Though budget is a type of plan and setting goals is first step of planning, here we are asked the definition of planning. Hence, option (b) is correct.

Class 12 Business Studies Chapter 4 MCQ of Planning

Updated on July 15, 2022
by Tiwari Academy

Class 12 Business Studies Chapter 4 MCQ and Important Questions of Planning with explanation and answers for session 2024-25. All the questions are updated for Class 12 Business Studies chapter 4 to prepare for exams. Class 12 Business Studies Chapter 4 Solutions.

Class 12 Business Studies Chapter 4 MCQ

Which statement is true?

[A]. Planning and controlling are forward looking.

[B]. Planning and controlling are backward looking.

[C]. Both [a] and [b]

[D]. Planning is forward looking whereas, controlling is backward looking.

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Planning means

[A]. Controlling

[B]. Deciding in advance what is to be done in future

[C]. Budgeting

[D]. Setting goals and objectives

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Planning is no guarantee for success. This statement is

[A]. True

[B]. False

[C]. Partially true

[D]. Nothing can be said

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Not buying raw material from unfriendly countries is a tupe of which plan?

[A]. Strategy

[B]. Objective

[C]. Policy

[D]. Rule

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Concept of Planning

Planning is a way to decide in advance what to do, how to do when to do, and who is to do it. Planning bridges the gap from where we are to where we want to go. It is one of the basic but necessary managerial functions. Planning involves setting objectives and developing appropriate courses of action to achieve these objectives. Thus, it is closely connected with creativity and innovation.

Plans can be implemented after the

[A]. Setting objectives

[B]. Developing premises

[C]. Selecting an alternative

[D]. Follow up action

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Last step in planning process is to

[A]. Listing alternatives

[B]. Evaluate alternatives

[C]. Considering planning premises

[D]. Follow up action

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‘No smoking in the factory’ is an example of

[A]. Policy

[B]. Procedures

[C]. Method

[D]. Rule

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—- is a type of plan which refers to the prescribed way or manner in which a specified task has to be performed.

[A]. Policy

[B]. Method

[C]. Programme

[D]. Policy

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Importance of Planning

Planning provides directions
Planning reduces the risk of uncertainty
Planning reduces wasteful activities
Planning promotes innovative ideas
Planning facilitates decision making

Increasing sale by 20% —

[A]. Procedure

[B]. Rule

[C]. Objective

[D]. Method

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Q10

Estimated cash inflows and cash outflows are

[A]. Budget

[B]. Procedure

[C]. Programme

[D]. Rules

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Q11

Development of a new product is a ………

[A]. Procedure

[B]. Policy

[C]. Strategy

[D]. Programme

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Q12

Which of the following is not correct in the context of planning?

[A]. Planning is a mental exercise

[B]. Planning involves decision making

[C]. Planning is pervasive

[D]. Planning is one time event.

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Limitations of Planning

1. Planning leads to rigidity
2. Planning may not work in dynamic environment
3. Planning involves huge costs
4. Planning is time consuming
5. Planning does not guarantee success
6. Planning reduces creativity

Q13

Objectives are generally set by ………..

[A]. Supervisory level management

[B]. Top management

[C]. Middle level management

[D]. All of the above

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Q14

Which is not a feature of planning function of management?

[A]. Planning precedes all other functions

[B]. Planning is forward looking

[C]. Planning is an intellectual activity

[D]. Planning is guarantee to success.

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Q15

Which of the following is a limitation of planning?

[A]. Planning promotes innovative ideas

[B]. Planning provides directions

[C]. Planning facilitates decision-making

[D]. Planning is time consuming.

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Features of Planning

1. Planning focuses on achieving objectives
2. Planning is a primary function of management
3. Planning is pervasive
4. Planning is futuristic
5. Planning involves decision making
6. Planning is a mental exercise
7. Planning is continuous

Q16

Examples of single use plans are

[A]. Budgets and programs

[B]. Policies and procedures

[C]. Methods and rules

[D]. All of the above.

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Q17

Which of the following is not a limitation of planning?

[A]. Planning may not work in a dynamic environment

[B]. Planning leads to rigidity

[C]. Planning reduces creativity

[D]. Planning establishes standards for controlling.

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Q18

Which of the following is a strategy?

[A]. A set of general guidelines.

[B]. The prescribed ways or manner in which a task has to be performed.

[C]. A financial plan that is expressed in numerical terms.

[D]. A comprehensive plan for achieving the objectives of the organization.

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Q19

Developing premises reflects ………… about the future that the manager is required to make about the future.

[A]. Decisions

[B]. Forecasts about results

[C]. Assumptions

[D]. Both [a] and [c]

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Process of Planning

Setting Objectives
Developing premises
Identifying alternative courses of action
Evaluating alternative Courses
Selecting an alternative
Implementing the plan
Follow up action

Among MCQ and True/False which is more important?

From examination perspective both are important. However, last year in the CBSE examination term 1, MCQs were asked having a weightage of 40 marks per subject.

How should we solve MCQs in business studies class 12th?

MCQs in different subjects are of different types. In business studies, most of the MCQs will be straight-forward based on simple English. Therefore, there will not be much problem in answering them.

What is the most important sub-topic in chapter 4 business studies class 12th for MCQs?

The different types of plans like rules, methods, procedure, budget, programme, goals, objectives are the most important sub-topic in chapter 4 for MCQs.