Question

Class 12 Business Studies MCQ Questions of Planning with Answers?

Answer 1

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Check the below Class 12 MCQ Questions of Business Studies Planning with Answers to improve score high in exams.

1. Pervasiveness of planning indicates that planning

(a) is a top management function
(b) extends throughout the organisation
(c) is a future-oriented activity
(d) is the first element of management process

2. Which one of the following is an importance of planning?

(a) Reducing uncertainty
(b) Identifying alternatives critically
(c) Developing leadership
(d) Selecting the most appropriate plan

3. Which one of the following is not a limitation of planning?

(a) Dynamic environment
(b) Costly process
(c) Rigidity
(d) Top management approach

4. The basic role of strategy is to provide

(a) setting procedures.
(b) direction for action
(c) direction for motivation.
(d) direction for control

5. Which one of the following plans prescribes chronological steps for performing activities?

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

6. Which one of the following is a single-use plan?

(a) Strategy
(b) Rule
(c) Budget
(d) Method

7. Decision-making is the case of __

(a) Planning
(b) Organising
(c) Staffing
(d) Directing

8. ..........is a statement of expected results in numerical terms.

(a) Forecast
(b) Budget
(c) Plan
(d) Estimate

9. .....is a comprehensive plan for achieving its objectives.

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

10. ___ is the type of plan which is time-bound and linked with measurable outcome.

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

11. ...specifies the end to be achieved.

(a) Objective
(b) Strategy
(c) Policy
(d) Method

12. ___ are relevant to recurring activities.

(a) Single-use plans
(b) Standing plans
(c) Objectives
(d) Programmes

13. In 2019 alone, Swiggy has launched operations in 300 towns and cities. Swiggy follows a two-step sequence while expanding to a small town. First, it provides more laborious training to restaurants and delivery partners compared to their counterparts in the city. Second, it focuses on building scale in operations and increase the restaurant’s reach to a larger base of consumers, including optimizing kitchens, resource planning among others. Identify the type of plan being described in the above lines.

(a) Method
(b) Strategy
(c) Programme
(d) Procedure

14. Deepak is striving to earn a profit of 30% in the current financial year. Identify the type of plan being described in the above lines.

(a) Method
(b) Objective
(c) Strategy
(d) Programme

15. Which of the following is not a benefit of planning?

(a) Planning reduces overlapping and wasteful activities
(b) Planning is a mental exercise
(c) Planning provides directions
(d) Planning reduces the risks of uncertainty

16. Which of the following statements is not true with reference to planning?

(a) Planning is a pre-requisite for controlling
(b) Planning does not lead to rigidity
(c) Planning enables a manager to look ahead and anticipate changes
(d) Planning facilitates co-ordination among departments and individuals in the organisation

17. 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

18. If a firm has decided to sell its product on a cash basis only, it is part of firms

(a) Procedure
(b) Policy
(c) Method
(d) Objectives

19. Is a rule of thumb that managers use to simplify decision making.

(a) Sunk costs
(b) Framing
(c) Heuristics
(d) None of the above

20. 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

21. From which country India adopted the Five year plans: 

(a) USSR
(b) USA
(c) Australia
(d) Germany

22. Panchayati Raj system was first adopted by the state 

(a) Uttar Pradesh
(b) Gujrat
(c) Rajasthan
(d) Goa

23. Which of the following is the first step in planning?

(a) Analysing the environment
(b) Establishing objectives
(c) Selecting the best course
(d) Evaluating alternatives

24. Main purpose of Rule is:

(a) To decide that when is to be done
(b) To set the organizational objectives
(c) To Maintain Discipline
(d) To choose the best alternative

25. Development of a new product is a ___________

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

Answer 2

1. Answer: (b) extends throughout the organisation

Explanation: It implies that planning is required at all levels of management as well as in all departments of the organisation.

2. Answer: (a) Reducing uncertainty

Explanation: For example, one way to estimate the amount of time it takes something to happen is to simply time it once with a stopwatch. You can decrease the uncertainty in this estimate by making this same measurement multiple times and taking the average.

3. Answer: (d) Top management approach

Explanation: The plans are rigid in nature and have to be complied with throughout the organisation. Such rigidity of plans may be internal as well as external. Internal rigidity relates to plans, policies, programs, rules, and methods, etc.

4. Answer: (b) direction for action

Explanation: The basic role of a strategy is to provide Direction of Action. A strategy is a plan or a set of plans of action which is formulated by the management or the development team in order to attain long term organizational objectives or the overall aim of the firm.

5. Answer: (a) Procedure

Explanation: A plan differs from a set of procedures in that it is generally more specific as to who will do each task, and when it is to be done. Unlike a set of procedures, a plan may "name names" by identifying the people responsible for each item, and it should ordinarily include target dates and documentation of progress made.

