Students of class 12 Business Studies should refer to MCQ Questions Class 12 Business Studies Planning with answers provided here which is an important chapter in Class 12 Business Studies NCERT textbook. These MCQ for Class 12 Business Studies with Answers have been prepared based on the latest CBSE and NCERT syllabus and examination guidelines for Class 12 Business Studies. The following MCQs can help you to practice and get better marks in the upcoming class 12 Business Studies examination

Chapter 4 Planning MCQ with Answers Class 12 Business Studies

MCQ Questions Class 12 Business Studies Planning provided below have been prepared by expert teachers of grade 12. These objective questions with solutions are expected to come in the upcoming Standard 12 examinations. Learn the below provided MCQ questions to get better marks in examinations.

Question. Which of the following statements is not true with reference to planning?
(a) Planning is a pre-requisite for controlling.
(b) Planning does not lead to rigidity.
(c) Planning enables a manager to look ahead and anticipate changes.
(d) Planning facilitates co-ordination among departments and individuals in the organisation.

Question. Indian Drugs and Pharmaceuticals Ltd.’ is engaged in the manufacturing and distribution of medicines. The company has set-up an objective of increasing its sales turnover by 20%. To achieve this objective the company has decided to diversify into baby health care products. Accordingly, the company has identified various alternative courses of actions for the diversification process. They divided this process by determining the positives and the negatives and selected the ideal plan which is the most feasible and profitable. Which steps of planning have been followed in the above case:
(a) Identifying alternatives
(b) Following up action
(c) Selecting an alternative
(d) Both (a) and (c)

Question. Identify the correct sequence of steps involved in the planning process.
(a) Evaluating alternative courses, Identifying alternative course of actions, Setting objectives, Developing premises
(b) Setting objectives, Identifying alternative course of actions, Evaluating alternative courses, Developing premises
(c) Setting objectives, Developing premises, Identifying alternative course of actions, Evaluating alternative courses
(d) Setting objectives, Developing premises, Identifying alternative course of actions, Evaluating alternative courses

Question. ABC Ltd. is a reputed company. They had devoted a lot of time and money to its plan. The limitation of planning mentioned here is___________
(a) Planning may not guarantee success 
(b) Planning may not work in a dynamic environment
(c) Planning involves huge cost
(d) Planning is a time-consuming process

Question. Which of the following is a benefit of planning?
(a) Helps in avoiding confusion and misunderstanding.
(b) Ensures clarity in thought and action.
(c) Useless and redundant activities are minimised or eliminated.
(d) All of the above.

Question. All other managerial functions are performed within the framework of the plans drawn. Identify the related feature of planning.
(a) Planning focuses on achieving objectives.
(b) Planning is pervasive.
(c) Planning is futuristic.
(d) Planning is primary function of management.

Question. Planning requires logical and systematic thinking rather than guess work or wishful thinking. The feature of planning given here is___________
(a) Planning is futuristic.
(b) Planning is a mental exercise.
(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objectives.

Question. It is not always true that just because a plan has worked before it will work again. Identify the related limitation of planning.
(a) Planning leads to rigidity.
(b) Planning reduces creativity.
(c) Planning may not work in a dynamic environment.
(d) Planning does not guarantee success.

Question. A strategy is a comprehensive plan which will not include this dimension:
(a) Determining long term objectives
(b) Adopting a particular course of action
(c) The ends which the management seeks to achieve by its operations
(d) Allocating resources necessary to achieve the objective

Question. To see whether plans are being implemented and activities are being performed according to schedule, is a step of planning process. Identify the step.
(a) Choosing an alternative
(b) Implement the plan
(c) Identifying alternatives
(d) Follow-up action

Question. Planning requires logical and systematic thinking rather than guess work or wishful thinking. Identify the related feature of planning.
(a) Planning is futuristic.
(b) Planning is a mental exercise.
(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objectives.

Question. A plan is framed, implemented and followed by another plan and so on. Which feature of planning is highlighted in the above case?
(a) Planning focuses on achieving objectives
(b) Planning is a continuous process
(c) Planning is the primary function of management
(d) Planning is pervasive

Question. Prateek has given a detailed statement of expected results in numerical terms. This plan is conveyed to the subordinates by him in a special meeting. State the type of plan mentioned here.
(a) Objective
(b) Rule
(c) Budget
(d) Method

Question. What is known as the primary function of management?
(a) Controlling
(b) Organising
(c) Planning
(d) Staffing

Question. The function of management decides what to do and how to do:
(a) Organizing
(b) Planning
(c) Directing
(d) Controlling

Question. The manager Mr. Rehman strictly adheres to the plan that lays down maximum of 10% discount to be offered to customer on salt of goods. But Mr. Rehman could not provide a 10.5% discount on a large order to an old customer Mr. ‘Ram when he demanded a discount. The firm lost the large order and hence incurred losses. Which limitation of planning is reflected here ? How can this limitation be overcome?
(a) Planning is rigid
(b) Planning does not work in dynamic environment
(c) Planning reduces creativity
(d) Planning involves huge cost.

