This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 4 Planning – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 4 Planning Quiz 4 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Statement I:Controlling is a prerequisite for planning. Statement II:Planning provides the goals or standards against which actual performance is measured. A) Statement I is correct and Statement II is not correct. B) Both the Statements I and II are correct. C) Both the Statements I and II are not correct. D) Statement II is correct and Statement I is not correct. Show Answer Correct Answer: B) Both the Statements I and II are correct. 2. Looks at likely risks to the business A) Insurance and risk management. B) Business Profile. C) Marketing Plan. D) Financial Section. Show Answer Correct Answer: A) Insurance and risk management. 3. Statement I:Follow-up action is the real point of decision making under the planning process. Statement II:Implementing the plan is the step where other managerial functions also come into the picture. A) Both the Statements I and II are correct. B) Statement I is correct and Statement II is not correct. C) Both the Statements I and II are not correct. D) Statement II is correct and Statement I is not correct. Show Answer Correct Answer: A) Both the Statements I and II are correct. 4. What is the term for a financial plan that estimates revenue and expenses over a specified future period? A) Budget. B) Projection. C) Analysis. D) Forecast. Show Answer Correct Answer: A) Budget. 5. These are the "expertise and good things" within your business. A) Opportunities. B) Strengths. C) Weaknesses. D) Technical Feasibility. E) Threats. Show Answer Correct Answer: B) Strengths. 6. Assertion (A):Planning is futuristic. Reason (R):Planning is concerned with the future which is certain and does not require forecast. A) Both A and R are true and R is the correct explanation of A. B) Both A and R are true but R is not the correct explanation of A. C) A is true but R is false. D) A is false but R is true. Show Answer Correct Answer: A) Both A and R are true and R is the correct explanation of A. 7. Is 'gathering information' one of the steps in the decision-making process when Lucy is trying to choose a new laptop for her studies? A) It is not necessary. B) It is the only step. C) Yes, it is one of the steps. D) No, it is not a step. Show Answer Correct Answer: C) Yes, it is one of the steps. 8. How is the summary of each aspect of a business plan usually presented in an Executive Summary? A) In a graphical format. B) In bulleted format. C) In a narrative format. D) In paragraph format. Show Answer Correct Answer: B) In bulleted format. 9. Which of the following is a reason to conduct a feasibility study: A) Considering a new product idea. B) Hiring a new employee. C) Choosing an advertising slogan. D) Ordering office supplies. Show Answer Correct Answer: A) Considering a new product idea. 10. The elapsed time between placing an order and it receiving it is also known as ..... A) Lead time. B) Expected time. C) Waiting time. D) Time interval. Show Answer Correct Answer: A) Lead time. 11. What is 'business continuity planning'? A) The process of creating systems of prevention and recovery to deal with potential threats. B) The analysis of a company's financial performance. C) The development of new products. D) The expansion of a company's market share. Show Answer Correct Answer: A) The process of creating systems of prevention and recovery to deal with potential threats. 12. Which one is not the characteristics of Planning A) Object. B) Staffing. C) Rules. D) Program. Show Answer Correct Answer: B) Staffing. 13. Which of the following is not the internal element of limitation of Planning? A) Machine. B) Raw material. C) Increase in population. D) Capital. Show Answer Correct Answer: C) Increase in population. 14. Holding weekly staff meetings to check in with employees on what they have been up to and answering any questions they may have. A) Organizing. B) Controlling. C) Leading. D) Planning. E) Staffing. Show Answer Correct Answer: C) Leading. 15. Planning results in decreasing ..... A) Proper use of resource. B) Control. C) Coordination. D) Future uncertainties. Show Answer Correct Answer: D) Future uncertainties. 16. Assertion (A):Planning promotes innovative ideas. Reason (R):Since planning is the first function of management, new ideas can take the shape of concrete plans. A) Both A and R are true and R is the correct explanation of A. B) Both A and R are true but R is not the correct explanation of A. C) A is true but R is false. D) A is false but R is true. Show Answer Correct Answer: A) Both A and R are true and R is the correct explanation of A. 17. Which section of a business plan describes the target market? A) Financial Plan. B) Executive Summary. C) Appendix. D) Marketing Plan. Show Answer Correct Answer: D) Marketing Plan. 18. Punishment can be awarded for not following a particular element of planning.Name the element. A) Policy. B) Rule. C) Procedure. D) Programme. Show Answer Correct Answer: B) Rule. 19. When formal planning fails to lead to higher performance, which one of the following is most likely to be the reason for the failure? A) A participative style of planning was used. B) Managers were allowed too much autonomy. C) The company emphasized the control function over other functions. D) External forces constrain managers' options. Show Answer Correct Answer: D) External forces constrain managers' options. 20. What is the purpose of a Mission Statement in an Executive Summary? A) To clearly define what the business is about. B) To provide a detailed financial analysis. C) To list the company's products. D) To describe the company's marketing strategy. Show Answer Correct Answer: A) To clearly define what the business is about. 