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Please refer to the MCQ Questions for Class 12 Business Studies Chapter 4 Planning with Answers. The following Planning Class 12 Business Studies MCQ Questions have been designed based on the latest syllabus and examination pattern for Class 12. Our experts have designed MCQ Questions for Class 12 Business Studies with Answers for all chapters in your NCERT Class 12 Business Studies book.
Planning Class 12 MCQ Questions with Answers
See below Planning Class 12 Business Studies MCQ Questions, solve the questions and compare your answers with the solutions provided below.
Question. 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
Answer
A
Question. Which one of the following is not a limitation of planning?
(a) Dynamic environment
(b) Costly process
(c) Rigidity
(d) Top management approach
Answer
D
Question. Which one of the following is a step of planning?
(a) Analysis of organisation structure
(b) Analysis of environment
(c) Analysis of employee behaviour
(d) Analysis of employee morale
Answer
B
Question. The basic role of strategy is to provide
(a) setting procedures.
(b) direction for action.
(c) direction for motivation.
(d) direction for control.
Answer
B
Question. Which one of the following is a single-use plan?
(a) Strategy
(b) Rule
(c) Budget
(d) Method
Answer
C
Question. 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.
Answer
B
Question. Decision-making is the case of __________.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing
Answer
A
Question. __________ is a statement of expected results in numerical terms.
(a) Forecast
(b) Budget
(c) Plan
(d) Estimate
Answer
B
Question. _________ is the type of plan which is time-bound and linked with measurable outcome.
(a) Strategy
(b) Policy
(c) Rule
(d) Budget
Answer
D
Question. __________ is a feature of planning also referred to as primacy of planning.
(a) Pervasive
(b) Primary function of management
(c) Continuous
(d) Integrating
Answer
B
Question. __________ is a comprehensive plan for achieving its objectives.
(a) Strategy
(b) Method
(c) Rule
(d) Policy
Answer
A
Question. Which one of the following plans prescribes chronological steps for performing activities?
(a) Procedure
(b) Rule
(c) Policy
(d) Method
Answer
A
Question. _________ is a standardised way or manner of performing a routine activity considering its objectives.
(a) Procedure
(b) Method
(c) Rule
(d) Programme
Answer
B
Question.Which is a type of plan:
(a) Organizing
(b) Budget
(c) Directing
(d) Fiscal budget
Answer
B
Question.Rahim wanted to start with a stationery app to help students of schools and college to provide stationery to them. He felt that students were not able to get the needed stationer at easy and hence wanted to provide the stationery directly to students in the school. He list out the various ways of setting up this business and finally selected the best way to set up this business is by developing an app. Suggest what should be the next step of him:
(a) Developing premises
(b) Identifying the alternative course of action.
(c) Implementation of plan
(d) Follow up action.
Answer
C
Question.In response to general increase in demand for 4G mobile phones, a company decides to modernize its plant to produce them. This is an example of which type of plan.
(a) Policy
(b) Strategy
(c) Programme
(d) Objective
Answer
D
Question. National Development council was constituted in :
(a) 16 th August 1950
(b) 6th August 1952
(c) 1st August 1951
(d) 16 August 1952
(e) none of these
Answer
B
Question. The concept of Participatory Development was introduced in
(a) 1980s
(b) 1970s
(c) 1950s
(d) 2000s
Answer
B
Question. Who is the chairman of planning commission:
(a) President
(b) Prime Minister
(c) Home Minister
(d) Finance Minister
Answer
B
Question. A company plans to help government to immunize children against polio. Which type of plan is it?
(a) Objective
(b) Strategy
(c) Programme
(d) Policy
Answer
C
Question. A Planning is an activity which is done by which level of management?
(a)Top level
(b) lower level
(c)Middle level
(d) Operational
Answer
A
Question.Planning is a
(a) Continuous process
(b) Intellectual process
(c) Managerial process
(d) Tangible process
Answer
D
Question. Planning is the function of the
(a) Manager
(b) Accountant
(c) Organization
(d) Government
Answer
A
Question. Planning is a
(a) Mental process
(b) Physical process
(c) Guesswork process
(d) Physical process
Answer
A
Question. In which step of planning process the best and most feasible plan will be chosen to be implemented
(a) Selecting an alternative
(b) Developing Premises:
(c) Evaluating alternative courses:
(d) Setting Objectives
Answer
A
Question. A co. 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 concept of management involved.
