This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 4 Planning – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 4 Planning Quiz 6 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is one of the purposes of a business plan? A) To show to potential investors. B) To hide from potential investors. C) To avoid writing business aspects. D) To increase business risks. Show Answer Correct Answer: A) To show to potential investors. 2. A planning tool that helps a business to not over spend. A) Procedure. B) Budget. C) Schedule. D) Policy. Show Answer Correct Answer: B) Budget. 3. Statement I:Single-use plans include budgets, programmes and projects. Statement II:Standing plans include policies, procedures, methods and rules. 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. 4. What should a project manager be willing to do when it comes to change? A) Make quick decisions. B) Foster a workable agreement. C) Share responsibilities. D) Be willing to make changes. Show Answer Correct Answer: D) Be willing to make changes. 5. What is the purpose of the executive summary in a feasibility study report? A) To assess the technical feasibility of the project. B) To explain the project's objectives and scope. C) To highlight the main findings, conclusions, and recommendations. D) To evaluate the market conditions. Show Answer Correct Answer: C) To highlight the main findings, conclusions, and recommendations. 6. What does the 'R' in SMART goal format stand for? A) Realistic. B) Relevant. C) Resourceful. D) Reliable. Show Answer Correct Answer: A) Realistic. 7. Planning can eliminate changes or events. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 8. What does 'scalability' mean in a business context? A) The ability to grow and manage increased demand. B) The ability to reduce costs. C) The ability to maintain current operations. D) The ability to decrease production. Show Answer Correct Answer: A) The ability to grow and manage increased demand. 9. The first step in determining financials for a feasibility study is to A) Determine start-up costs. B) Estimate operating expenses. C) List all sources of funding. D) Estimate expected revenue. Show Answer Correct Answer: A) Determine start-up costs. 10. A business sells 12, 000 units per year. Fixed costs per year are £50, 000 and variable costs are £2.50 per unit. The business's total costs are: A) £80, 000. B) £30, 000. C) £62, 000. D) £54, 800. Show Answer Correct Answer: A) £80, 000. 11. What does the construction costs worksheet in a feasibility study include? A) Architectural fees, engineering fees, quantity surveyor fees. B) Market analysis, financial feasibility, legal assessment. C) Materials, labor, equipment, subcontractors, and contingency. D) Risk analysis, schedule and timeline, recommendation. Show Answer Correct Answer: C) Materials, labor, equipment, subcontractors, and contingency. 12. A fire officer giving a report at the actual scene of the fire is which of the following type of data source? A) Secondary. B) Primary. C) Tertiary. D) Elementary. Show Answer Correct Answer: B) Primary. 13. What is the term for a visual representation of a company's organizational structure? A) Organizational Chart. B) Blueprint. C) Flowchart. D) Roadmap. Show Answer Correct Answer: A) Organizational Chart. 14. Which aspect of planning refers to documents that outline how results are to be achieved? A) Objectives. B) Goals. C) Plans. D) Performance guidelines. Show Answer Correct Answer: C) Plans. 15. Which step in the planning process involves transforming the plan into action? A) Implementation. B) Goal Setting. C) Generating Alternatives. D) Situational Analysis. Show Answer Correct Answer: A) Implementation. 16. Phoenicians were also known as? A) Maritime Traders. B) Manufacturers. C) Intellectuals. D) Reformers. Show Answer Correct Answer: A) Maritime Traders. 17. In traditional goal setting, goals set by top managers flow down through the organization and become subgoals for each organizational area A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 18. The final task in the financial section of a feasibility study is performing a(n) A) Estimate of revenues. B) Organizational assessment. C) Profitability analysis. D) Annual review. Show Answer Correct Answer: C) Profitability analysis. 19. Which of the following best defines the term variable cost? A cost which: A) Stays the same regardless of output. B) Changes with time. C) Changes according to output. D) Changes according to revenue. Show Answer Correct Answer: C) Changes according to output. 20. What is a standard? A) The examination of an 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 specific measure against which something is judged. D) Guidelines used in making decisions regarding specific, recurring situations. Show Answer Correct Answer: C) A specific measure against which something is judged. 21. Which of the following is a major problem that an entrepreneur might encounter when writing a business plan for the first time? A) To explain the business idea and where it came from. B) Forecasting product sales accurately. C) To include details about the owners. D) To find an appropriate format to present the plan. Show Answer Correct Answer: B) Forecasting product sales accurately. 