21. What is an organization chart? A) A written description of the nature of the business, its goals and objectives, and how they will be achieved. B) The examination of the organization's internal strengths and weaknesses. C) An illustration of the structure of an organization, major job classifications, and the reporting relationships among the organization's personnel. D) The company's reason for existing. Show Answer Correct Answer: C) An illustration of the structure of an organization, major job classifications, and the reporting relationships among the organization's personnel. 22. What does 'cash flow' refer to in business? A) The total amount of money being transferred into and out of a business. B) The company's profit margin. C) The company's revenue. D) The company's expenses. Show Answer Correct Answer: A) The total amount of money being transferred into and out of a business. 23. What is the purpose of job descriptions in an Organizational Plan? A) To outline marketing strategies. B) To define roles and responsibilities. C) To list financial goals. D) To describe products and services. Show Answer Correct Answer: B) To define roles and responsibilities. 24. Due to planning changes in business environment do not come as shock and surprise. This related to which IMPORTANCE of planning. A) Planning facilitates decision making. B) Planning provides direction. C) Planning reduces the rial of uncertainties. D) Planning promotes innovative idea. Show Answer Correct Answer: C) Planning reduces the rial of uncertainties. 25. Details about current item of inventory/stock can be found in A) Financial plan. B) Marketing plan. C) Business profile. D) Operations plan. Show Answer Correct Answer: D) Operations plan. 26. In a corporate office, employees are expected to complete their projects and tasks in accordance with the company's specific standards and expectations. A) Reporting. B) Performance. C) Standards. D) Responsibility. Show Answer Correct Answer: B) Performance. 27. The reason we export goods and services is A) Because we make them more efficiently. B) We don't make them efficiently. C) All the above. D) None of the above. Show Answer Correct Answer: A) Because we make them more efficiently. 28. Health food and exercise are examples of what type of trend? A) Lifestyle trend. B) Demographic trend. C) All the above. D) None of the above. Show Answer Correct Answer: A) Lifestyle trend. 29. Long-term plans are those with a time frame beyond three years. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 30. What is the final stage of a feasibility study? A) Recommendation and Decision. B) Project Definition. C) Risk Analysis. D) Schedule and Timeline. Show Answer Correct Answer: A) Recommendation and Decision. 31. What do we call the quantitative details of expected results? A) Procedure. B) Programme. C) Rule. D) Budget. Show Answer Correct Answer: D) Budget. 32. Planning is ..... A) Flexible. B) Stable. C) Rigid. D) None of these. Show Answer Correct Answer: A) Flexible. 33. Which step in the planning process involves fostering creativity and exploring various paths? A) Situational Analysis. B) Generating Alternatives. C) Evaluating Options. D) Goal Setting. Show Answer Correct Answer: B) Generating Alternatives. 34. Robert Downs, owner of a new community newspaper in his home town of Corning, New York, has set the following goal for his company: "To be a champion for free speech and for the development of the community." This goal constitutes the ..... goal of the company. A) Financial. B) Operational. C) Strategic. D) Informal. Show Answer Correct Answer: C) Strategic. 35. Managers of a family-run restaurant sit down together to brainstorm what they want in their new employee handbook. A) Leading. B) Controlling. C) Planning. D) Staffing. E) Organizing. Show Answer Correct Answer: C) Planning. 36. Why is planning important for a successful project launch? A) Improves resource utilization. B) Gives direction and helps focus on goals. C) All of them. D) Provides commitment and drive. Show Answer Correct Answer: C) All of them. 37. Assertion (A):Goals of a company are set keeping in mind the physical and financial resources available. Reason (R):Goals should not be rime-specific. A) Both A and R are true and R is the correct explanation of A. B) Both A and R are true but R is not the correct explanation of A. C) A is true but R is false. D) A is false but R is true. Show Answer Correct Answer: A) Both A and R are true and R is the correct explanation of A. 38. Assertion (A):Deciding what to do, how to do it, and when to do is Planning. Reason (R):Planning bridges the gap between where we are standing today and where we want to reach. A) Both A and R are true and R is the correct explanation of A. B) Both A and R are true but R is not the correct explanation of A. C) A is true but R is false. D) A is false but R is true. Show Answer Correct Answer: A) Both A and R are true and R is the correct explanation of A. 39. Sharam daan an NGO has planned to conduct a concert for raising funds but due to covid-19 situation it's plan failed which limitation of planning does it show A) Planning planning reduces creativity. B) Planning may not work in dynamic environment. C) Planning is costly. D) Planning is rigid. Show Answer Correct Answer: B) Planning may not work in dynamic environment. 40. A business plan is used to A) To think through your business ideas. B) To find investors in your business. C) To do market research. D) To develop a marketing strategy. Show Answer Correct Answer: B) To find investors in your business. 41. An enterprise is a group of people with ..... A) Multiple goals. B) Common goal. C) Separate goal for each department. D) Two or more goals. Show Answer Correct Answer: B) Common goal. 42. Roman Merchants were known for? A) Making Silk. B) Building Lighthouses. C) Spreading Art. D) Ship Building. Show Answer Correct Answer: B) Building Lighthouses. 