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CBSE Questions for Class 12 Commerce Business Studies Planning Quiz 9 - MCQExams.com
CBSE
Class 12 Commerce Business Studies
Planning
Quiz 9
What are the problems commonly hindering successful planning?
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Lack of planning expertise, little
support from
top management, misuse of planning specialists.
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Poor cooperation between managers and planners and too many planners.
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No structured planning and taking impossible measures to get outcomes.
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Too many assumptions, negative organizational culture; poor interpersonal relationships.
Which of these statements is true?
A good objectives should clarify the desired result
Enable achievement to be measured and
Need not specify a time scale
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$$1&2$$
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$$2$$
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$$1$$
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$$3$$
A ______ plan is a one-time plan designed to meet the needs of a unique situation and created in response to non-programmed decision that managers make.
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directional
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standing
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strategic
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single-use
The definition of planning which suits the most is ________.
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setting an organization's objectives and the means of reaching them
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giving employees skills and knowledge
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an integrated process in which plans are formulated, carried out and controlled
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to find the core activity of planners and planning departments.
Planning is _________.
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forecasting the future of an enterprise
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deciding the course of action
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both a & b
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making provision for the plan
Contingency factors in planning include ________.
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intuition and creativity
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tomorrow's survival
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persistence
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a degree of environmental uncertainty
Which of the following is a part of the definition of organizational planning?
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Evaluating the organization's outcomes
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Higher profits
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Contingency factors
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Defining goals
An approach of setting objectives from managers to downwards in the organization is ________.
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true planning
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commitment concept
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checking the outcomes of the manager
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traditional goal setting
Strategic Planning ___________.
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addresses the organization's basic mission or business issuing broad statements of purpose or direction that have a long lead time
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involves managers in each unit of an organization who are responsible for achieving the unit's objectives within a specified period of time
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looks specifically at resources, finances, and market condition to determine ways to accomplish the overall plans of the organization
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determines the day-to-day operations within an organization
One of the basic functions of management is _________.
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control
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organising
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planning
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motivation
Planning is dynamic because __________.
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it is a process which is continually reported
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plans have to be prepared keeping changing environment in mind
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both a & b
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it is dynamic and beautiful process.
What is the primary purpose of budgeting?
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Planning
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Control
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Organizing
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Direction
Explanation
Budgets are plans and budgetary control are the comparisons of plans with the actual performance.
Control is provided by comparisons of actual result against budget plan.
Once a company has made long range plans and the planning process is complete, the future requirement of planning is ___________.
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not required
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required sometimes
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dynamic
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none of the above
Which one of the following strategy deals with day-to-day activities of a business?
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Corporate strategy
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Operational strategy
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Business unit strategy
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None of the above
Explanation
Corporate Strategy- is concerned with the selection of business in which company should complete. It is a crucial level since it is a deciding factor for investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a 'mission statement".
Hence, option B is correct.
By pervasive nature of planning we mean __________.
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it is required at all levels in an organisation
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planning is a top management tool
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planning is a continuously changing
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it is a basic management function
Explanation
Planning is pervasive:
Planning is required at all levels of management as well as in all departments of the organisation. It is not an exclusive function of top management nor of any particular department. But the scope of planning differs at different levels and among different departments
The best description of zero base budgeting is _________.
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zero base budgeting starts from a zero base and every function within an organization is analyzed for its needs and cost.
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zero base budgeting starts with the figures of the previous period and assumes a zero rate of change.
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zero base budgeting is a technique where cash flow budgets and operating plans are made for the organization
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zero base budgeting is a short term planning technique targeted at zero profit or loss..
The danger in the formalization of strategic planning is ________.
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that it does not facilitate the most efficient allocation of resources
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that it often does not take sufficiently into account cultural and political dimensions in the development of strategy.
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both a and b.
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none of the above.
The purpose of strategic planning systems is ________.
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to assist in the communication, co-ordination and control of strategy.
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develop ownership of the strategy.
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to provide a structured means of analyzing and thinking about complex strategic problems and expanding the planning horizons of strategists.
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all of the above.
The first step in planning is _________.
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setting objectives of the organisation
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to improve effectiveness of all other function of management
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to force events to confirm to plan
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none of the above
Explanation
Planning is deciding in advance what to do and how to do. It is a process of decision making. Process of planning includes the following steps:
Setting Objectives
Developing Premises
Identifying alternative courses of action
Selecting an alternative
Evaluating alternative courses
Selecting an alternative
Implement the plan
Follow-up action
Setting objectives is the primary step in planning. Objectives or goals specify what the organisation wants to achieve.
Which level of management is responsible for strategic planning in an organisation?
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Lower level management
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Middle level management
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Top level management
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All of the above
Explanation
Strategy is the direction and scope of an organization over the long term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations. Since it involves various aspects of planning it is done by top-level managers of organisation.
Hence, option C is correct.
We can say that the strategic implications of global warming is _________.
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an external environmental analysis
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scenario planning
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future forecasting
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a PESTLE analysis
Which of the following type of budget is prepared to assess the level of inventories, receivables etc.?
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Material budget
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Profitability budget
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Cash budget
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Working capital budget
Explanation
Working Capital budget
is a part of the total budgeting process of a business. It is prepared by estimating the future long-term and working capital needs for example current assets like inventory, debtors, receivables, etc.
Which of the following is not a part of Porter's generic strategy?
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Focus
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Cost leadership
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Differential strategy
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Market segmentation
Explanation
The three strategies of porter are
(A) Cost leadership
(B) Differentiation
(C) Focus
The ________ plan describes how the product will be distributed and priced.
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financial
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production
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venture
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marketing
The purpose of business plan is that it _________.
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helps determine the viability of your enterprise
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helps you obtain financing
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guides you as you plan and organize
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all of these
Explanation
The purpose of a business plan is that helps identify, describe and analyze a business opportunity and/or a business already underway.
It examines its technical, economic and financial feasibility.
It helps you obtain finance.
Hence d is the correct answer.
Which of the following strategy focuses on issues of production processes, material, etc.?
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Operation strategy
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Business unit strategy
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Corporate strategy
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Marketing strategy
Explanation
An operation strategy for a business is the company's plan for how the business will operate to achieve a set of goals. It includes strategy and decisions related to the operations of the business.
Hence, option A is correct.
Planning is helpful as it _________.
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reduces the chaos of running an organization
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introduces nationally in the decision making process of management
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both a & b
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none of the above
Invariably planning is important as ___________.
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it is one of the objectives of a manager
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it keeps the check on the performance against the predetermined course of action
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it is the only source of information for employees
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both a & b
Planning means _________.
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prediction about future
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assumptions about future
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neither a nor b
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both a & b
Which of the following is not the limitation of planning?
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Policies and rules which are once established are difficult to change
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It is pervasive function
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Rules and regulations of government
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Both a & c
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