examination guidelines.

Question. Making assumptions for future is called
(a) Making derivative plans
(b) Making policy
(c) Setting planning premises
(d) All of the above.

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

Question. Match the following

COLUMN I	COLUMN II
a) Mental exercise	(i) Looking ahead and regarded as forward looking.
b) Futuristic	(ii) Intellectual activity of thinking rather than doing
c) Continuous	(iii) Need for a new plan based on future requirements and needs.

(a) (ii),(i),(iii)
(b) (i),(iii),(ii)
(c) (iii),(ii),(i)
(d) none of these

Question.Generally, it is thought that planning is related to the planning cycle. It means that a plan is framed, it is implemented and it is followed by another plan and so on. The above statement is related to a feature of planning, identify it.
(a) Planning is continuous.
(b) Planning is futuristic.
(c) Planning involves decision making.
(d) Planning is pervasive.

Question. All other managerial functions are performed within the framework of the plans drawn. Identify the related feature of planning.
(a) Planning focuses on achieving objectives.
(b) Planning is pervasive.
(c) Planning is futuristic.
(d) Planning is primary function of management D

Question. During partition, Kundan Lal came to Mumbai from Lahore with a lot of wealth. Keeping in view his innate ability to visualize and create things, he decided to work as a junior assistant in a film studio. Over a period of time, as he gained experience and his work was well acclaimed, he decided to set up his own film studio. Initially he was himself looking into every aspect of the business, butas his work increased manifolds and his own productivity reduced with age, he hired Jummy as manager. Jimmy being immature in his work started giving bookings for the studio haphazardly. He would never decide anything in advance or do any kind of forecasting of events. This led to lot of confusions and conflicts. As a result, the goodwill earned by Kundan Lal over the years began to decline.In context of the above case. Identify and explain the function of management which Jimmy failed to perform by quoting lines form the paragraph.
(a) Planning
(b) Directing
(c) Controlling
(d) staffing

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 ‘health food’ at reasonable price. She discussed her idea with her teacher (mentor) who encouraged her. After analyzing various options for starting her business venture, they shortlisted the option to sell readymade and ‘ready to make ‘vegetable shakes and sattu milk shakes. Then they both weighed the pros and cons of both the shortlisted options. Name the function of management being discussed above.
(a) Planning
(b)Organizing
(c) Directing
(d) Controlling

Question. Planning requires logical and systematic thinking rather than guess work or wishful thinking. Identify the related feature of planning.
(a) Planning is futuristic.
(b) Planning is a mental exercise.
(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objectives.

Question. Identify the statement which is not correct.
(a) Planning is required a top-level management only.
(b) Planning facilitates decision-making
(c) Planning is a time consuming process
(d) All are correct.

Question…………… Are the anticipated environments in which plans are expected to operate.
(a) Planning premises
(b) Forecasting
(c) Objectives
(d) none of these.

Question. Planning provides direction is a
(a) Importance of planning
(b) Limitation of planning
(c) Characteristics of planning
(d) Method

Question. In a business organization, the manager is busy in making plans for the coming year. The company has launched so many new products in the market. The main question before the company is how to advertise the new products. In the answer to this question, the planners collected several suggestions; namely, the job of advertisement should be done by the company itself; for advertisement the help of outsourcing of services should be taken; some of the work of advertisement should be done by the company itself and for some of it the outsourcing should be depended on. Still, other answers to this question are being looked for. Which particular stage of the ‘Planning Process’ in the above event is being completed by the managers?
(a) Setting objectives
(b) Developing premises
(c) Identifying alternative courses of action
(d) Evaluating alternative courses

Question. Local Self Government intends to improve
(a) Economic condition
(b) Social condition
(c) Both economic and social condition
(d) None of these.

Question. Planning Commission was scrapped on
(a) 2015
(b) 2014
(c) 2017
(d) 2012

Question. Panchayati Raj is a
(a) Two tier system
(b) Three tier system
(c) Four tier system
(d) None of the above.

Question. A rolling plan refers to a plan which
(a) Does not change its target every year
(b) Changes its allocation every year
(c) Changes its allocation and target every year
(d) Changes only its target every year

Question. Mr. Ram is the C.E.O. in ‘Ram Lakhan General Pvt. Ltd.’ He is the head of the team making plans for the company also. He gave a number of suggestions to the team out of which the two main suggestions were: First,Mr. Ram said that they had to face a lot of problem in getting the main raw material used in the company , but in the next year it was possible that they could get it easily. Secondly, in the second coming year the rate of bank interest was most likely to increase, which would affect the company’s costs. He laid emphasis on this matter that both of his remarks should be kept in view while preparing the plans. Clarify to which stage of the planning process the above event is related.
(a) Setting objectives
(b) Developing premises
(c) Identifying alternative courses of action
(d) Evaluating alternative courses

Question. Super Fine Rice Ltd. has the largest share of 55% in the market. The company’s policy is to sell only for cash. In 2015, for the first time company’s number one position in the industry has been threatened because other companies started selling rice on credit also. But the managers of Super Fine Rice 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 Super Fine Rice Ltd. The above situation is indicating two ‘limitations of planning’ which led to decline in it sales. Identify one of them.
(a) Planning creates rigidity
(b) Planning reduces creativity
(c) Planning involves huge costs
(d) Planning does not guarantee success

Question. Planning cannot foresee everything, and thus, there may be obstacles to effective planning. Identify the related limitation of planning.
(a) Planning leads to rigidity.
(b) Planning may not work in a dynamic environment.
(c) Planning does not guarantee success.
(d) Planning reduces creativity.

