MCQ Question for Class 12 Business Studies Chapter 4 Planning

Check the below NCERT Planning Class 12 MCQ Questions for Business Studies with Answers available with PDF free download. MCQ Questions for Class 12 Business Studies with Answers were prepared based on the latest syllabus and examination pattern issued by CBSE, NCERT and KVS. Our teachers have provided below Planning Class 12 Business Studies MCQs Questions with answers which will help students to revise and get more marks in exams

Planning Class 12 MCQ Questions for Business Studies with Answers

Refer below for Planning Class 12 MCQ Questions for Business Studies with solutions. Solve questions and compare with the answers provided below

Question. What out of the following is the focus of planning?
(a) Budget
(b) Objectives
(c) Programme
(d) Rules

Question. Planning is the ________ function of management.
(a) First
(b) Second
(c) Third
(d) Fourth

Question. Planning is a process:
(a) Periodic
(b) Continuous
(c) Casual
(d) Annual

Question. ‘Smoking is prohibited in the factory’ what element of planning does it exemplify?
(a) Policy
(b) Rule
(c) Procedure
(d) Method

Question. Planning results in decreasing ________ .
(a) Coordination
(b) Proper use of resource
(c) Future uncertainties
(d) Control

Question. ________ gives a complete detail of doing a particular activity.
(a) Procedure
(b) Budget
(c) Programme
(d) Method

Question. Planning is helpful in increasing ________ .
(a) Cost
(b) Loss
(c) Efficiency
(d) None of these

Question. “The basis of promotion of employees will be age.” With which policy is this statement related?
(a) Personnel
(b) Sale
(c) Pricing
(d) None of these

Question. Which one of the following is not an element of planning:
(a) Rules
(b) Programme
(c) Object
(d) Staffing

Question. Which of the following system is established on the basis of direct elections?
(a) Gram Panchayat.
(b) Panchayat Samiti
(c) Zilla Parisad
(d) None of these.

Question. Architect of India’s second five year plan is:
(a) Harrod- Domar
(b) Mahalanobis 
(c) Bramanandha
(d) Chakravarti

Question. Which one of the following is the objective of the Twelfth five year plan of India?
(a) Faster and inclusive growth
(b) Faster,quick and reliable inclusive growth
(c) Faster,reliable and more inclusive growth
(d) Faster ,sustainable and more inclusive growth

Question. 73rd Constitutional Amendment Act was passed in
(a) 1991
(b) 1992
(c) 1993
(d) None of the above.

Question. Which out of the following policies will you recommend?
(a) Strict
(b) Lenient
(c) Both (a) and (b)
(d) None of these

Question. At what managerial level planning is needed?
(a) Top level
(b) Middle level
(c) Lower level
(d) All the levels

Question. “In case the debts are not paid within a month interest at a definite rate will be levied.” To what element of planning does this saying point out?
(a) Policy
(b) Rule
(c) Procedure
(d) Budget

Question. Which one of the following is not a step of planning:
(a) To forecast
(b) Establishing objectives
(c) Valuation of objectives
(d) Induction of employees on the job

Question. What do we call the quantitative details of expected results?
(a) Rule
(b) Programme
(c) Procedure
(d) Budget

Question. Which of the following is not the internal element of limitation of Planning?
(a) Capital
(b) Raw material
(c) Increase in population
(d) Machine

Question. Planning is ________ .
(a) Flexible
(b) Stable
(c) Rigid
(d) None of these

Question. When can the planning process be ignored?
(a) In ordinary situation
(b) In case of emergency
(c) Both the above
(d) In no situation

Question. Rules are ________ details.
(a) Special
(b) General
(c) Uncommon
(d) None of these

Question. ________ is the essence of Planning.
(a) Organising
(b) Controlling
(c) Forecasting
(d) Directing

Question. Which one is not the characteristic of rules:
(a) Rules are rigid
(b) Violation of rules is punishable
(c) Following rule is voluntary
(d) Rule is a sort of order

Question. It is not the feature of budget:
(a) Budget creates illusion
(b) Budget is an element of planning
(c) Budget relates to planning and control
(d) Budgets are object oriented

Question. Planning of different departments is ________ .
(a) Independent
(b) Individual
(c) Mutually dependent
(d) None of these

Question. What out of the following is the example of objective?
(a) Raising sales upto ™5000 crore
(b) Giving employment to 1000 people
(c) Raising income by 3%
(d) All of these

Question. What resources are specially kept in view in planning?
(a) Limited
(b) Unlimited
(c) Both (a) and (b)
(d) None of these

Question. Punishment can be awarded for not following a particular element of planning.
Name the element.
(a) Procedure
(b) Policy
(c) Rule
(d) Programme

Question. All the managerial functions are performed within the framework of the plans drawn. Identify the related feature of planning.
(a) Planning is futuristic
(b) Planning is primary function of a manager
(c) Planning is mental exercise
(d) Planning is pervasive

Question. Rahim wanted to start with a stationery business to reach the students of schools and colleges to provide stationery to them. He felt that students were not able to get the needed stationery easily and hence wanted to provide the stationery directly in the school. He listed out the various of setting up this business and finally selected the best way to set up this business by developing the app. Suggest what should be the next step to be followed by him:
(a) Identifying alternative courses of action
(b) Evaluating alternative courses of action
(c) Implementation of plan
(d) follow up

Question. Departments and individuals in the organization are able to work in coordination. Which importance of planning is highlighted in the above statement?
(a) Planning provides direction.
(b) Planning reduces overlapping and wasteful activities.
(c) Planning reduces the risk of uncertainty.
(d) Planning facilitates decision making.

