Kerala State Board New Syllabus Plus Two Business Studies Chapter Wise Previous Questions and Answers Chapter 4 Planning.
Kerala Plus Two Business Studies Chapter Wise Previous Questions Chapter 4 Planning
Plus Two Business Studies Planning 1 Mark Important Questions
Question 1.
Find out the correct pair: (MAY-2009)
a) Objective – Promotion is based on merit only.
b) Policy – Time rate system of wage payment.
c) Rule – No smoking
d) Method – Make a profit of 40% on capital invested
Answer:
a) Rule – No smoking
Question 2.
Aswathy Automobiles Ltd. has decided to open five showrooms in different parts of the State to meet the increased demand of motor cars. Identify the type of plan in which the decision can be included. (MAY-2010)
Answer:
Programmes
Question 3.
Hindustan Motors Ltd. decided to increase the production of ambassador cards by 10% in the year 2010-11. Identify the type of plan in which the decision can be included. (MAY-2011)
Answer:
Objective
Question 4.
Budget is an instrument of (MARCH-2012)
a) Planning only
b) Control only
c) Both planning and control
d) None of these
Answer:
Both planning and control
Question 5.
The breakup of master plan department wise and sectional wise to support the master plan is called _____ (MAY-2012)
Answer:
Derivative Plan
Question 6.
What do you mean by ‘planning premises’? (MARCH-2013)
Answer:
All planning involves certain assumptions about the future which are known as planning premises.
Question 7.
The management of Sunlight Detergents Ltd. has decided to increase the sales of washing powder by 5 percent. Identify the element of planning in which the decision can be included. (MAY-2013)
Answer:
Objectives
Question 8.
Identify the odd one and justify. (MARCH-2014)
a) Motivation
b) Policies
c) Procedure
d) Objectives
Answer:
Motivation. Others are types of plans.
Question 9.
The basic material upon which plans are drawn is known as ______.
Answer:
Planning premises
Question 10.
Find the odd one from the following:
a) Rule
b) Procedure
c) Policy
d) Objective
Answer:
b) Procedure
Question 11.
Specific statements that tell you about what is to be done are
a) Rules
b) Procedures
c) Policy
d) Strategy
Answer:
a) Rules
Question 12.
The basic material upon which plans are drawn is known as _______
Answer:
Planning premises.
Question 13.
A statement of expected results expressed in numerical terms is known as:
a) Budget
b) Programme
c) Policy
d) Strategy
Answer:
a) Budget
Plus Two Business Studies Planning 2 Marks Important Questions
Question 1.
Identify the type of plan from the following statements and explain its meaning.(FEBRUARY-2009)
a) Smoking is prohibited in the factory premises.
b) Sales only on cash basis.
Answer:
a) Rule
b) Policy
Question 2.
Defect the differences in the following statements contained in a firms plan.(FEBRUARY-2010)
a) We sell goods only on cash basis.
b) Smoking is prohibited in the factory premises.
Answer:
a) Policy
b) Rule
Question 3.
Draw a hierarchy of plans by rearranging the following by taking budget as the base.(MARCH-2010)
Budget, Rules, Policies, Objectives, Procedures, Methods and Programmes.
Answer:
Hierarchy of plans
Question 4.
State the limitations of planning. (MARCH-2014)
Answer:
1) Planning makes the activities rigid.
2) Long term plans are insignificant in the rapidly changing business environment.
Plus Two Business Studies Planning 3 Marks Important Questions
Question 1.
“Planning is of vital importance in the managerial functions but it is noHree from limitations”. Do you agree with this statement? Justify your views. Mention any two limitations of planning. (MAY-2011)
Answer:
a) I agree
b) 1) Planning makes the activities rigid.
2) Long term plans are insignificant in the rapidly changing business environment.
3) It reduces creativity.
4) It involves cost.
Question 2.