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

Question. Name the function of management which involves setting objectives and developing appropriate courses of action to achieve these objectives.
(a) Directing
(b) Organising
(c) Planning
(d) Staffing

Question. Sales forecasting is the basis on which a business firm prepares its annual plan for production and sales which features of planning is highlighted in the above case?
(a) Planning focuses on achieving objectives
(b) Planning is continuous
(c) Planning is the primary function of management
(d) Planning is futuristic

Question. Planning cannot foresee everything in future, and thus, there may be obstacles to effective planning. Identify the limitation of planning.
(a) Planning leads to rigidity.
(b) Planning may not work in a dynamic environment.
(c) Planning does not guarantee success.
(d) Planning reduces creativity.

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

Question. Which of the following is not the benefit of planning?
(a) Planning reduces overlapping and wasteful activities.
(b) Planning is a mental exercise.
(c) Planning provides directions.
(d) Planning reduces the risks of uncertainty.

Question. Amit is a CEO of the bookmybus.com. here planning is mainly done by top management. He did not involve middle level and operational level in the strategy and policies formulation and even they can’t act on their own. The limitation of planning mentioned here is_____
(a) Planning may not guarantee success
(b) Planning may not work in a dynamic environment
(c) Planning involves huge cost
(d) Planning reduces creativity

Question. ABC Ltd. is a reputed company. They had devoted a lot of time and money to its plan. Identify the limitation of planning mentioned here.
(a) Planning may not guarantee success
(b) Planning may not work in a dynamic environment
(c) Planning involves huge cost
(d) Planning is a time-consuming process

Question. Planning is actually worth the huge costs involved. Do you agree?
(a) Yes
(b) No
(c) Maybe
(d) Not sure

Question. Planning requires logical and systematic thinking rather than queswork or wishful thinking which features of planning is highlighted in the above case?
(a) Planning focuses on achieving objectives
(b) Planning is a mental exercise
(c) Planning is the primary function of management
(d) Planning is pervasive

Question. Name the process of setting objectives, formulating various courses of action in order to achieve them, and selecting the best possible alternative from the various courses of action available in order to ensure completion of organisational goals.
(a) Planning
(b) Dirction
(c) Coordination
(d) Staffing

Question. Adarsh wants to start a business of opening a fast food chain Arti his friend, told him to perform planning as a function of management, as it precedes all functions of management, i.e., organising, staffing, directing, and controlling. Identify the feature of planning referred to here.
(a) Planning is a primary function
(b) Planning is pervasive
(c) Planning is continuous
(d) Planning is futuristic

Question. Which of the following is not a feature of planning?
(a) Planning is futuristic.
(b) Planning is pervasive.
(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objectives.

Question. Which of the following is an assumption of rationality to rationale decision making?
(a) Preferences are clear
(b) Final choice will maximise payoff
(c) The problem is clear and unambiguous
(d) All of the above

Question. “Planning is required in all types of organisations and at all levels of management.” Identify the statement and choose the correct answer.
(a) Planning is futuristic
(b) Planning is pervasive
(c) Planning is a mental process
(d) Planning focuses on achieving objectives

Question. “It is difficult for an organisation to access future trends, taste of customers, natural calamity, competitors’ policies, and effects of changes in the different components of environment.” Identify the statement and choose the correct answer.
(a) Planning may not work in dynamic environment
(b) Planning reduces creativity
(c) Planning involves huge cost
(d) Planning is a time consuming process

Question. Name the type of plan which provides the broad contours of an organisation’s business.
(a) Programme
(b) Strategy
(c) Rule
(d) Policy

Question. It is the thinking process, the organised foresight, the vision based on fact and experience that is required for intelligent action. Identify the function of management.
(a) Planning
(b) Organizing
(c) Controlling
(d) Directing

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. to see whether plans are being implemented and activities are being performed according to the schedule, is a step of planning process. Identify the step.
(a) Implement the plan
(b) Choosing an alternative
(c) Identifying alternatives
(d) Follow up action

Question. Zantar Ltd., made its annual plan for the following year on the assumption that the sales of the product A, will rise in near future. However, that same year a major technological development occurred in the production of the Product a and new competitors entered the market using that technology. These two incidences led to entry of low-priced and good quality products of Product A into the market. Which function of management is considered above? Should Zantar Ltd., continue with the same plan? Which limitation of management function is reflected in the aforementioned case study?
(a) Planning is rigid
(b) Planning does not work in dynamic environment
(c) Planning redue creation
(d) Planning involves huge cost

Question. Who among the following was the first chairman of Tripura State Planning Board
(a) Sri Manik Sarkar
(b) Sri Sudhir Majumder
(c) Sri Nripen Chakraborty
(d) Sri Biplab Kumar Deb

Question. For internal financing of Five year plans the Government depends on :
(a) Taxation only.
(b) Taxation and public borrowing
(c) public borrowing and deficit financing
(d) Taxation,public borrowing and deficit financing

Question. Economic planning is in :
(a) Union list
(b) state list
(c) concurrent list
(d) not any specified list
(e) none of the above

Question. The supervision, direction and control of the Panchayati Raj Institution was in the hands of
(a) State Finance Commission
(b) State Election Commission
(c) Central Election Commission
(d) None of the above.

