CBSE Class 12th Business Studies Worksheets - W4a

Free Business Studies - Class 12th (CBSE) - Worksheet - W4a - Planning

Welcome to our platform that provides you with multiple choice questions (MCQs) of class 12th (CBSE) for Chapter 4: Planning.

Perform all these questions to refine high-order thinking, master objectives, premises, alternatives, and decision-making under one roof.

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• Quick MCQs to check your subject understanding.

• Practice questions that look like board-exam questions.

How It Helps Class 12 CBSE Students?

• Gives you question patterns just like the exam, helping you answer faster and more accurately.

• Builds higher-order thinking through case-study practice, boosting scores on application-based questions.

MCQs for Class 12th CBSE Business Studies

Q1. 'It involves application of high-order thinking skills and intellectual faculties, involving vision and foresightedness to decide the things to be done in the future.’ Which feature of planning is stated in the above line?

1. Planning is futuristic.
2. Planning is pervasive.
3. Planning is a mental exercise.
4. None of the above.

Q2. Which of the following statement is false with respect to planning?

1. It is one of the basic functions of management.  
2. It requires taking decision.
3. Planning is connected with creativity and innovation.
4. None of the above.

Q3. R-Ox Ltd. wants to increase its market share by 4.5 % in the next two years. It spent a lot of money to hire specialised people for framing its plans, collecting important facts about the environment, who took a lot of time to frame plans for the company. Competition has started increasing and it is not able to beat its competitors because it already spent a huge amount.

The plan failed and the company suffered a huge loss. Identify the limitation of planning stated in the given case.

1. Planning involves huge cost.  
2. Planning may not work in a dynamic environment.
3. Planning is a time-consuming process.
4. All of the above.

Q4. __________________ step in the process of planning is considered as the ‘real point of decision-making’.  

1. Setting objectives.  
2. Selecting an alternative.  
3. Implementation of plan.  
4. Developing premises.

Q5. 

• ASSERTION (A): Planning is a time-saving process.
• REASON (R): The success of an enterprise is possible only when plans are properly drawn up and implemented.  

1. Both (A) and (R) are true, and (R) is the correct explanation of (A).  
2. Both (A) and (R) are true, and (R) is not the correct explanation of (A).  
3. (A) is true, but (R) is false.  
4. (A) is false, but (R) is true.

Q6. 

• ASSERTION (A): Developing planning premises is the primary step.  
• REASON (R): Objectives are end results which the management wants to achieve by its operations. 

1. Both (A) and (R) are true, and (R) is the correct explanation of (A).  
2. Both (A) and (R) are true, and (R) is not the correct explanation of (A).  
3. (A) is true, but (R) is false.  
4. (A) is false, but (R) is true.

Q7. Match Column I with the correct explanation in Column II.

1. A–(iii), B–(ii), C–(i)  
2. A–(ii), B–(i), C–(iii)  
3. A–(i), B–(ii), C–(iii)  
4. A–(iii), B–(i), C–(ii)

Q8. A company is manufacturing garments. The manager wants to increase profits by purchasing new high-speed machines or increasing the sale price or using waste materials in manufacturing stuffed toys. He decided that “using waste material” is the best solution for him. Identify the function of management involved.  

1. Directing 
2. Planning 
3. Organising 
4. Controlling

Q9. ‘Ronak Cycles’ consistently met its target of a 10% increase in sales every year. Encouraged by the good track record, the Managing Director kept an ambitious target of a 15 % increase for the next year. The same year, two new companies entered the market and the firm did not meet its target. Identify the limitation of planning reflected here.  

1. Planning may be rigid.
2. Planning may not work in a dynamic environment.
3. Planning does not guarantee success.
4. None of the above.

Q10. Gungun, the production manager at Bhartiyam Ltd., plans to make the company of the decade. She sets objectives and prepares strategies and action plans keeping the internal as well as external forces in mind so that departments and individuals can decide what action should be taken and in which direction. Identify the importance of planning highlighted.  

1. Planning reduces uncertainties.
2. Planning reduces overlapping.
3. Planning provides direction.
4. Planning facilitates decision-making.

Q11. “An innovative course may be adopted by involving more people and sharing their ideas.” Identify the step of the planning function highlighted above.  

1. Setting objectives  
2. Developing premises  
3. Identifying alternative courses of action 
4. Evaluating alternative courses

Q12. Match Column I with Column II.

1. A–(iii), B–(ii), C–(i), D–(iv) 
2. A–(ii), B–(iii), C–(i), D–(iv) 
3. A–(i), B–(ii), C–(iii), D–(iv) 
4. A–(ii), B–(iv), C–(i), D–(iii)

Q13. 

• ASSERTION (A): Through planning, uncertain events or changes can be anticipated and eliminated.
• REASON (R): Planning reduces the risk of uncertainty.  

1. Both (A) and (R) are true, and (R) is the correct explanation of (A).
2. Both (A) and (R) are true, and (R) is not the correct explanation of (A).
3. (A) is true, but (R) is false.
4. (A) is false, but (R) is true.

Q14. “Detailed plans are prepared after discussion with professional experts. Preliminary investigations are undertaken to find out the viability of the plan. Middle-level managers are neither allowed to deviate from the plans nor permitted to act on their own.” Identify the limitation of planning highlighted above.

1. Planning leads to rigidity.
2. Planning reduces creativity.
3. Planning is a time-consuming process.
4. Planning involves huge cost.

Q15. “The top managerial personnel formulate plans for next year by analysing and predicting the future to meet events effectively. Since it is an intellectual activity requiring intelligent imagination and sound judgement, it is mainly done by the management.” Identify the feature of planning highlighted above.  

1. Planning focuses on achieving objectives.
2. Planning is futuristic.
3. Planning is pervasive.
4. Planning is a mental exercise.

Q16. 

• ASSERTION (A): Sales forecasting is the basis on which a business firm prepares its annual plan for production and sales.  
• REASON (R): Planning is a primary function of management.  

1. Both (A) and (R) are true, and (R) is the correct explanation of (A).
2. Both (A) and (R) are true, and (R) is not the correct explanation of (A).
3. (A) is true, but (R) is false.
4. (A) is false, but (R) is true.

Q17. Through correct foresight and logical, systematic thinking based on analysis of all facts, all alternatives were examined and evaluated. Raman presented a plan to the farmers where, after harvesting paddy, vegetables could be grown. Identify the step of planning indicated in the above case.

1. Evaluating alternative courses.
2. Identifying alternative courses of action.
3. Selecting an alternative.
4. Both (a) and (b).

Q18. Name the type of plan which is time-bound and linked with measurable outcome.

Q19. ______________________ are formalised and standardised ways of accomplishing repetitive and routine jobs.  

1. Budget
2. Method
3. Objectives
4. Strategy

Q20. Policy is a type of plan which is in the form of general statements and channelises energies towards a particular direction and helps in solving routine problems. (TRUE/FALSE)

The End

Do you want to solve more of these class 12th Business Studies (CBSE) question papers? Follow the below list:

• Test Series of Five-Question Papers on Planning
• Worksheet of Planning (New)

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