(a) Effectiveness
(b) Efficiency
(c) Planning
(d) All of these
Answer
C
Question. A manager is required to make certain assumptions about the future which may be in the form of forecast. This step of planning is known as
(a) Follow up
(b) Developing Premises
(c) Evaluating alternative courses of action
(d) Identifying alternative courses of action
Answer
B
Question. Which of the following statement about planning is true?
(a) Planning promotes innovative ideas in rigid environment
(b) Planning promotes innovative ideas as employees are not allowed to deviate from plans
(c) Planning promotes innovative ideas as it guides all future actions
(d) Planning promotes innovative ideas as changes cannot be eliminated
Answer
C
Question. Planning involves thorough examination and evaluation of each alternative and choosing the most appropriate one. Identify the feature from above statement
(a) Planning is pervasive
(b) it is a mental exercise.
(c) it is continuous process.
(d) it involves decision making
Answer
D
Question. To see whether plans are being implemented and activities are being performed according to schedule in a step of planning process. Identify the step.
(a) Follow up of plan
(b) Evaluating alternative courses of action
(c) Implementation of plan
(d) Identifying alternative courses of action
Answer
A
Question. Employees become blind followers of plan as stated by superiors, so planning……….
(a) leads to improve decision-making
(b) leads to reduce creativity
(c) leads to rigidity
(d) leads to guarantee to success
Answer
B
Question. Planning is required at all the levels of management and in all the departments of an organisation. Identify the feature of planning from above statement.
(a) Planning is pervasive
(b) Planning is futuristic
(c) Planning is continuous
(d) it involves decision making
Answer
A
Question. Formation of NITI AYOG was announced in
(a) 15th August 2015
(b) 15th August 2014
(c) 26th January 2015
(d) 26th January 2014
Answer
B
Question. Panchayati Raj System is based on the vision of
(a) Mahatma Gandhi
(b) Rabindranath Tagore
(c) Rammohan Roy
(d) None of them.
Answer
A
Question. Full form of NITI Aayog is
(a) National Institute for Transforming India
(b) National Institution for transforming India
(c) National Institute for Transmitting India
(d) None of the above
Answer
B
Question. The Planning Commission was established in the year
(a) 1947
(b) 1948
(c) 1950
(d) 1965
Answer
C
Question. Planning Cannot foresee everything, thus, there may be obstacles to effective planning. Identify the related limitation.
(a) Reduces creativity
(b) Lack of flexibility
(c) May not work in dynamic environment
(d) Does not provide guarantee to success
Answer
C
Question. Identify the correct sequence of steps of planning process
(a) Setting objectives, Identify alternative courses of action, Implementation of plan, Evaluation of alternative courses of action
(b) Setting objectives, Implementation of plan, Evaluation of alternative courses of action, Identify alternative courses of action
(c) Setting objectives, Identify alternative courses of action, Implementation of plan, Evaluation of alternative courses of action
(d) Setting objectives, Identify alternative courses of action, Evaluation of alternative courses of action, Implementation of plan
Answer
D
Question. Planning has no meaning unless it contributes to the achievement of predetermined organisational goals. Identify the feature of planning from above statement:
(a) planning focuses on achieving objectives
(b) Planning is futuristic
(c) planning is continuous
(d) Planning is pervasive.
Answer
A
Fill In The Blanks:
Question. Planning is _______ exercise.
Answer
mental
Question. The detailed description of the manner in which a task is to be performed is called _______.
Answer
method
Question. Projects are similar to_______ but differ in scope and complexity.
Answer
Programs
Question. Planning means setting _______ and targets and formulating an action plan to achieve
Answer
objectives
Question. The steps to be followed in the particular circumstances are called _______.
Answer
procedure
Question. A statement of expected results expressed in numerical terms is called_______ .
Answer
budget
Question. Planning is an activity which enables a manager to look ahead and anticipate _______.