Question. Mrs Madhvi Bhire is working as a manager in ‘Taarik and Company’. She is involved in a problem related to a particular product. She is unable to decide whether she should produce that product in her own company or she should buy it from the market. She studied both the options deeply with the help of specialists. In order to maintain the company’s impression on the minds of the customers, she decided to produce the product in the company itself. She is hopeful of the complete success of this decision. Identify the stage of the ‘planning process’ on which Mrs Madhvi reached the final decision.
(a) Evaluating alternative courses
(b) Selecting an alternative
(c) Implementing the plan
(d) Follow-up action

Question. Identify the correct sequence of steps involved in the planning process.
(a) Evaluating alternative courses, Identifying alternative course of actions, Setting objectives, Developing premises
(b) Setting objectives, Identifying alternative course of actions, Evaluating alternative courses, Developing premises
(c) Setting objectives, Developing premises, Identifying alternative course of actions, Evaluating alternative courses
(d) Setting objectives, Developing premises, Identifying alternative course of actions, Evaluating alternative courses

Question. Pervasiveness of planning indicates that planning
(a) is a top management function.
(b) extends throughout the organization.
(c) is a future-oriented activity.
(d) is the first element of management process.

Question. Saurabh decided to start a chocolates manufacturing business. He set the target of earning 10% profit on sales in the first year. As a good businessman, he was concerned about the future of the business, which was uncertain. He gathered information that the demand for chocolates is increasing day by day. He used this information as the base for future planning and shared it with his team. On the basis of the gathered information, he scheduled a meeting in the following week to find innovative ways to achieve the objectives. Identify one out of the two steps, which have been followed by Saurabh that are related to the process of one of the functions of management.
(a) Follow up action
(b) Selecting an alternative
(c) Developing Premises
(d) Evaluating alternative courses

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

Question. Planning results in decreasing
(a) Coordination
(b) Proper use of resource
(c) Future uncertainties
(d) Control

Question. “GRAND INNOVATION CHALLENGE” was launched by
(a) NITI Aayog
(b) Planning Commission
(c) National Planning Committee
(d) Finance Commission

Question. Who appoints the Vice-Chairperson of NITI Aayog
(a) The Prime Minster
(b) The President
(c) The Chief Executive Officer
(d) The Union Minister

Question. Planning commission of India is :
(a) A constitutional body
(b) An independent and autonomous body
(c) A statutory body
(d) A non statutory body

Question. Mr Reeshabh Bhandari is the chief manager in ‘Bhandari PustakParkashans’. He is fond of continuing to present innovative ideas while planning for his business. His ideas are usually very significant. It has been observed several times that these very ideas take the form of concrete plans. This is the very reason that Mr Bhandari’s contribution to the growth and prosperity of the company continues to be quite great. Identify the ‘importance of planning’ described above.
(a) Planning provides direction.
(b) Planning reduces the risk of uncertainty.
(c) Planning reduces overlapping and wasteful activities.
(d) Planning promotes innovative ideas.

Question…….. is a feature of planning also referred to as primacy of planning.
(a) Pervasive
(b) Primary function of management
(c) Continuous
(d) Integrating

Question. Planning is futuristic.
(a) False
(b)True

Question. Radha Rani is the C.E.O. of ‘Radhika Sales Pvt. Ltd.’ Besides other managerial activities, she is an expert in planning. While planning for her company, she noticed that at first several options are gathered, then their evaluation is done and finally the most suitable option is selected. Once she was confronted with such a problem as had only one option available for its solution. To select this very option was her compulsion. Now, for the first time she realized that the necessity of planning is there only when several options are available. Identify the feature of planning in the event stated above.
(a) Planning is continuous.
(b) Planning is futuristic.
(c) Planning involves decision making.
(d) Planning is pervasive.

Question. Rakhi Dua is employed at the middle level management of ‘Punjab Food Suppliers’. Working in her department she noticed that they are asked to implement the plans prepared by the top management without making any change. Many a time, even though wishing to do so, she cannot make any change in them. As a result of it, the initiative and creativity of the managers at the middle level management, gets killed. Not only this, several times, even opportunities of advantage slip out of hand. Rakhi is very unhappy with this state of affairs of the company, and she is thinking of shifting to some other company at the earliest. Identify the ‘limitation of planning’ in the above event.
(a) Planning leads to rigidity.
(b) Planning may not work in a dynamic environment.
(c) Planning reduces creativity.

