For CBSE 12th Business Studies Board exams go through the important set of questions of Chapter 4 (Planning). The long & short questions are taken from NCERT and other reference books. Practicing these questions will help in scoring well in the upcoming CBSE board exam.
Q1- Why rules are considered to be plans?
Ans- Rules are the standard & specific statements informing about what needs to be done. They are considered to be Plans because they both are very familiar in nature. The simplest of plans are known as rules.
Q 2- Is it possible for planning to work in a changing environment? Give a reason to justify your answer.
Ans- No, planning cannot work properly in a changing environment. Due to the dynamic and changing nature of the business environment, it is not possible that planning will work efficiently.
Q3- What are the strategic decisions that are taken by business organisations?
Ans- Strategic decisions include decisions like if the organisation is going to continue to be in the same line of business, or develop the new lines of activity with the existing business or plan on acquiring a dominant position in the same market.
Q 4- Mention any six importance of planning.
Ans- The importance of planning are mentioned in the points below:
- Reduces the risk of uncertainty
- Encourages creative ideas
- Gives proper direction to any course of action
- Wasteful & unnecessary activities are reduced
- Promotes decision making
- Maintains standards of controlling
Q5- If planning also means making the details for the future, why it does not ensure success?
Ans- Planning also involves working out the details of the future but since the upcoming events and changes are unpredictable, planning does not ensure success. There is a number of external forces that keep affecting the functioning of a business. These forces are changeable and complex in nature.
Q6- Mention the main aspects that are involved in the definition of planning?
Ans- The main aspects that must be considered in the definition of planning are:
- Time Period: The plan must be made for a definite period of time. Planning may prove futile, if not done in a time frame.
- Setting a Course of Action: Out of the various available alternatives, the best course of action must be decided.
- Defining Objectives: It is required to have a definite objective to achieve for which the planning has to be done.
Q7- What are the reasons that organisations are not always able to accomplish their objectives?
Ans- To achieve their objective, organisations make plans. It may not always lead to successful achievement of their goals. Few of the reasons are given below:
- Rigidness: Planning is rigid by Once a plan to achieve the objective and is formulated, it will not be easy for the manager to change it.
- Gigantic Costs: Making of plans involves costs in terms of time and money.
- Time Consuming: Planning formulation is a very time-consuming task. It involves looking forward to unforeseen future situations.
Q8- Name the qualities that are required for planning?
Ans: The qualities that are important for planning are Intelligence, Imagination, Foresight and Sound Judgement.
Q9- Mention any 3 limitations of planning the functions of the management.
Ans- The limitations of planning are:
- Planning reduces the organisational creativity
- Making a plan leads rigidity
- It might happen that planning will not work in an effective environment
Q 10- Planning leads to a reduction in creativity. Critically comment. (Hint: both the points - Planning promotes innovative ideas and planning reduces creativity–will be given).
Ans- Formulating plans and policies is an intellectual process that involves creativity and innovation on the managers part. But once a plan is designed, the manager may not be able to change it which reduces creativity.