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Planning (12 Business Studies)

Practise chapter-wise MCQs for Class 12 Business Studies — Planning. Every question comes with the correct answer and an explanation.

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TL;DR: Practise chapter-wise MCQs for Class 12 Business Studies — Planning. Every question comes with the correct answer and an explanation.

Written & reviewed by the Syllab.in Academic Team (CBSE/NCERT subject experts) · Updated Aug 8, 2026

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Practise chapter-wise MCQs for Class 12 Business Studies — Planning. Every question comes with the correct answer and an explanation.

Planning MCQs with Answers & Explanations

Q1. The process of forecasting the future and making assumptions about the conditions under which plans will be executed is known as:

  1. Evaluating alternatives
  2. Choosing an alternative
  3. Setting objectives
  4. Developing premises ✓ (correct)

Explanation: Developing premises involves making assumptions about the future environment, internal and external, on which plans will be based.

Q2. When a manager considers the 'what', 'how', 'when', and 'who' of future action, which element of planning is being addressed?

  1. Action plans/Courses of action ✓ (correct)
  2. Policies
  3. Procedures
  4. Strategies

Explanation: Action plans or courses of action detail the specific steps, resources, and responsibilities required to achieve objectives.

Q3. A company decides that all customer complaints will be handled by the customer service department within 24 hours. This is an example of:

  1. A rule
  2. A policy ✓ (correct)
  3. A budget
  4. A programme

Explanation: A policy provides guidelines for decision-making and action, such as how customer complaints should be handled.

Q4. Which of the following is a single-use plan that details the specific steps to be taken to accomplish a particular objective, often within a specific timeframe?

  1. Strategy
  2. Procedure
  3. Programme ✓ (correct)
  4. Policy

Explanation: A programme is a single-use plan that outlines specific activities, resources, and timelines for a particular project or undertaking.

Q5. Which type of plan sets forth a sequence of established actions or steps to be followed in specific circumstances, ensuring uniformity and predictability?

  1. Policy
  2. Strategy
  3. Budget
  4. Procedure ✓ (correct)

Explanation: A procedure provides a defined sequence of steps to be followed for a particular task or situation, ensuring consistency.

Q6. A manager decides to increase production by 15% next quarter to meet anticipated demand. This is an example of which step in the planning process?

  1. Setting objectives ✓ (correct)
  2. Evaluating alternatives
  3. Identifying alternative courses of action
  4. Developing premises

Explanation: Setting objectives involves defining what the organization wants to achieve in the future, such as increasing production.

Q7. Which of the following is the primary function of management that sets the course of action for the future and involves setting objectives and formulating strategies?

  1. Organising
  2. Planning ✓ (correct)
  3. Controlling
  4. Staffing

Explanation: Planning involves setting objectives and formulating strategies to achieve them, thus setting the course of action for the future.

Q8. Which of the following is a statement of expected results or a quantifiable objective of an action?

  1. Evaluation
  2. Premise
  3. Objective ✓ (correct)
  4. Alternative

Explanation: An objective is a statement of desired future results that the organization aims to achieve.

Q9. The step in the planning process that involves creating a detailed outline of the steps and actions to be taken, considering the available resources and constraints, is known as:

  1. Identifying alternative courses of action
  2. Developing premises
  3. Evaluating alternatives
  4. Developing action plans ✓ (correct)

Explanation: Developing action plans translates the chosen course of action into a concrete set of steps, specifying 'how' the objective will be achieved.

Q10. Which type of plan is a broad blueprint of future action that involves major commitments of resources and is concerned with the long-term objectives of the organization?

  1. Strategies ✓ (correct)
  2. Rules
  3. Procedures
  4. Policies

Explanation: Strategies are broad plans that outline how an organization will achieve its long-term objectives and gain a competitive advantage.

More 12 Business Studies MCQs

  • Nature and Significance of Management
  • Principles of Management
  • Business Environment
  • Organising
  • Staffing
  • Directing

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