Question. When economic development takes place
(a) Population increases
(b) Capital stock increases
(c) Market imperfections increase
(d) 1 & 2 of the above

Question. Which of the following is not a feature of India planning :
(a) physical planning
(b) indicative economic planning
(c) decentralised planning
(d) none of the above

Question. The Gandhian plan was presented by :
(a) M.N. Roy
(b) Nehru
(c) Sriman Narayan 
(d) none of these

Question. How many seats are reserved in Panchayats for women members?
(a) Two third
(b) One third
(c) Half
(d) None of these.

Question. “Planning is required in all types of organisations and at all levels of management.” Identify the statement and choose the correct answer.
(a) Planning is futuristic
(b) Planning is pervasive
(c) Planning is a mental process
(d) Planning focuses on achieving objectives

Question. The top management of Phospher Ltd., is engaged in organisation planning but they do not involve middle and supervisory level of management. These two levels of management are neither allowed to deviate from their plans nor are they permitted to act on their own. They keep thinking along the same lines as others so that nothing new or innovative gets added to the process. Which limitation of planning is reflected in above case? What remedial steps will Phospher Ltd. take to overcome this limitation?
(a) Planning is rigid
(b) Planning reduce creating
(c) Planning does not work in dynamic environment
(d) Planning involves huge cost

Question. Which limitation of planning suggests that the employees stop thinking and become the blind followers of the plan?
(a) Planning reduces creativity
(b) Planning does not work in dynamic environment
(c) Planning does not guarantee success
(d) Planning involves huge costs

Question. Santo Ltd., has to develop its organisational plan for the current year and for this purpose they hired professional consultants from United States. These consultants incurred a lot of money in collection of facts, figures, surveys, etc. including the salaries of the consultants. This whole process of planning has already proved to be a very costly affair and the eventual total cost may exceed the gains expected from the plan. Should Santo Ltd. continue with existing planning ? Explain with reasons. Also explain, which limitation of planning is reflected in this case?
(a) Planning is rigid
(b) Planning reduces creativity
(c) Planning does not work in dynamic environment
(d) Planning involves huge cost

Question. A plan is framed, it is implemented and followed by another plan and so on. Which feature of planning is highlighted in the above case?
(a) Planning focuses on achieving objectives
(b) Planning is continuous
(c) Planning is the primary function of management
(d) Planning is pervasive

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 requires logical and systematic thinking rather than genuine work. Which feature of planning is highlighted here?
(a) Pervasive
(b) Futuristic
(c) Psychological activity
(d) Continuous

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

Question. Which limitation of planning suggests that the employees stop thinking and become the blind followers of the plan?
(a) Planning reduces creativity
(b) Planning does not work in dynamic nature
(c) Planning does not guarantee success
(d) Planning involves huge costs

Question. Planning involves setting targets and predicting future conditions, thus helping in making a choice. Which importance of planning is highlighted in the above statement?
(a) Planning provides direction
(b) Planning recues overlapping and wasteful activities
(c) Planning reduces the risk of uncertainty
(d) Planning facilitates decision making

Question. “Planning provides _________________ and reduces the risk of uncertainty. Planning helps managers in many other ways.”
(a) actions
(b) directions
(c) coordination
(d) none of these

Question. Suresh is giving a speech to the workers of his factory. He is the owner of a toy manufacturing factory and has 123 workers. He tells them that this year’s target of production is 7.5 lakh toys. Which step in planning process is highlighted in the case?
(a) Implementing the plan
(b) Setting objectives
(c) Comparing alternative plans
(d) None of these

Question. __________is the process of setting objectives, formulating various courses of action in order to achieve them, and selecting the best possible alternative from the various courses of action available in order to ensure completion of organisational goals.
(a) Organising
(b) Controlling
(c) Planning
(d) Directing

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 cannot be done in the absence of _________?
(a) strategies
(b) objectives
(c) controlling
(d) policies

Question. Changes and events cannot be eliminated but they can be anticipated and managerial response to them can be developed which importance of plannign is highlighted in the above statement?
(a) Plannign provides direction
(b) Planning reduces overlapping and wasteful activities
(c) Planning reduces the risk of uncertainty
(d) Planning facilitates decision making

We hope the above multiple choice questions for Class 12 Business Studies for Chapter 4 Planning provided above with answers based on the latest syllabus and examination guidelines issued by CBSE, NCERT and KVS are really useful for you. Planning is an important chapter in Class 12 as it provides very strong understanding about this topic. Students should go through the answers provided for the MCQs after they have themselves solved the questions. All MCQs have been provided with four options for the students to solve. These questions are really useful for benefit of class 12 students. Please go through these and let us know if you have any feedback in the comments section.