Question. Planning instructs business organisations to follow a certain methodology. If there is a deviation in the plan, there is a possibility of loss. Which one of the following limitation is indicated here:
(a) Reduces creativity
(b) Lack of flexibility
(c) May not work in dynamic environment
(d) Does not provide guarantee to success

Question. SC/ST seats are reserved in Panchayats on the basis of
(a) Population
(b) Area
(c) Both population and area
(d) None of the above.

Question. The largest source of financing the public sector outlay of the Eight Five year plan comes from :
(a) Balance from current revenue
(b) Contribution of public enterprises
(c) Government borrowing
(d) Deficit finance

Question. The G.V.K Rao Committee was appointed by
(a) Government of India
(b) Planning Commission
(c) Block Development Office
(d) None of the above.

Question. Identify the feature of planning
(a) It leads to rigidity
(b) It reduces creativity
(c) It is pervasive
(d) It involves huge cost

Question. On the Introduction of GST act, experts in the field of business started analysing and forecasting its impact on various sectors and industries. Vivek, an established businessman attended a few seminar and conferences organised by such experts to familiarise himself with this information. He wanted to use these forecasts to reduce the uncertainty in making decisions for future in his business. Name the step of planning that will be followed after the step mentioned in the paragraph.
(a) Developing Premises
(b) Evaluating alternative courses of action
(c) Implementation of plan
(d) Identifying alternative courses of action

Question. Planning requires peeping into near future, analysing it and predicting it. Identify the related feature of planning.
(a) Planning is futuristic
(b) Planning is goal oriented
(c) Planning is mental exercise
(d) Planning focuses on achieving objectives

Question. Planning involves rational thinking to choose the best alternative among the various available alternatives in order to achieve the desired goals effectively and efficiently. Identify the related feature of planning.
(a) Planning involves decision-making
(b) Planning is primary function of a manager
(c) Planning is mental exercise
(d) Planning focuses on achieving objectives

Question. Competition in the market can also upset financial plans, sales targets have to be revised accordingly, cash budget also needed to be modified. Identify the limitation of planning.
(a) Planning may not work in dynamic environment
(b) Planning leads to rigidity
(c) Planning is time consuming
(d) Planning involves decision making

Question. Which is not a feature of planning?
(a) It focuses on achieving objectives
(b) It is the primary function of management.
(c) It is pervasive.
(d) It leads to rigidity

Question. Assertion (A) A manager is not required to make certain assumptions about future in planning process.
Reason (R) Planning is concerned with future which is uncertain.
(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.

Question. Assertion (A): Planning seeks to bridge the gap between where we are and where we want to go.
Reason (R): Planning involves setting objectives and developing appropriate courses of action to achieve these objectives. Planning provides a rational approach for achieving predetermined objectives.
(a) Both Assertion (A) and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(c) Assertion (A) is true and Reason(R) is false.
(d) Assertion (A) is false and Reason(R) is true.

Question. Assertion (A) Planning is not an exclusive function of top management or of any specific department.
Reason (R) Planning is foremost function of management.
(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.

Question. Assertion (A): Planning does not reduce overlapping and wasteful activities.
Reason (R): Planning ensures clarity in thought and action, work is carried on smoothly without interruptions.
(a) Both Assertion (A) and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(c) Assertion (A) is true and Reason(R) is false.
(d) Assertion (A) is false and Reason(R) is true.

Question. Assertion (A) Following a pre-decided plan, when circumstances have changed, may turn out to be in organisations interest.
Reason (R) The plans decide future course of action and managers may not be in a position to change it.
(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.

Question. Assertion (A) Through forecasting, future events and conditions are anticipated and plans are drawn accordingly.
Reason (R) Planning essentially involves looking ahead.
(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

Question. Assertion (A) Objectives should be stated clearly for all departments units and employees.
Reason (R) The end results do not have any significance in planning process.
(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

Question. Assertion (A) Planning is closely connected with creativity and innovation.
Reason (R): Before doing something, the manager must formulate an idea of how to work on a particular
(a) Both Assertion (A) and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(c) Assertion (A) is true and Reason(R) is false.
(d) Assertion (A) is false and Reason(R) is true.

Question. To see whether plans are being implemented and activities are performed according to schedule is also a part of planning process.
Reason (R) Monitoring the plans is equally important to ensure that objectives are achieved.
(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.

Question. Assertion (A): Planning will be a futile exercise if it is not acted upon or implemented.
Reason (R): Planning is time consuming and sometimes not much time is left for its implementation.
(a) Both Assertion (A) and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(c) Assertion (A) is true and Reason(R) is false.
(d) Assertion (A) is false and Reason(R) is true.

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