Answer
changes
Question. ‘No smoking’ is an example of _______.
Answer
rule
Question. General forms of standing plans are called_______ .
Answer
policies
Question. The Last step of planning process is follow up ________.
Answer
Action
Question. Since Planning is the first function of management, new _______ can take shape of concrete plans.
Answer
Ideas
True/ False :
Question. Routine steps to carry out activities are called programs.
Answer
False
Question. Make or Buy decision is an example of Rule in an organisation.
Answer
False
Question. Objectives may be set for the entire organization and each department or unit within the organization
Answer
True
Question. Planning provides the basis of control.
Answer
True
Question. Organising a workshop on preparation of boutique used in business studies is an example of single use plan.
Answer
True
Question. Planning tells us where to go, it provides direction and reduces the risk of uncertainty by preparing forecasts.
Answer
True
Question. Broad parameters within which a manager functions are defined as strategies.
Answer
False
Question. Changes or events can be eliminated and they can be anticipated, hence managerial responses to them not required.
Answer
False
Question. Organising helps the manager to look into the future.
Answer
False
Question. The ideal plan, of course, would be the most feasible, profitable and with least negative consequences
Answer
True
Question. The last step in the process of planning is “Plan Implementation.”
Answer
False
Question. Rule is a specific statement that prescribes what is to be done or not to be done.
Answer
True
Question. Planning premises are the actual plans about the future organisational resources.
Answer
False
Question. Rule is the prescribed way or manner in which a task has to be performed considering its objectives.
Answer
False
Question. Identifying alternative courses of action is a step in organising process.
Answer
False
Question. Method is a chronological sequence in which an activity should be performed.
Answer
False
Match The Following
Question. Match the following on the basis of planning concept
1. It involves setting objectives | (a) planning provides a rational approach. |
2. It provides direction to all. | (b) objectives provides direction for all managerial function |
(c) Planning is concerned with end results. |
Answer
1-b ,2-c
Question. On the basis of description identify Features of planning
1. Planning processes other function. | (a) Futuristic |
2. Planning is purposeful. | (b) continuous |
3. Planning essentially involves looking ahead. | (c) primary function |
Answer
1-c,2-a
Question. On the basis of following match the feature of planning.
1. Planning involves through examination and evaluation. | (a) continuous |
2. It involves peeping into future. | (b) mental exercise |
3. Continuity of planning related with the planning cycle. | (c) decision making |
(d) Futuristic |
Answer
1-c,2-d ,3- a
Question. Match the following feature with management function
1. It is forward looking and base for other function | (a) controlling |
(b) directing | |
(c) planning | |
(d) organising |
Answer
1-c
Question. Match with the concept of management given below
1. All manager’s dreams of it and strive to achieve it | (a) Directing |
2. involves the grouping of required tasks into manageable department | (b) planning |
(c) organising |
Answer
1-b ,2-c
Question. Match the following with an example
1. No smoking | (a) Policy |
2. Admission only for girls | (b) Strategy |
3. Rs.10,000 on new arrival of car | (c) Rules |
Answer
1-c ,2-a, 3- b
Question. Match the following with the importance of planning
1. Planning ensures that goals and objectives are clearly stated | (a)Planning promotes innovative idea |
2. Planning helps in avoiding confusion | (b) Establish standard for controlling |
3. Planning is prerequisite of controlling | (c)Overlapping and wasteful activities |
(d)Provides direction |
Answer
1-d,2-c, 3- b
Question. Match the following with an example
1. Rs 5,00,000 is allotted to create a pool | (a)Objective |
2. Rs.5,000 concession is given to girl child | (b) Budget |
3. Profit should be increased by 10% | (c)Policy |
Answer
1-b ,2-c ,3-a
Question. Match the following with limitation of planning:
1. Once plans are made, manager may not be in position to change them | (a)It reduces creativity |
2. Manager becomes blind follower of the plan only | (b) It leads to rigidity |
Answer
1-b ,2-a
Question. Match the following with importance of planning
1. Planning requires high thinking | (a)Facilitates decision making |
2. Planning helps to managers to take decision | (b) Promotes innovative ideas |
Answer
1-b ,2-a

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