22. Which step in the planning process involves analyzing the current conditions of the business, competition, and target market? A) Evaluating Options. B) Situational Analysis. C) Generating Alternatives. D) Goal Setting. Show Answer Correct Answer: B) Situational Analysis. 23. Competition in the market can also upset financial plans, sales targets have to be revised accordingly, cash budget also needed to be modified. Identify the limitation of planning. A) (i) Planning may not work in dynamic environment. B) (iv) Planning involves decision making. C) (iii) Planning is time consuming. D) (ii) Planning leads to rigidity. Show Answer Correct Answer: A) (i) Planning may not work in dynamic environment. 24. A Vision Statement is? A) Step by step plan. B) Long term. C) Informal plan. D) Short term. Show Answer Correct Answer: B) Long term. 25. New age entreprenuers see an inrease in ..... A) Utilitarian entreprenuers. B) Social Media entrepreneurs. C) Pure entrepreneurs. D) Social revolt. Show Answer Correct Answer: A) Utilitarian entreprenuers. 26. Assertion (A):Budget is a fundamental planning instrument. Reason (R):Making a budget involves forecasting, therefore, it clearly comes under planning. 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. 27. What information about the creators of the business is usually provided in a business description? A) Titles and responsibilities, experience. B) Marketing strategy, financial plan. C) Products or services, location. D) Titles and salaries, number of employees. Show Answer Correct Answer: A) Titles and responsibilities, experience. 28. Which of the following is not an invention of the Neolithic Period? A) Pottery. B) Herding. C) Tool Building. D) Glass Making. Show Answer Correct Answer: D) Glass Making. 29. Which of the following defines the term revenue? A) The money the business makes after variable costs are deducted. B) The money the business makes after fixed costs are deducted. C) The money the business makes after total costs are deducted. D) The money the business makes from selling its goods or services. Show Answer Correct Answer: D) The money the business makes from selling its goods or services. 30. A manager assigns his stock clerks to particular aisles to stock the shelves. A) Staffing. B) Leading. C) Organizing. D) Controlling. E) Planning. Show Answer Correct Answer: C) Organizing. 31. Why is it important to have a business plan? A) To clearly identify in writing all aspects of your business. B) To increase the risk. C) To avoid showing to potential investors. D) To reduce the clarity of business aspects. Show Answer Correct Answer: A) To clearly identify in writing all aspects of your business. 32. What is the purpose of writing a business plan? A) To wait for the next business venture. B) To turn an idea into actionable steps. C) To brainstorm ideas. D) To pitch on TV. Show Answer Correct Answer: B) To turn an idea into actionable steps. 33. What is the purpose of the professional fees worksheet in a feasibility study? A) To outline the costs of various professional services involved in the project. B) To estimate ongoing costs of the project. C) To assess potential risks and uncertainties. D) To evaluate the market conditions. Show Answer Correct Answer: A) To outline the costs of various professional services involved in the project. 34. A manager goes through resumes to determine the best candidates for the job opening. A) Leading. B) Staffing. C) Organizing. D) Controlling. E) Planning. Show Answer Correct Answer: B) Staffing. 35. The cost of ERP is ..... A) Depends on the package. B) Depends on available resources. C) Technology used. D) All the above. Show Answer Correct Answer: D) All the above. 36. In business terms, what is a 'benchmark'? A) A standard or point of reference in measuring performance. B) A financial statement. C) A type of investment. D) A marketing strategy. Show Answer Correct Answer: A) A standard or point of reference in measuring performance. 37. How does limiting a company's scope benefit the company? A) It makes it easier to produce a high quality product. B) It allows the company to hire more employees. C) All the above. D) None of the above. Show Answer Correct Answer: A) It makes it easier to produce a high quality product. 38. What is a line organization? A) Being able to trace all authority and responsibility in a direct line from the top executive down to the lowest employee level in the organization. B) The examination of the organization's internal strengths and weaknesses. C) The obligation to accept responsibility for the outcomes of assigned tasks. D) The right to make decisions about work assignments and to require other employees to perform assigned tasks. Show Answer Correct Answer: A) Being able to trace all authority and responsibility in a direct line from the top executive down to the lowest employee level in the organization. 