{Latest} MCQs on Planning Chapter Class 12 Business Studies - Centurion Knowledge (2022)

MCQs on Planning Chapter Class 12 Business Studies. The following MCQs on Class 12 Planning Chapter includes multiple choice questions on Introduction, Concept of Planning, Importance, limitations, Types of Planning and Planning Process.

MCQs on Planning Chapter Class 12 Business Studies are very helpful for students who want to score high in Class 12 Board Exams. Below are 70+ MCQs on Planning Chapter Class 12.

1. Planning refers to _______.

Answer: Thinking before hand.

2. Which of the following about goal is not decided in planning?

(a) When is to be done

(b) What is to be done

(c) How it is to be done

(d) Why is it to be done

Answer: Why is it to be done.

3. Which of the following is the first function of management?

(a) Staffing

(b) Planning

(c) Organizing

(d) Directing

Answer: Planning.

4. Planning is the _____ of all the managerial activities in a business.

(a) Beginning

(b) End

(c) Beginning and end both

(d) None of these.

Answer: Beginning.

5. Which of the following is a objective of planning?

(a) Anticipating future course of events

(b) Giving direction to the course of events

(c) Increasing profit by ten-fold

(d) Both a and b

Answer: Both a and b.

6. In reality, which of the following reasons truly justifies the necessity of planning?

(a) The availability of many alternatives

(b) The availability of few alternatives

(c) The non availability of alternatives

(d) None of the above

Answer: Theavailability of many alternatives.

7. Planning begins with ______.

(a) Determining policies of the business

(b) Determining strategy ofthe business

(c) Determining objectivesthe business

(d) Determining methods of achieving objectives

Answer:Determining objectivesthe business.

8. Planning is performed at the following level of management:-

(a) Lower level of management

(b)Middle level of management

(c)Top level of management

(d) All of the above

Answer: All of the above.

9. Which of the following statement correctly justifies the process of planning?

(a) Planning is a continuous process

(b) Planning is a casual process

(c) Planning is done annually

(d) Planning is done once

Answer: Planning is a continuous process.

10. The primary function of management is ______.

(a) Planning

(b) Staffing

(c) Directing

(d) Organizing

Answer: Planning.

11. Planning is also known as ______ exercise.

(a)Mental

(b) Physical

(c)Both a and b

(d) None of the above

Answer: Mental.

12. Planning is called mental exercise because _______.

(a) It is related to thinking after the job is done

(b) It is related to thinking before doing something

(c) It involves physical energy

(d) None of the above

Answer:It is related to thinking before doing something.

13. The different plans of action under planning are mainly related to the _____ course of period.

(a) Past

(b) Present

(c) Future

(d) All of the above

Answer: Future.

14. Planning results in the reduction of _______.

(a) Uncertainties

(b) Innovation

(c) Efficiency

(d) Profit

Answer: Uncertainties.

15. Among the following option, select the one which is not a feature of planning.

(a) Planning is pervasive

(b) Planning is a continuous process

(c) Planning is related to past

(d) Planning involves decision making

Answer: Planning is related to past.

16. ______ planning leads to greater efficiency.

(a) Rigid

(b) Flexible

(c) Stable

(d) None of the above

Answer: Flexible.

17. Out of the following environments, planning performs better in :-

(a) Stable environment

(b)Dynamic environment

(c)Highly dynamic environment

(d) None of the above

Answer: Stable environment.

18. Planning is helpful in increasing ______.

(a) Cost

(b) Waste

(c) Risk

(d) Efficiency

Answer:Efficiency.

19. A good plan should always be :-

(a) Rigid

(b) Flexible

(c) Stable

(d) Expensive

Answer:Flexible.

20. When can one say that the other functions of management apart from planning, become meaningless?

(a) When planning does not determine the objectives

(b) When planning does not determine the methods of achieving the objectives

(c) When planning is disregarded as a function of management

(d) All of the above

Answer: All of the above.

21. The process of planning can be ignored in the case of :-

(a) Emergency situation

(b) Ordinary situation

(c) Both a and b

(d) None of these.

Answer: Emergency situation.

22. Planning of various departments in an organization is _______.

(a) Independent

(b) Mutually dependent

(c) Individual

(d) None of these

Answer: Mutually dependent.

23. Which of the following statements stand true for planning?

(a) Planning does not guarantee success

(b) Planning does not involve any cost

(c) Planning works prefect in a dynamic environment

(d) Planning does not consume any time

Answer:Planning does not guarantee success.

24. Which of the following statements do not hold true with the concept of planning?

(a) Planning creates rigidity

(b) Planning is a secondary function

(c) Planning involves decision making

(d) Planning is a mental exercise.

Answer:Planning is a secondary function.

25. Which of the following is not a correct statement about planning?

(a) Planning is fixed

(b) Planning is rare

(c) Planning reduces innovation

(d) All of the above

Answer: All of the above.

26. Which of the following durations and conditions are most effective for planning?

(a) Short and stable

(b)Short and dynamic

(c)Long and dynamic

(d) Very long and dynamic

Answer: Short and stable.

