CBSE Class 12th Business Studies Question Paper - TS4 (5 Question Papers)

Business Studies - Class 12th (CBSE) - 5 Question Papers Included for Chapter 4: Planning

Planning is the primary function of management. Without this function, it is difficult to steer a business in any direction, whether that means increasing sales, reducing costs, or hiring more employees.

Now, let's solve every question related to this topic using our study material.

We have prepared a list of five question papers to help you score well in your CBSE Class 12 board exams.

Before you proceed to the test, below are the quick details:

• Class: XII
• Subject: Business Studies
• Chapter Name: Planning

Below are the links to the tests:

• Test 1 | Answers for Test 1
• Test 2 | Answers for Test 2
• Test 3 (Coming Soon)
• Test 4 (Coming Soon)
• Test 5 (Coming Soon)

Test 1

• Time: 45 minutes
• Maximum Marks: 20

Q1. 'Anchu Constructions', a construction company, decided to strictly implement 'No Helmet, No Entry' and put the following sign at their construction sites:

Identify the type of plan indicated by the above sign:

1. Policy
2. Rule
3. Method
4. Programme

Q2.

Assertion (A): Planning does not guarantee success.

Reason (R): Managers have a tendency to rely on previously tried and tested successful plans. It is not always true that just because a plan has worked before, it will work again. (1 mark)

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

Q3. A Sanitary Pad manufacturing company wants to become a market leader. For this purpose, the manager follows an activity with certain logical steps. The first step suggested by him is to increase profits by at least 30% in the next quarter. What will be the last step of the activity being followed by the manager? (1 mark)

1. Follow-up action
2. Identifying alternative courses of action
3. Setting objectives
4. Evaluating alternative courses of action

Q4. Yamraj, a Shipping company, has been successfully carrying out its shipping business for the past five years. Last year, it rolled out a new shipping initiative during the holiday season, with the promise to deliver all packages by a particular time before the holidays. The company had an objective of increasing its profit at a consistent rate. The unexpected high demand hassled the workers and the delivery team, causing a delay in the delivery of a large number of packages. The company did not recognise the logistical difficulties in training new staff, in order to meet its delivery schedules as promised. The complacency of the company to think that a consistent rate of profit could be maintained led to its failure. Identify the limitations of planning discussed above. (1 mark)

1. Planning is a time-consuming process
2. Planning does not guarantee success
3. Planning involves huge costs
4. Planning reduces creativity

Q5. "Failing to plan is planning to fail." Comment. (3 marks)                                                                                                          

Q6.  Rehu Auto Ltd. manufactures different types of commercial vehicles. Their sales were rupees two hundred crores in the previous year. The company decided to increase sales by 20% during the current year. It conducted internal as well as external audits for the same. Through internal audit, they analysed the strengths and weaknesses of the business across all departments. The external audit focused on the opportunities and threats in the constantly changing business environment. Thus, a comprehensive plan was prepared, taking into consideration the business environment and the necessary resources were allocated to achieve the target. The company directed its offices throughout the country to follow the plan. The company's commitment to developing effective plans to achieve a consistent increase in sales has ensured its continual growth over the past one decade. Identify and explain the two types of plans discussed above. (3 marks)                                                                                            

Q7. Manasvi Ltd. holds an Annual Management Programme every year in the month of March, in which the top managerial personnel formulate plans for the next year by analysing and predicting the future to meet future events effectively. As they are responsible for providing direction to the organisation, facts are thoroughly checked through scientific calculations. Detailed plans are prepared after discussion with professional experts. Preliminary investigations are also undertaken to find out the viability of the plan. Since it is an intellectual activity requiring intelligent imagination and sound judgment, it is mainly done by the top management. Usually rest of the members just implement the plans. Middle-level managers are neither allowed to deviate from the plans nor permitted to act on their own. The top management ensures that the expenses incurred in formulating the plans justify the benefits derived from them. State two limitations and two features of planning discussed above. (4 marks)

Q8. Explain the following statements related to the planning function of management: (6 marks)

1. Planning is closely connected with creativity and innovation.
2. Planning will be a futile exercise if it is not acted upon or implemented.
3. Planning is the most challenging activity for the management
4. Planning is a prerequisite for controlling.
5. Planning is purposeful.
6. Planning is not an exclusive function of top management.

