Excel in Chapter 4 – Planning with Our MCQ-Based Mock Test!

Are you confident about one of the most essential functions of management — Planning?
Test your preparation with this MCQ-Based Mock Test on “Planning”, created for Class 12 Business Studies students following the latest CBSE syllabus (2025–26).

This test covers every key concept, from the meaning, importance, and features of planning to its limitations, steps in the planning process, and the difference between single-use and standing plans — all presented through carefully chosen multiple-choice questions.

Why Attempt This Mock Test?
Based on the latest CBSE and NCERT pattern
Includes conceptual, case-based & competency MCQs
Helps you analyze your strengths and weak areas
Perfect for quick revision and board exam readiness
Provides instant feedback for better learning outcomes

Practice smart, build confidence, and plan your success!
Take the Chapter 4: Planning MCQ Mock Test today and make your BST preparation more effective than ever.

1. Planning involves thorough examination and evaluation of each alternative and choosing the most appropriate one. Identify the feature of Planning highlighted by the given statement.

Planning is pervasive

Planning is a mental exercise.

Planning is a continuous process.

Planning involves decision-making.

2. Identify the correct sequence of steps of planning process.

Setting objectives, Identify alternative courses of action, Implementation of plan, Evaluation of alternative courses of action

Setting objectives, Implementation of plan, Evaluation of alternative courses of action, Identify alternative courses of action

Setting objectives, Identify alternative courses of action, Implementation of plan, Evaluation of alternative courses of action

Setting objectives, Identify alternative courses of action, Evaluation of alternative courses of action, Implementation of plan

3. Which function of management is depicted by the image given below:

Planning

Organising

Directing

Staffing

4. Which type of plan is depicted in the picture given below?

Policy

Method

Rule

Procedure

5. Formation of major plan and framing of overall policies is the task of top level managers whereas departmental managers form plan for their respective departments and lower level managers make plans to support the overall objectives and to carry on day to day activities. Identify the feature of planning highlighted above.

Planning is continuous

Planning is futuristic

Planning is pervasive

Planning involves decision-making

6. If an organisation sets the objective to increase the sales by 10%, then the sales can be increased by

(i) Adding more lines of products

(ii) Offering products at discount

(iii) increasing the expenditure on advertising Identify the step of planning process.

Implementation of plan

Identifying alternative courses of action

Follow up of plan

Evaluating alternative courses of action

7. Which step in the process of ‘Planning’ function of management involves weighing pros and cons of each alternative?

Developing Premises

Identifying alternative courses of action

Evaluating alternative courses

Selecting an alternative

8. Which of the following statements not true with reference to planning?

Planning is pre-requisite for controlling.

Planning does not look into future.

Planning facilitates coordination in organisation.

Planning focuses on achieving objectives.

9. Match the various terms related to planning in Column I with their respective statements in Column II and choose the correct alternative:

Column I

Column II

A. Planning Premises

B. Futuristic

C. Facilitates decision making

(i) Peeping into future, analysing it and predicting

(ii) Choice from amongst alternatives

(iii) Assumptions about future

A – (ii), B – (iii), C – (i)

A – (i), B – (iii), C – (ii)

A – (iii), B – (i), C – (ii)

A – (i), B – (ii), C – (iii)

10. All managers dream to increase their sales and strive to achieve the organisational goals but to turn these dreams into reality, managers need to work hard in thinking about the future, in making business predictions and achieving the targets. Identify the functon of management highlighted in the given paragraph.

Planning

Organising

Controlling

Directing

11. Statement I: Planning may not work in a dynamic environment.

Statement II: There may be obstacles to effective planning as it cannot foresee everything.

Statement I is true and II is false

Statement II is true and I is false

Both the statements are true

Both the statements are false

12. Statement I: A manager develops premises, i.e., assumptions about the future in the course of planning.

Statement II: These assumptions may differ from manager to manager and there may or may not be total agreement on them.

Statement I is true and II is false

Statement II is true and I is false

Both the statements are true

Both the statements are false

13. “A plan is framed; it is implemented and is followed by another plan and so on.” Identify the feature of planning highlighted above.

