Business studies

CHAPTER 04
Planning
Multiple choice questions
Q1.__________ provides a rational approach for setting objectives
and developing appropriate courses of action for achieving
predetermined objectives.
(a) Directing
(b) Staffing
(c) Planning
(d) Controlling
Q2. "Changes or events cannot be eliminated but they can be
anticipated and managerial responses to them can be developed." is
suggested by the following importance of planning:
(a) Planning facilitates decision making
(b) Planning promotes innovative ideas
(c) Planning provides direction
(d) Planning reduces the risks of uncertainty
Q3. The Statement "Planning is a primary function", suggests
that_______.
(a) Planning precedes other functions
(b) Planning requires logical and systematic thinking
(c) Plan is framed, it is implemented, and is followed by another plan,
and so on
(d) Planning is required at all levels of management as well as in all
departments of the organisation
Q4. Planning is closely connected with__________and_________.
(a) Responsibility and accountability
(b) Delegation and decentralization
(c) Stability and security
(d) Creativity and innovation
Q5. Which step in the process of planning will precede the step in
which the manager is required to make certain assumptions about the
future, which are the base material upon which the plans are drawn.
(a) Implementing the plan
(b) Identifying alternative courses of action
(c) Setting objectives
(d) Selecting an alternative.
Q6. Planning requires logical and systematic thinking rather than
guess work. The feature of planning being referred to in the above
statement is:
(a) Planning is a continuous process
(b) Planning is futuristic
(c) Planning is pervasive
(d) Planning is a mental exercise
Q7. "Following a pre-decided plan, when circumstances have changed,
may not turn out to be in the organisation's interest." The limitation
of planning being referred to in the above statement is _________.
(a) Planning does not guarantee success
(b) Planning may not work in a dynamic environment
(c) Planning leads to rigidity
(d) Planning is a time consuming process
Q8. If there is a plan to increase production then more labour, more
machinery will be required. This step in the process of planning will
involve organising for labour and purchase of machinery. Identify the
step in the planning process being discussed above.
(a) Identifying alternative courses of action
(b) Setting objectives
(c) Selecting an alternative
(d) Implementing the plan
Q9. Assertion (A): Planning is futuristic
Reason (R): Planning is concerned with the future which is certain and
does not require forecast
(a)Both (A) and (R) are correct
(b) (A) is correct (R) is incorrect
(c) Both (A) and (R) are correct, and R is the correct explanation of (A)
(d) Both (A) and (R) are correct, and R is not the correct explanation of
(A)
Q10. function of management bridges the gap between where we are
standing and where we want to reach
(a) Organising
(b) Staffing
(c) Directing
(d) Planning
Q11. Planners are suppose to be highly intellectual as they have to
analyse environment to make predictions regarding future, compare
various alternatives and select the best. It is related to which feature
of planning
(a) Planning involve decision making
(b) Planning is forward looking
(c) Planning is a mental exercise
(d) Planning is primary function of management
Q12. In__________step of planning process pros and cons of each
alternative is examined.
(a) Selecting an alternative premises
(b) Developing Premises
(c) Evaluating alterative course of action
(d) Setting up objective
Q13. Assertion (A): Planning enables manager to look ahead and
anticipate changes to deal with uncertain events.
Reason (R): Planning involves rational decisions.
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the
correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not
the correct explanation of Assertion (A)
(c) Assertion (A) is True but Reason (R) is False
(d) Assertion (A) is False but Reason (R) is True
Q14. Identify the correct statement.
Statement 1: If plans are properly drawn, then success of the
organization is guaranteed.
Statement 2: In terms of time, money and others, huge cost is involved
in the process of planning.
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Q15. 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 concept of management involved.
(a) Directing
(b) Planning
(c) Coordination
(d) Organising
Short / statement-based answer type questions
Q16. Define ‘planning premises ‘.
Q17. No smoking-this statement is related to which type of plan?
Explain.
Q18. McDonald co. does not give its franchise to any other co. which
is running food business. This is related to which type of plan? Explain.
Q19. "Planning is not a guarantee of success of a business." Comment.
Q20. Differentiate between 'Single Use Plan' and 'Standing Plan on the
basis of meaning.
Long / statement-based/ case-based answer type questions
Q21. 'No enterprise can achieve its objectives without systematic
planning. Do you agree with this statement? Give any five reasons in
support of your answer.
Q22. Sometimes planning fails in spite of the best efforts of
management." Do you agree? Give any five reasons in support of your
answer.
Q23. What are the steps taken by management in the planning
process? Draw a flow chart and explain.
Q24. Give the meaning of 'Procedure' and 'Method' as types of plans.
Q25. "Mobile Ltd." is a well-known automobile manufacturing
company in India. The company plans to increase the sale of its Sedan
Cars by 20% in the next quarter. In order to achieve this target, the
marketing department of the company considered the impact of
government policy on the diesel vehicles and they also anticipated the
level of competitions they might have to face. The team explored the
various available options for increase in sale like offering more
discounts, providing zero per cent finance, offering free accessories,
free service for three years, etc.
A thorough analysis of each option was done and finally company
decided to offer free service for next three years. In order to
implement the plan, they made various packages of service coupons
and communicated the same to their dealers. They also started giving
the advertisements to make the customers aware of their scheme
through various print and electronic medias.
A separate team was formed to keep a close watch on the revenue
and impact of new scheme on the sale.
In the context of the above case....
(a) Name the function of management which is being described in
above paragraph.
(b) Identify and explain any four steps involved in the process of the
function of management as identified in the above para, by quoting
the lines from it.