39. What is meant by the term "mission statement" ? A) A broad statement of a business purpose and goals/objectives. B) A plan of action for future years. C) A plan of missions in overseas markets/countries. D) Statement read by a business's CEO during a press conference. Show Answer Correct Answer: A) A broad statement of a business purpose and goals/objectives. 40. Most businesses have only the single goal of making profits A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 41. Which of the following is not likely to increase productivity levels? A) Investing in capital equipment. B) Extra training given to employees. C) Improving worker motivation. D) Reducing pay of production workers. Show Answer Correct Answer: D) Reducing pay of production workers. 42. Planning performed at A) Top level. B) Moddle level. C) Supervising level. D) All levels. Show Answer Correct Answer: D) All levels. 43. Operational plans are usually ..... A) Short term, directional, and standing. B) Short term, specific, and standing. C) Long term, directional, and single use. D) Long term, specific, and standing. Show Answer Correct Answer: B) Short term, specific, and standing. 44. Which of the following is one of the main things to consider when evaluating a business opportunity? A) Customer demand for the product. B) Style and entertainment trends. C) The mission statements of competitors. D) None of the above. Show Answer Correct Answer: A) Customer demand for the product. 45. Who will point out the issues that are specific to the company during ERP implementation? A) Vendor. B) In-house team. C) Management. D) End user. Show Answer Correct Answer: B) In-house team. 46. Planning eahtablish base or standard for A) Directing. B) Organising. C) Controlling. D) Staffing. Show Answer Correct Answer: C) Controlling. 47. Which of the following is an advantage to a new business start-up of producing a business plan? A) It will ensure sales targets are met. B) It will not need to be referred to again by the business owner. C) It will help test financial viability. D) It will guarantee survival. Show Answer Correct Answer: C) It will help test financial viability. 48. What would be a potential threat to a business? A) Changes in technology and markets e.g. The internet. B) Ability to prioritize. C) Flexibility. D) Intrusions in the market. Show Answer Correct Answer: D) Intrusions in the market. 49. A written document that describes an idea for a product or service and how it will make money. A) List of Expenses. B) Startup Costs. C) Business Plan. D) None of the above. Show Answer Correct Answer: C) Business Plan. 50. What does the SMART acronym stand for? A) Specific, Measurable, Actionable, Relevant, Time-bound. B) Strategic, Meaningful, Ambitious, Resourceful, Targeted. C) Structured, Measured, Achievable, Realistic, Timely. D) Simplified, Managed, Adapted, Reviewed, Tracked. Show Answer Correct Answer: A) Specific, Measurable, Actionable, Relevant, Time-bound. 51. What is a procedure? A) The examination of the organization's internal strengths and weaknesses. B) A sequence of steps to be followed for performing a specific task. C) A time plan for reaching objectives. D) The specific measure against which something is judged. Show Answer Correct Answer: B) A sequence of steps to be followed for performing a specific task. 52. Assertion (A):Proper Planning always guarantees success. Reason (R):Highly qualified professionals are appointed for carrying out the planning process. 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. 53. Period of ..... was also known as Dark Ages. A) Phoenicians. B) Renaissance. C) California Gold Rush. D) Roman Merchants. Show Answer Correct Answer: D) Roman Merchants. 54. Which of the following is an example of a goal expressed quantitatively? A) Sales. B) Customer satisfaction. C) Employee engagement. D) Brand awareness. Show Answer Correct Answer: A) Sales. 55. Assertion (A):Time is an important ingredient of Planning. Reason (R):Plans are always developed for a fixed time period as no business can go on planning endlessly. 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. 56. ERP package will handle ..... business functionalities A) One. B) Two. C) Three. D) All. Show Answer Correct Answer: D) All. 57. An information system produces information using the ..... cycle. A) Input-process-output. B) Input-output. C) Data analysis. D) Process-input-output. Show Answer Correct Answer: A) Input-process-output. 58. How many components are there in a business plan? A) 12. B) 14. C) 10. D) 11. Show Answer Correct Answer: D) 11. 59. Assertion (A):Monitoring of plans is very important to ensure that the plans are being implemented according to the schedule. Reason (R):Regular checks and comparisons of the results with set standards are done to ensure that objectives are achieved. 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. 60. Assertion (A):Plans ensure clarity of thoughts and action. Reason (R):Planning process forces the managers to think differently. 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. ← 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 4Class 12 Business Studies Chapter 4 Planning Quiz 5Class 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