Mr. Shallmon, the Production Manager of RM. Ltd., prepared a plan of actipn for the next month. Mr. Hari, the newly appointed assistant asked him, why he is giving this much importance to planning. Give answerto the question of Hari. (MARCH-2012)
Answer:
1) Planning provides directions
2) Planning reduces the risk of uncertainty
3) Planning reduces wasteful activities
4) Planning promotes innovative ideas
5) Planning facilitates decision making
6) Facilitates control
Question 3.
Even though planning is important in business, it suffers some limitations also. Explain any three limitations of planning.
Answer:
Limitations of Planning
1) Planning makes the activities rigid.
2) Long term plans are insignificant in the rapidly changing business environment.
3) It reduces creativity.
4) It involves cost.
5) It involves a lot of time.
6) Planning does not guarantee success.
Plus Two Business Studies Planning 4 Marks Important Questions
Question 1.
You are going to conduct a field trip to V-Guard Industries. You are required to make a detailed plan covering different steps in planning. (FEBRUARY-2009)
Answer:
Question 2.
“Planning, the primary function of management, suf- fersfrom a number of limitations.” Elucidate. (MAY-2009)
Answer:
Limitations of Planning
1) Planning makes the activities rigid.
2) Long term plans are insignificant in the rapidly changing business environment.
3) It reduces creativity.
4) It involves cost.
5) It involves a lot of time.
6) Planning does not guarantee success.
Question 3.
Mr.Gopinathan, an Engineer, has decided to start a small scale industrial unit. As a commerce student, you are asked to prepare a plan of action for this business. In this respect state the steps to be followed in the planning process. (MAY-2010)
Answer:
a) Planning
b) Planning Process (Steps in Planning)
1) Setting Objectives: The first step in planning is setting objectives. Objectives may be set for the entire organisation and for each department. The objective must be specific and clear.
2) Developing premises : Planning is based on certain assumptions about the future. These assumptions are called planning premises. Forecasting is important in developing planning premises.
3) Identifying alternative courses of action: The next step in planning is to identify the alternative courses of action to achieve the objectives.
4) Evaluating alternative Courses : The pros and cons of various alternatives must be evaluated in terms of their expected cost and benefits.
5) Selecting an alternative : After evaluating the alternatives the manager will select that alternative which gives maximum benefit at minimum cost.
6) Implement the plan : Implementation of plan means putting plans, into action so as to achieve the objectives of the business.
7) Follow up action : Plans are to be evaluated regularly to check whether they are being implemented and activities are performed according to schedule.
Question 4.
Explain the following terms: (MARCH-2011)
a) Objectives
b) Procedure
c) Programmes
Answer:
Objectives : Objectives are the ends, towards which activity is aimed at forthe accomplishment of organizational goals. Objective should be measurable in quantitative terms.
2) Procedure : Procedure is a chronological sequence or steps to be undertaken to enforce a policy.
3) Programme : Programme includes all the activities necessary for achieving a given objective. Programmes are the combination of goals, policies, procedures and rules.
Question 5.
“A policy is a guide to thinking and step to decision making.” Do you agree with this statement? Justify your answer. Give two examples of the policies of a firm.(MAY-2013)
Answer:
Policy : Policy is a broad statement formulated to provide guidelineSm decision making.
Eg. 1) Promotion based on merits only.
2) We don’t sell on credit.
Question 6.
The Board of Directors of National Aluminium Co. Ltd. decided to implement the following plans in their production department during the year 2014.
a) Increase the production by 10% in the year 2014.
b) Only ITI certificate holders should be appointed.
c) All employees should punch at the factory gate at 8 am.
d) Newly selected employees should be given one month training.
1) Classifies the plans adopted by the National Aluminium Co. Ltd.
2) Establish the reasons for such classification.
Answer:
a) Objective-Targetto be achieved
b) Policy – Guide in decision making
c) Rule – Rigid policy which cannot be changed.
d) Programme-All activities necessary for achieving a given objective.
Question 7.
What are the steps the management need to take in the process of planning?