Question. What should be stated clearly for all departments, units and employees
(a)Methods
(b) objectives
(c)Values
(d) options

Question.Planning means
(a) arrange the resources
(b) think in advance
(c) appoint the right person
(d) monitor the activity

Question. Which limitations highlighted here, Once plans decided the future course of action and managers may not be in a position to change it.
(a) Does Not Work in a Dynamic Environment
(b) Reduces morality
(c) Creates Rigidity
(d) time-consuming process

 Question.It requires application of mind involving foresight, intelligent, imagination and sound judgement. Which feature of planning is indicate here.
(a) It is Futuristic
(b) It involves decision making
(c) It is mental exercise.
(d) It is continuous

Question. In which step of planning process Pros and cons of each alternative is examined
(a) Selecting an alternative
(b) Developing Premises:
(c) Evaluating alternative courses
(d) Setting Objectives

Question.Name the type of plan which serve as guide for overall business and defines the end result.
(a) policy.
(b) method
(c) procedure 

Question. Planning is an activity which usually lowers down middle level management?
(a)Creativity
(b) significance
(c) salary
(d) worth

Question. One of the following is a feature of planning
(a) It is a lengthy process
(b) It is costly process
(c) It is time consuming process
(d) It is a mental exercise

Question.Identify the type of plan which has least flexibility.
(a) strategy
(b) Rules
(c) policy
(d) objective 

Question. What the manager have to apply for selecting the best possible course of action
(a)Algebra
(b) calculus
(c) Permutations and combinations
(d) luck

Fill In The Blanks:

Question. Planning involves setting _______ and predicting future conditions. 

Question. The positive and negative aspects of each proposal need to be ________ in the light of the objective to be achieved.

Question. Planning requires taking _______ since it involves making a choice from options. 

Question. Useless and redundant activities are minimized or _________ by Planning.

Question. Specific statements to tell what is to be done is called as_______ .

Question. One time event plan is a _______.

Question. Planning is________ consuming process and it delays action.

Question. Planning is basically an _______ activity of thinking. 

Question. Planning are prepared for a_______ period of time. 

Question. Efficiency in routine decisions can be enhanced by _______.

Question. The social, legal, economical and technological environment will effect an organisation’s _______ .

Question. The first and foremost step of planning process is ________ objectives. 

True/ False :

Question. Statement of expense and income for a specified period is called budget.

Question. Time factor should not taken into consideration during planning.

Question. After setting objectives, the next step of planning process is Evaluating alternative courses

Question. Implementing the plan means putting the plan into action

Question. Planning premises means systemic and logical estimate for the future factors affecting planning

Question.If there is planning, employees would be working in different direction and the organization would be able to achieve its desired goals.

Question. Organising helps the manager to look into the future.

Question. Planning is an exclusive function of top management.

Question. Strategy defines the direction and scope of an organisation in long run.

Question. Planning is a prerequisite for controlling.

Match the following:

Question.

1. Planning is required at all levels of management as well as in all departments of the organization.	a. Planning focuses on achieving objectives
2. Plans are redrawn at the end of the period and new plans are drawn on the basis of new requirements and future conditions	b. Planning is pervasive.
	c. Planning is continuous

Question.

1. It implies peeping into the future, analyzing it and predicting it.	a. Planning is pervasive
2. Planning is required at all levels of management as well as in all departments of the organization.	b. Planning focuses on achieving objectives
	c. Planning is futuristic

Question.

1. Planning has no meaning unless it contributes to the achievement of predetermined organizational goals.	a. Planning is futuristic
2. It implies peeping into the future, analyzing it and predicting it.	b. Planning focuses on achieving objectives
	c. Planning is continuous

Question.

1. Plans are redrawn at the end of the period and new plans are drawn on the basis of new requirements and future conditions	a. Planning focuses on achieving objectives
2. Planning has no meaning unless it contributes to the achievement of predetermined organizational goals.	b. Planning is futuristic
	c. Planning is continuous.

Question.

1. The manager makes a choice from amongst various alternative courses of action.	a. Reduces risk of uncertainty
2. Planning is a prerequisite for controlling	b. Facilitates decision making
	c. Establishes standards for controlling

Question.

1. By deciding in advance the task to be performed, planning shows the way to deal with changes and uncertain events	a. Facilitates decision making
2. The manager makes a choice from amongst various alternative courses of action.	b. Reduces risk of uncertainty
	c. Establishes standards for controlling

Question.

1. Planning is a prerequisite for controlling	a. Reduces risk of uncertainty
2. By deciding in advance the task to be performed, planning shows the way to deal with changes and uncertain events.	b. Reduces overlapping and wasteful activities

Question.

1. Departments and Individuals in the organization are able to work in coordination	a. Promotes innovative ideas
2. Planning is a prerequisite for controlling	b. Provides direction
	c. Establishes standards for controlling

Question.

1. Planning serves as the basis of coordinating the activities of different divisions, departments and individuals.	a. Provides direction
2. Departments and Individuals in the organization are able to work in coordination.	b. Reduces overlapping and wasteful activities
	c. Facilitates decision making

Question.

1. It is the most challenging activity for the management as it guides all future actions.	a. Establishes standards for controlling
2. Planning serves as the basis of coordinating the activities of different divisions, departments and individuals.	b. Reduces overlapping and wasteful activities
	c. Promotes innovative ideas