Planning is continuous

Planning is futuristic

Planning is pervasive

Planning involves decision-making

14. A comprehensive plan for accomplishing an organisation’s objective is known as:

Policy

Objective

Method

Strategy

15. ___________ provides the prescribed ways in which a task has to be performed considering the objective.

Method

Budget

Procedure

Rule

16. Planning precedes other functions as all the other managerial functions are performed within the framework of planning. Identify the feature of planning from above statement:

Planning is futuristic

Planning is continuous

Planning is the primary function of management

Planning involves decision making

17. Which step in the process of planning will precede the step in which the manager is required to make certain assumptions about the future, which are the base material upon which the plans are drawn?

Implementing the plan

Identifying alternative courses of action

Setting objectives

Selecting an alternative

18. Observe the picture given below and identify the feature of planning highlighted in it.

Planning is pervasive

Planning is a primary function of management

Planning is continuous

Planning focuses on achieving objectives

19. Packaging is said to have the unique capacity to make products stand out in a crowded market place. Therefore, the convenience of the consumer is at the top of the mind of the marketers as they are focussing on developing packaging that’s easier to open, to protect against breakage, maintain freshness during delivery and keep a consistent look and feel across multiple channels. Identify the type of plan being described in the above lines.

Programme

Method

Strategy

Rule

20. A ___________ is developed for a one-time event, not likely to be repeated in future.

Standing Plan

Single Use Plan

Both (a) and (b)

Neither (a) nor (b)

21. Which of the following statements correctly explains the limitation of planning ‘Planning does not guarantee success’?

Planning is required at all levels of management and in all the departments of the organisation.

Planning involves thorough examination and evaluation of available alternatives.

Relying on a previously tried and tested successful plan just because it had worked before and will work again.

By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events.

22. Observe the picture given below and identify the feature of planning highlighted in it.

Planning is pervasive

Planning is a primary function of management

Planning is continuous

Planning focuses on achieving objectives

23. Looking into the shift taking place in the markets where consumers are now becoming more vocal, more demanding and, above all, more global and as middleclass demand for products and services grows, smart businesses are now looking beyond their organisations and industries, recognising that partnering and engagement with global suppliers and customers are key to future success. Which steps of Planning are being referred to?

Laying down objectives; Planning premises

Identifying the alternatives; Evaluating the alternatives

Implementation of plan; Follow up

Planning premises; Selecting the best alternative

24. Statement I: Planning is the most challenging activity for the management as it guides all future actions.

Statement II: Sometimes, the cost incurred for planning may not justify the benefits derived from the plans.

Statement I is true and II is false

Statement II is true and I is false

Both the statements are true

Both the statements are false

25. Statement I: A single use plan is developed for a onetime event.

Statement II: Policies and Methods are single use plans.

Statement I is true and II is false

Statement II is true and I is false

Both the statements are true

Both the statements are false

26. Employees become blind followers of plan as stated by superiors, so planning:

leads to improve decision-making

leads to reduce creativity

leads to rigidity

leads to guarantee to success

27. Match the various terms related to planning in Column I with their respective statements in Column II and choose the correct alternative:

Column I

Column II

A. Reduces wasteful activities

B. Reduces risk of uncertainty

C. Provides direction

D. Establishes standards for controlling

(i) Changes are anticipated and managerial response to them developed

(ii) Goals are clearly stated acting as guide for future actions

(iii) Actual performance is measured and deviations if any found out

(iv) Basis of coordinating efforts of different departments

A – (ii), B – (iii), C – (i), D – (iv)

A – (iv), B – (i), C – (ii), D – (iii)

A – (iii), B – (iv), C – (i), D – (ii)

A – (iv), B – (i), C – (iii), D – (ii)

28. Statement I: Planning is a mental exercise.

Statement II: Planning requires guesswork and wishful thinking.

Statement I is true and II is false

Statement II is true and I is false

Both the statements are true

Both the statements are false

29. Statement I: Planning is an exclusive function of the top management.

Statement II: Planning is required at all levels of management.

Statement I is true and II is false

Statement II is true and I is false

Both the statements are true

Both the statements are false

30. Which of the following statements is incorrect?

Procedures are routine steps on how to carry out activities.

Procedures are specified steps to be followed in particular circumstances.

Procedures are steps to be carried out within a broad policy framework.

Procedures are generally meant for outsiders to follow.

Question 1 of 30