Answers For TEST 1

Test 2

Time: 35 Minutes

Max Marks: 25

Multiple Choice Questions (1 Mark Each)

Question 1: Which feature of planning implies that planning is required at all levels of management as well as in all departments of the organisation? 

1. Planning is continuous 
2. Planning is pervasive 
3. Planning is futuristic 
4. Planning is a mental exercise

Question 2: Which type of plan is a statement of expected results expressed in numerical terms? 

1. Strategy
2. Policy
3. Budget
4. Procedure

Question 3: "Planning promotes innovative ideas" is a benefit of planning. Which of the following is its limitation? 

1. Planning involves decision making
2. Planning involves huge costs 
3. Planning focuses on achieving objectives
4. Planning is continuous

Question 4: What is the fifth step in the planning process? 

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

Assertion-Reason Questions (1 Mark Each)

Question 5:

• Assertion (A): Planning is a mental exercise. 
• Reason (R): It involves logical and systematic thinking rather than guesswork or wishful thinking. 

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

Question 6:

• Assertion (A): Planning is a guarantee of success. 
• Reason (R): It helps managers to look ahead and anticipate changes. 

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

Question 7:

• Assertion (A): Procedures are routine steps on how to carry out activities. 
• Reason (R): They are generally meant for outsiders to follow in an organisation. 

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

Short Answer Case-Based Questions (3 Marks Each)

Question 8: 'Dipesh Pvt. Ltd.' has a well-defined plan drawn up with specific goals to be achieved within a specific time frame. However, the managers are finding it difficult to adapt to the sudden changes in the government policy regarding the import of electronic components. The managers cannot change the plan because the company does not allow deviations from the original plan. Identify and explain the limitation of planning highlighted in this case.

Question 9:. Tanisha Corp. wants to increase its production capacity by 20% in the next financial year. The production manager has deduced various ways to achieve this, such as hiring more workers, buying new machinery, or increasing the working hours of the existing staff. He is now deliberating on the merits and demerits of each of these alternatives considering the objective and budget. Identify the two steps of the planning process mentioned in this case.

Long Answer Case-Based Questions (6 Marks Each)

Question 10: An automobile company, 'Parveen Motors', is facing a problem of declining market share due to increased competition. Its competitors are introducing lower-priced models for mass consumers who are price-sensitive. 'Parveen Motors' realizes that it needs to take immediate steps to improve its market standing. After conducting forecasts, it came to know that future holds many surprises. The top level of the company will brainstorm and determine the steps that will be adopted by the organization for implementing the strategy. All the departments are also undertaking planning exercises. Explain the three features of planning highlighted in the above situation.

Question 11: 'Bright Future School' has a set of managerial decisions that a certain action must or must not be taken.  It includes that all teachers must report to the school at 7:30 AM sharp. Furthermore, the school has developed the exact manner in which any requisition of art supplies is to be done for various events from the art department. The school has set a specific goal to achieve a 100% pass rate in the upcoming board examinations for Class 12. To maintain its competitive edge as a top educational institution, the school has adopted a comprehensive plan that includes acquiring modern digital infrastructure and allocating specialized resources to enhance the overall learning experience. Moreover, the school follows the broad parameters within which the admission head may function, ensuring that the process for selecting new students remains consistent and fair across all academic years. For the purpose of teacher development, the school has prescribed a way  involving on-the-job mentorship. Identify and explain the types of plans highlighted in the above case. 

Answers for Test 2

MCQs: 1(b), 2(c), 3(b), 4(b)

Assertion-Reason: 5(a), 6(d), 7(c)

Q8: Limitation: 'Planning leads to rigidity'. Explanation: Plans are specific goals with a time frame, and once made, managers may not be able to change them to cope with changed circumstances.

Q9: 1. Identifying alternative courses of action. 2. Evaluating alternative courses.

Q10: 

• Planning is pervasive: Team includes representatives from all levels (top, middle, operational).
• Planning is futuristic: Company aims to improve market standing in the future.
• Planning is a mental exercise: The team is brainstorming/thinking to determine steps, rather than just doing.

Q11: a) Types of plans: Rule, Procedure, Objective, Strategy, Policy, Method.

The End

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Continue Your Revision:

Chapter 1  |  Chapter 2  |  Chapter 3  |  Chapter 4  |  Chapter 5  |  Chapter 6  |  Chapter 7  |  Chapter 8  |  Chapter 9  |  Chapter 10  |  Chapter 11  |  Chapter 12