Test: Planning- Assertion-Reason & Case Base Type Questions - Commerce MCQ

Assertion (A): Planning is a time-saving process.

Reason (R): The success of an enterprise is possible only when plans are properly drawn up and implemented.

Both statements are true, but the reason does not correctly explain the assertion. Here’s why:

• Planning as Time-Saving: While planning aims to save time by providing a clear direction, it can also be time-consuming.
• Success of Enterprise: Success relies on effective implementation of plans, not solely on the planning process itself.
• Connection: The reason highlights the importance of planning but does not clarify how it saves time.

Therefore, the correct choice is that both (A) and (R) are true, but (R) is not the correct explanation of (A).

Planning is required at all levels of management.

It is not limited to top-level managers; rather, it involves:

• Top-level managers create major plans and overall policies for the organisation.
• Middle-level managers focus on departmental planning.
• Lower-level managers handle day-to-day operational planning to support overall objectives.

This structure ensures that planning is pervasive across all management levels and departments.

Monitoring plans is essential to ensure they are implemented on schedule.

Regular checks and comparisons with set standards help achieve objectives. Here are key points regarding the importance of monitoring:

• Ensures implementation: Monitoring confirms that plans are being followed as intended.
• Facilitates adjustments: It allows for timely corrections if deviations from the plan occur.
• Supports goal achievement: By comparing actual results with objectives, managers can assess success.

Thus, while both statements are true, the reason provided does not fully explain the assertion, making option B the correct choice.

Planning is a primary function of management.

Planning serves as the foundation for all other management functions. Here are key points to understand its significance:

• Foundation for Management: Planning establishes the framework within which all managerial activities occur.
• Interrelation of Functions: While all management functions are important, planning is essential as it precedes and guides them.
• Pervasive Requirement: Planning is necessary at every level of management and across all departments, not just for top management.
• Varied Scope: The scope of planning varies; top management focuses on overall organisational planning, while middle management handles departmental plans.

In summary, planning is crucial as it not only directs actions but also reduces uncertainty and promotes effective decision-making within an organisation.

Planning is futuristic.

Planning involves looking ahead and preparing for the future. Its main goals include:

• Meeting future events effectively to benefit the organisation.
• Analysing potential future scenarios.
• Forecasting future conditions to create appropriate plans.

For example, businesses often rely on sales forecasting to develop their annual production and sales plans. This forward-looking approach allows organisations to anticipate changes and adapt their strategies accordingly.

The correct answer is: b) (A) is false, but (R) is true

Explanation:

• Assertion (A): Developing Planning Premises is the primary step – Incorrect

  • The primary (first) step in planning is setting objectives, not developing premises.

• Reason (R): Objectives are end results which the management wants to achieve by its operations –  Correct

  • This is the correct definition of objectives.

So, the assertion is false, but the reason is true

Planning is concerned with the future which is uncertain.

Planning involves making predictions about what may happen in the future. Here are key points regarding this process:

• Assumptions: Managers must make certain assumptions about future events. These assumptions are often referred to as premises.
• Uncertainty: The future is inherently uncertain, making planning essential for anticipating potential changes.
• Guidance: Effective planning provides direction and helps organisations prepare for various scenarios.

In summary, planning is a crucial activity that helps managers navigate uncertainties by making informed assumptions about the future.

Planning in management involves deciding on the steps needed to achieve goals. It includes anticipating changes and challenges, as well as optimising the use of human resources and opportunities. Here are the key aspects of planning:

• Goal Setting: Planning focuses on establishing clear objectives to guide actions.
• Anticipation: It prepares managers to foresee potential changes and challenges.
• Resource Allocation: Effective planning ensures optimal use of resources to minimise waste.
• Coordination: It helps align the efforts of different departments and individuals.
• Decision Making: Planning aids in evaluating alternatives and making informed choices.

Overall, planning is a crucial function of management that lays the groundwork for achieving organisational goals.

In the simplest terms, business development can be summarised as the ideas, initiatives, and activities that help improve a business. This includes:

• Increasing revenues through various strategies.
• Expanding business operations and market reach.
• Enhancing profitability by forming strategic partnerships.
• Making informed business decisions to drive growth.

Overall, the objective mentioned is focused on growth and development within the company.

Sudden Changes:

The management process has a significant limitation when it comes to handling unexpected changes. Here are the key points:

• Resistance to Change: Employees often become accustomed to established methods and may resist new approaches.
• Failure of New Plans: This resistance can lead to the failure of new initiatives, as employees doubt their success.
• Preference for Existing Plans: Many employees believe that current plans are superior to proposed changes, hindering adaptability.

In summary, the inability to adapt to sudden changes can undermine the effectiveness of management planning.

Planning essentially involves looking ahead and preparing for the future. The purpose of planning is to effectively meet future events to benefit an organisation. It involves:

• Anticipating future events: Planning requires analysing potential scenarios and predicting outcomes.
• Creating a framework: It provides a structured approach for achieving organisational goals.
• Informed decision-making: Planning involves choosing from various alternatives and evaluating each option carefully.

Through methods like sales forecasting, businesses can prepare their annual plans for production and sales. This forward-looking function is crucial for success, as it helps organisations navigate uncertainties and adapt to changing conditions.

Planning is a mental exercise:

Planning involves using the mind to engage in foresight, intelligent imagination, and sound judgement. It is primarily an intellectual activity focused on thinking rather than executing tasks. Here are some key points about planning:

• Intellectual Activity: It determines the actions that need to be taken.
• Logical Thinking: Effective planning requires logical and systematic thought processes, rather than mere guesswork.
• Future Orientation: Planning is about preparing for future events based on careful analysis of facts and forecasts.
• Decision Making: It involves making choices from various alternatives to achieve specific objectives.

In summary, planning is essential for guiding actions and ensuring that objectives are met effectively.

Specific goals are set out in the plans along with the activities needed to achieve them. This demonstrates that planning is purposeful and essential for reaching predetermined organisational goals.

• Planning focuses on achieving objectives: Organisations are established with specific purposes in mind.
• Planning is a primary function of management: It lays the groundwork for all other management activities.
• Planning is continuous: It requires ongoing assessment and adjustment to remain effective.

In summary, planning is vital as it:

• Sets clear objectives to guide actions.
• Ensures that all efforts contribute to the overall goals.
• Involves a systematic approach to decision-making.

Planning essentially involves choice from among various alternatives and activities.

It requires a thorough examination of each option to select the most suitable one. Here are the key aspects of planning:

• Decision-making: Planning involves making choices between different alternatives.
• Evaluation: Each alternative must be carefully assessed to determine its feasibility and potential outcomes.
• Thorough examination: A detailed analysis of facts is necessary to ensure informed decisions.

In summary, planning is a critical process that helps organisations navigate their future by evaluating options and making informed decisions.

Answer: A) Both Assertion and Reason are true, and Reason is the correct explanation for Assertion.

Explanation:
Planning indeed forms the foundation of management by outlining the organization's goals and defining the steps to achieve them, which is why it is considered the first and most important management function. The Reason explains that planning involves specific tasks such as setting objectives and identifying resources, which aligns with the Assertion