43. An assessment or evaluation of the practicality of a proposed plan or idea. A) Conceptualizing. B) Feasibility. C) Operating. D) Organizing. Show Answer Correct Answer: B) Feasibility. 44. Statement I:Procedures are routine steps on how to carry out activities; They detail the exact manner in which any work is to be performed. Statement II:Procedures are steps to be carried out within a broad policy framework. A) Statement II is correct and Statement I is not correct. B) Both the Statements I and II are correct. C) Statement I is correct and Statement II is not correct. D) Both the Statements I and II are not correct. Show Answer Correct Answer: B) Both the Statements I and II are correct. 45. An organized inquiry into the possible success of an idea or venture A) Start-up costs. B) Bias. C) Operating expenses. D) Feasibility study. Show Answer Correct Answer: D) Feasibility study. 46. Coming up with strategies to increase sales during the holiday season. A) Leading. B) Staffing. C) Planning. D) Organizing. E) Controlling. Show Answer Correct Answer: C) Planning. 47. Accurate sales forecasts will help operations managers to achieve all of the following except: A) Keep stock levels to a minimum. B) Educe wastage of production. C) Maximise output. D) Match output closely to demand levels. Show Answer Correct Answer: C) Maximise output. 48. Statement I:Planning has no meaning unless it contributes to the achievement of predetermined organisational goals. Statement II:The other functions of management are not as important as planning because it provides the basis of all other functions. A) Statement I is correct and Statement II is not correct. B) Both the Statements I and II are not correct. C) Statement II is correct and Statement I is not correct. D) Both the Statements I and II are correct. Show Answer Correct Answer: D) Both the Statements I and II are correct. 49. In order to reduce the lead times, the organization should have an efficient ..... system. A) Integrated inventory. B) Production planning. C) Inventory. D) Purchasing. Show Answer Correct Answer: A) Integrated inventory. 50. What is competitive advantage? A) The examination of the organization's internal strengths and weaknesses. B) The special capabilities of a company that allow it to create a product or service that is measurably better than any competing company. C) A short and specific statement of the business's purpose and direction. D) The company's reason for existing. Show Answer Correct Answer: B) The special capabilities of a company that allow it to create a product or service that is measurably better than any competing company. 51. Which word describes the act of setting goals and determining the best way to achieve them? A) Monitoring. B) Executing. C) Planning. D) Evaluating. Show Answer Correct Answer: C) Planning. 52. Achievable or reachable A) Drive. B) Attainable. C) Impossible. D) Budget. Show Answer Correct Answer: B) Attainable. 53. Which term describes a company's unique selling proposition? A) Competitive Advantage. B) Market Share. C) Brand Equity. D) Customer Loyalty. Show Answer Correct Answer: A) Competitive Advantage. 54. Assertion (A):Rules are general statements that inform what is to be done. Reason (R):Rules do not allow for any flexibility or discretion. A) Both A and R are true and R is the correct explanation of A. B) Both A and R are true but R is not the correct explanation of A. C) A is true but R is false. D) A is false but R is true. Show Answer Correct Answer: A) Both A and R are true and R is the correct explanation of A. 55. Mr. Slabaugh wants to formulate a plan that lays out general guidelines for his employees and leaves room for interpretation. Which one of the following types of plans would best suit his requirement? A) Informal. B) Specific. C) Directional. D) Standing. Show Answer Correct Answer: C) Directional. 56. In a company's SWOT analysis, which of the following is an example of a strength? A) A demographic trend increases demand for the company's product. B) The company's employees are efficient and productive. C) All the above. D) None of the above. Show Answer Correct Answer: B) The company's employees are efficient and productive. 57. A ..... is created by a consumer problem, need, or desire A) Competitive analysis. B) Business Opportunity. C) Financial Prediction. D) None of the above. Show Answer Correct Answer: B) Business Opportunity. 58. What is the term for a formal statement of a set of business goals and the plan for reaching those goals? A) Business Plan. B) Operational Plan. C) Marketing Plan. D) Financial Plan. Show Answer Correct Answer: A) Business Plan. 59. Motivates employees to get the job done. A) Controlling. B) Planning. C) Leading. D) Organizing. E) Staffing. Show Answer Correct Answer: C) Leading. 60. Statement I:Methods provide the prescribed ways or manner in which a task has to be performed considering the objective. Statement II:Method deals with a task comprising one step of a procedure and specifies how this step is to be performed. A) Both the Statements I and II are not correct. B) Both the Statements I and II are correct. C) Statement II is correct and Statement I is not correct. D) Statement I is correct and Statement II is not correct. Show Answer Correct Answer: B) Both the Statements I and II are correct. ← PreviousNext →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Business Studies Chapter 4 Planning Quiz 1Class 12 Business Studies Chapter 4 Planning Quiz 2Class 12 Business Studies Chapter 4 Planning Quiz 3Class 12 Business Studies Chapter 4 Planning Quiz 5Class 12 Business Studies Chapter 4 Planning Quiz 6Class 12 Business Studies Chapter 4 Planning Quiz 7Class 12 Business Studies Chapter 1 Nature And Significance Of Management QuizClass 12 Business Studies Chapter 10 Financial Markets Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books