Short Answer Questions | Business Studies (BST) Class 12 - Commerce PDF Download

Q1: “Planning leads to rigidity” is a
(a) Feature of Planning
(b) Process of planning
(c) Limitation of Planning
(d)Importance of Planning
Ans: (c)
Since planning is done in a predetermined manner, little scope is left for the manages and workers to use their ability and experiences, resulting in rigidity in planning.

Q2: What to do and how to do is concerned with______
(a) Controlling
(b) Organising
(c) Directing
(d) Planning
Ans: (d)
Planning involves setting objectives and developing course of action for future. It is deciding in advance as to what to do and how to do.

Q3: Selection of employees is _____________ of the business
(a) Rule
(b) Strategy
(c) Procedure
(d) None of these
Ans: (c)
Procedure involves to establish required sequence of steps in advance to handle the future problems. e.g. procedure of selection of employees, procedure for admission in a school.

Q4: The first step of planning is_______
(a) Implementing the plan
(b) Follow up action
(c) Selecting an alternative
(d) Setting objectives
Ans: (d)
Objectives are the ends towards which all the activities are directed. Thus planning begins with objectives because all the policies, strategies, procedures etc. are formed to achieve objectives only. Therefore the first step of planning is setting up the objectives.

Q5: ‘Planning eliminates changes/uncertainties’. Do you agree? Give reason in support of your answer.
Ans: No, I do not agree because planning only tries to foresee the future by making some assumptions. It does not eliminate changes/ uncertainties.

Q6: How does planning create rigidity?
Ans: Since plans are formed by top level of managers and rest of the organisation is neither allowed to deviate from those plans nor to invent any new alternatives. It results in rigidity in operations.

Q7: It helps the manager to look into future and make a choice amongst various alternative courses of action. Enumerate the importance of planning indicated here
Ans: Planning facilitates decision-making. Because plans decide the future course of actions. The objectives and goals are set before hand. These facilitate the managers to take quick decisions.

Q8: Name the type of plan which is time-bound and linked with a measurable outcome.
Ans: Both objectives and budget are time bound and linked with measurable outcomes.

Q9: “Planning is Pervasive”. Explain briefly.
Ans: Planning is the pervasive function of the management. It is required in all the types of organisation, whether big or small, business or non-business, social, political or religious. It is needed in all the departments of the organisation. Planning is performed even at all levels of management at the top, middle and lower level. As top level managers plan to make objectives and policies for the organisation. Middle-level managers plan to implement policies and rules among their departments. Lower level managers plan to control, inspect and supervise workers in the factory. In this way, planning is all pervasive.

Q10: How is planning forward looking?
Ans: Planning is forward-looking because it essentially involves looking ahead and preparing for the future. The purpose of planning is to meet future events effectively to the best possible advantage of the organisation. It is always for the future and never for the past. It involves peeping into the future, analysing and then preparing plans accordingly. For e.g. on the basis of the sales forecasts, annual plans for production are drawn.