27. ‘Planning is the primary function of management’ what does this statement exemplify?

(a) The other functions of management comes later

(b) Planning is the first important function of management

(c) Planning is required at all the levels and departments

(d) Both a and b

Answer: Both a and b.

28. ‘A Manager chooses the most appropriative alternative out of so many alternatives available while thinking’. The feature of planning being referred in this statement is:

(a) Planning is Continuous

(b) Planning is pervasive

(c) Planning focuses on achieving objectives

(d) Planning involves decision making

Answer: Planning involves decision making.

29. Under planning, everybody works in the direction and guidance of plan and cannot think of other alternatives. The following limitation of planning is referred in the above statement:

(a) Planning is time-consuming process

(b) Planning does not guarantee success

(c) Planning involves huge costs

(d) Planning reduces creativity

Answer: Planning reduces creativity.

30. Planning provides the assistance to anticipate the future changes and various activities are planned according to it. The importance of planning referred in the above statement is:

(a) Planning provides direction

(b) Planning facilitates decision making

(c) Planning reduces risk of uncertainties

(d) Planning facilitates decision making

Answer:Planning reduces risk of uncertainties.

MCQs on Planning Chapter Class 12 Business Studies

Topic No 2: Planning Process

1. Planning process for different organizations is _____.

(a) Same in identical sector

(b) Same in all the sectors

(c) Different in all the sectors

(d) None of the above

Answer: Different in all the sectors.

2. The number of steps in planning are concerned with _____.

(a) Size of the organization

(b) Goodwill of the organization

(c) Profit made by the organization

(d) Location of the organization

Answer: Size of the organization.

3. The first step in planning process includes _____ .

(a) Identification of alternative course of action

(b) Selecting best alternative course

(c) Implementation of plan

(d) Setting up objectives

Answer: Setting up objectives.

4. A manager for building up his plans makes certain assumptions about the future. What are these assumptions known as?

(a) Methods

(b) Premises

(c) Objectives

(d) Strategies

Answer:Premises.

5. Which of the following is not included in external premises?

(a) Government policies

(b)Business competition

(c) Tax rates

(d) Capital employed

Answer: Capital employed.

6. Which of the following is not included in internal premises?

(a) Interest rate

(b) Cost of raw material

(c) Cost of labor

(d) Valuation of fixed assets

Answer: Interest rate.

7. When a manager finds two equally important alternative courses, he/she should adopt _____.

(a) Combination of those alternative courses

(b) Only one alternative course

(c) Third kind of alternative course

(d) None of these.

Answer:Combination of those alternatives.

8. What is the most important step of planning process after selecting an alternative course?

(a) Evaluating alternative course

(b) Developing of premises

(c) Setting objectives

(d) Implementation of plan

Answer:Implementation of plan.

9. The other managerial functions come into action in out of the following steps of planning:-

(a) Setting objectives

(b) Developing premises

(c) Identifying alternative courses of action

(d) Implementation of plan

Answer:Implementation of plan.

10. Implementation of plan means _____.

(a) Monitoring the plans

(b) Selecting alternative plans

(c) Putting the plan into action

(d) Creating a plan

Answer:Putting the plan into action.

11. Which of the following steps of planning is concerned with constant review of plans or monitoring the plans to ensure that objectives are achieved?

(a) Implementing the plan

(b) Developing premises

(c) Selecting an alternative

(d) Follow up action

Answer: Follow up action.

12. If more people and ideas are involved in identifying the alternative course, the course adopted may be ______.

(a) Less effective

(b) Less efficient

(c) Innovative

(d) Both a and b

Answer: Innovative.

13. Which of the following cannot be included in planning premises?

(a) Name of the organization

(b) Interest rate

(c) Cost of machinery

(d) Demand for a product

Answer: Name of the organization.

14. Select the correct order of steps involved in planning process:-

(a) Selecting Objectives> Selecting an Alternative> Evaluating alternative courses> Follow up Action

(b)Selecting Objectives> Developing Premises> Implementing the Plan> Evaluating Alternative Courses

(c)Selecting Objectives>Evaluating Alternative Courses>Selecting an Alternative> Implementing the Plan

(d)Selecting Objectives>Selecting an Alternative>Follow up Action> Follow up Action

Answer:Selecting Objectives>Evaluating Alternative Courses>Selecting an Alternative> Implementing the Plan.

15. Which of the following steps of planning process exceeds implementing the plan?

(a) Selecting an alternative

(b) Evaluating alternative courses

(c) Developing premises

(d) Follow up action

Answer: Follow up action.

MCQs on Planning Chapter Class 12 Business Studies

Topic No 3: Types of Planning

1. Which of the following plan is developed for a one-time event and is not likely to be repeated in future?

(a) Standing plan

(b) Single-use plan

(c) Strategic plan

(d) None of the above

Answer: Single-use plan.

2. Which of the following is not a characteristic of standing plan?

(a) They are used once

(b) They provide guidance for recurring actions

(c) They are standing guide to recurring problems

(d) Both b and c

Answer:They are used once.