6. Answer: (c) Budget

Explanation: For example, objectives, policies, strategies, rules, procedures etc., are standing plans because once formulated, they will be used for a long period and repeatedly. On the other hand, programmes and budgets are single use plans because once these are achieved, these are to be formulated again.

7. Answer: (a) Planning

Explanation: Planning is thinking of doing. Decision-making is a part of planning. Planning is the process of selecting a future course of action, where Decision-making means selecting a course of action. Planning and decision-making, organizing, leading and controlling are all interrelated.

8. Answer: (b) Budget

Explanation: A statement of expected results expressed in numerical terms for a definite period of time in the future is known as budgets. A budget is an internal tool used by management and is often not required for reporting by external parties.

9. Answer: (a) Strategy

Explanation: Strategy is a comprehensive plan for accomplishing an organisation's objectives. Policies These are general guidelines which facilitate achievement of pre determined objectives. Procedures It is a stipulated sequence of a course of action for handling activities.

10. Answer: (d) Budget

Explanation: Budget is the type of plan which is time bound and linked with measurable outcome.

11. Answer: (a) Objective

Explanation: Objectives or goals, often used interchangeably, are the ends toward which activity is aimed. They represent not only the endpoint of planning but also the end toward which all other managerial functions are aimed.

12. Answer: (b) Standing plans

Explanation: Standing plans are made to be used multiple times. I.e. again and again. These plans are formulated to guide managerial decisions and actions on problems which are recurring in nature.  Like any other plan, standing plans also include goals, procedures, methods and steps, and the ground rules.

13. Answer: (b) Strategy

Explanation: First, it provides more laborious training to restaurants and delivery partners compared to their counterparts in the city. Second, it focuses on building scale in operations and increase the restaurant's reach to a larger base of consumers, including optimizing kitchens, resource planning among others.

14. Answer: (b) Objective

Explanation: Objectives are to bring economy or revenue in managerial operations, to provide specific direction, to bring certainty in future events, to attain predetermined goals, to get victory over competitions, and to forecast.

15. Answer: (b) Planning is a mental exercise

Explanation: Planning is a mental exercise as it includes deciding and thinking ahead of time about what one can do, when it is to be done and how it is to be finished.

16. Answer: (b) Planning does not lead to rigidity.

Explanation: All business activities run on the planning that is made by the managers. The managers tend to observe the procedures and the guidelines that are laid out in a plan. They change accordingly to the existing changes in the business environment.

17. Answer: (c) Intuitive decision making

Explanation: Making decisions on the basis of experience, feelings and accumulated judgement is called as Intuitive decision making.

18. Answer: (b) Policy

Explanation: It is policy of the firm because it is written in the terms of the firm that they would sale goods on cash basis only and cannot change it .Under policy every thing is pre decided by the firm to sale only on cash basis hence answer is policy.

19. Answer: (c) Heuristics

Explanation: A heuristic is a mental shortcut that allows people to solve problems and make judgments quickly and efficiently. These rule-of-thumb strategies shorten decision-making time and allow people to function without constantly stopping to think about their next course of action.

20. Answer: (a) Harrod - Domar model

Explanation: First Five Year Plan of India: It was launched for the duration of 1951 to 1956, under the leadership of Jawaharlal Nehru. It was based on the Harrod-Domar model with a few modifications. Its main focus was on the agricultural development of the country.

21. Answer: (a) USSR

Explanation: India adopted the Five Year Plans from USSR. Five-Year Plans (FYPs) are regional development plans -centralised and implemented. In 1928, Joseph Stalin initiated the Soviet Union's first Five Year Strategy.

22. Answer: (c) Rajasthan

Explanation: The system later came to be known as Panchayati Raj, which was inaugurated by the then Prime Minister Pandit Jawaharlal Nehru on 2 October 1959 at Nagaur in Rajasthan. The first elections under the Rajasthan Panchayat Samitis and Zilla Parishads Act, 1959 were held in September-October 1959.

23. Answer: (a) Analysing the environment

Explanation: Planning is a step by step process. The first step in planning process is analysing the environment. Firstly, a proper check or we can say deep observation should be made about the requirement of the environment. Then only the objectives to be fulfilled will set up properly.

24. Answer: (c) To Maintain Discipline

Explanation: In any organisation, rules are the code of behaviour or basic guidelines. It states what should be done and what should not be done.

25. Answer: (a) Programme

Explanation: NPD is the process of establishing a new product, from concept generation to market launch. In simple terms, it is nothing more than the set of actions that puts your idea into effect. The development includes a number of stages that any new product experiences.