Answer:
a) Planning
b) Planning Process (Steps in Planning)
1) Setting Objectives: The first step in planning is setting objectives. Objectives may be set for the entire organisation and for each department. The objective must be specific and clear.
2) Developing premises : Planning is based on certain assumptions about the future. These assumptions are called planning premises. Forecasting is important in developing planning premises.
3) Identifying alternative courses of action: The next step in planning is to identify the alternative courses of action to achieve the objectives.
4) Evaluating alternative Courses : The pros and cons of various alternatives must be evaluated in terms of their expected cost and benefits.
5) Selecting an alternative : After evaluating the alternatives the manager will select that alternative which gives maximum benefit at minimum cost.
6) Implement the plan : Implementation of plan means putting plans, into action so as to achieve the objectives of the business.
7) Follow up action : Plans are to be evaluated regularly to check whether they are being implemented and activities are performed according to schedule.
Question 8.
“Planning is certainly important as it tells us where to go; it provide direction and reduces the risk of uncertainty.” Briefly explain the importance of planning in the light of above statement.
Answer:
Importance of Planning
1) Planning provides directions : By stating in advance how work is to be done planning provides direction for all actions.
2) Planning reduces the risk of uncertainty : Planning enables an organisation to predict future events and prepare to face the unexpected events.
3) Planning reduces wasteful activities: Planning serves as the basis of co-ordinating the activities and efforts of different departments and individuals. It helps to eliminate useless and redundant activities.
4) Planning promotes innovative ideas : Since planning is thinking in advance, there is scope for finding better and different methods to achieve the desired objectives.
5) Planning facilitates decision making: Planning helps in decision making by selecting the best alternative among the various alternatives.
6) Facilitates control: Planning provides the basis for control. Planning specifies the standard with which the actual performance is compared to find out deviation and taking corrective action.
Question 9.
Briefly explain the various limitations of planning the business managers need to overcome.
Answer:
Limitations of Planning
1) Planning makes the activities rigid.
2) Long term plans are insignificant in the rapidly changing business environment.
3) It reduces creativity.
4) It involves cost.
5) It involves a lot of time.
6) Planning does not guarantee success.
Plus Two Business Studies Planning 5 Marks Important Questions
Question 1.
While asking questions in the classroom the teacher asks Kala about the important functions of manage¬ment. She replies: Organising, staffing, directing and controlling.(MARCH-2009)
The teacher replies that one of the important functions is missing. The teacher gives one clue that it is the preliminary function of management.
a) Identify the function.
b) What are the different steps involved in that function.
Answer:
a) Planning
b) Planning Process (Steps in Planning)
1) Setting Objectives: The first step in planning is setting objectives. Objectives may be set for the entire organisation and for each department. The objective must be specific and clear.
2) Developing premises : Planning is based on certain assumptions about the future. These assumptions are called planning premises. Forecasting is important in developing planning premises.
3) Identifying alternative courses of action: The next step in planning is to identify the alternative courses of action to achieve the objectives.
4) Evaluating alternative Courses : The pros and cons of various alternatives must be evaluated in terms of their expected cost and benefits.
5) Selecting an alternative : After evaluating the alternatives the manager will select that alternative which gives maximum benefit at minimum cost.
6) Implement the plan : Implementation of plan means putting plans, into action so as to achieve the objectives of the business.
7) Follow up action : Plans are to be evaluated regularly to check whether they are being implemented and activities are performed according to schedule.
Question 2.
Ganga, a commerce student, argue in a class debate that planning ends with the selection of best alternative. But Parvathy of same class opposed the argument stating the planning continues even after the selection of best alternative.(FEBRUARY-2010)
a) To whom do you agree?
b) Explain the steps to be followed after the selection of best alternative
Answer:
a) Parvathy.
b) 1) Setting Objectives
2) Developing premises
3) Identifying alternative courses of action
4) Evaluating alternative Courses
5) Selecting an alternative
6) Implement the plan
7) Follow up action