3. Standing plan includes:-

(a) Policies

(b) Budget

(c) Programme

(d) Project

Answer: Policies.

4. Which of the following plans have broader scope?

(a) Single-use plans

(b) Standing plans

(c) Both a and b

(d) None of the above

Answer: Standing plans.

5. The budget for the Annual General meeting of a company is an example of:-

(a) Single-use plans

(b) Standing plans

(c) Neither Standing nor Single used plans

(d) Both a and b

Answer:Single-use plans.

6. _____ are the ends which the management seeks to achieve by its operational activities.

(a) Objectives

(b) Rule

(c) Method

(d) Procedure

Answer: Objectives.

7. Which of the following usually set up objectives for the organization?

(a) Top-level management

(b) Lower-level management

(c) Non managerial members

(d) Both b and c

Answer:Top-level management.

8. Which of the following should not be a feature of ‘Objectives’?

(a) Objectives should be measurable

(b) Objectives should be achievable

(c) Objectives should be clear

(d) Objectives should be complex

Answer:Objectives should be complex.

9. Which of the following is the dimension of the comprehensive plan used for accomplishing an organization objectives?

(a) Determination of long term objectives

(b) Adopting a particular alternative

(c) Allocating necessary resources

(d) All of the above

Answer: All of the above.

10. Which of the following business environments can affect an organization’s strategy?

(a) Social environment

(b) Legal environment

(c) Economic environment

(d) All of the above

Answer: All of the above.

11. Which of the following strategies is concerned with the demand of the product?

(a) Marketing strategy

(b) Productionstrategy

(c) Expansions strategy

(d) Cost-Managementstrategy

Answer:Marketing strategy.

12. Which of the following is a comprehensive plan made to accomplish the objectives of an organization?

(a) Rule

(b) Method

(c) Procedure

(d) Strategy

Answer: Strategy.

13. ______ are the general statements that guide thinking towards a particular direction.

(a) Policy

(b) Method

(c) Objectives

(d) Budget

Answer: Policy.

14. The policy framework is made for _____ level of management in an organization.

(a) Top-level management

(b) Middle-level management

(c) Lower-level management

(d) All of the above

Answer: All of the above.

15. The criteria for choosing suppliers may be addressed in ______ policy.

(a) Sales

(b) Purchase

(c) Trade

(d) Financial

Answer: Purchase.

16. _____ are those plans which determine the routine steps on how to carry out activities.

(a) Objectives

(b) Strategy

(c) Policy

(d) Procedure

Answer: Procedure.

17. _____ deals with a task that contains a step of procedure and specifies the way of doing it.

(a) Programme

(b) Budget

(c) Rule

(d) Method

Answer: Method.

18. Which of the following does not allow for any flexibility or discretion in decision making?

(a) Rule

(b) Programme

(c) Method

(d) Policy

Answer: Rule.

19. Rule tells us that :-

(a) What is to be done

(b) What is not to be done

(c) Why it is to be done

(d) Both a and b

Answer: Both a and b.

20. Programmes are detailed statements about the organizational activities which outlines the ______.

(a) Policies

(b) Objectives

(c) Rules

(d) All of the above

Answer: All of the above.

21. ______ provides details about estimated resources like money, material, time and other useful resources for the achievement of various objectives of an organization.

(a) Rule

(b) Method

(c) Policy

(d) Budget

Answer: Budget.

22. Which of the following is the simplest type of plans?

(a) Programme

(b) Procedure

(c) Strategy

(d) Rule

Answer: Rule.

23. Method deals with the task that contains a step of the following type of plans:-

(a) Procedure

(b) Budget

(c) Programme

(d) Objectives

Answer: Procedure.

24. The quantitative details of expected results is called as ______.

(a) Budget

(b) Procedure

(c) Objectives

(d) Rule

Answer: Budget.

25. ‘Do not work without mask’ what element of planning does this line exemplify?

(a) Method

(b) Rule

(c) Budget

(d) Procedure

Answer: Rule.

26. The following type of plans is the main focus of planning:-

(a) Rule

(b) Method

(c) Policy

(d) Objective

Answer: Objective.

27. Which one of the following is not the characteristic of rules?

(a) Rules are not flexible

(b) Punishment shall be allotted for violation of rules

(c) It is voluntary to follow rules

(d) Rules are simplest type of plans

Answer:It is voluntary to follow rules.

28. Which of the following is not an example of objectives?

(a) Raising employment by 10% annually

(b) Increasing sales by 10 crore

(c) Growth in PAT by 20% in the next year

(d) Smoking is prohibited

Answer: Smoking is prohibited.

29. ______ may be awarded for not following organizational rules.

(a) Reward

(b) Punishment

(c) Praises

(d) Allowance

Answer: Punishment.

30. Budget and programme falls under the following types of plans:-

(a) Standing plans

(b) Single-use plans

(c) Neither standing nor single-use plans

(d) Both a and b

Answer: Single-use plans.

Related Articles:

Class 12 Business Studies MCQs with Answers (All Chapters)

Class 12 Nature and Significance of Management MCQs

Class 12 Principles of Management MCQs

Class 12 Business Environment MCQs

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