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

 
 
 
 

2. Which function of management closely related to planning?

 
 
 
 

3. The Statement “Planning is a primary function”, suggests that ___________.

 
 
 
 

4. Planning has no meaning unless it contributes to the achievement of pre-determined organisational goals. Identify the feature of planning from given statement.

 
 
 
 

5. Planning requires logical and systematic thinking rather than guess work. The feature of planning being referred to in the above statement is:

 
 
 
 

6. Which of the following statements about planning is true?

 
 
 
 

7. Most plans may not always be subjected to a mathematical analysis. In such cases, subjectivity and the manager’s experience and judgement are taken into consideration. Identify the step of planning process.

 
 
 
 

8. Which function of management bridges the gap between where we are and where we want to go?

 
 
 
 

9. ___________ provides a rational approach for setting objectives and developing appropriate courses of action for achieving pre-determined objectives.

 
 
 
 

10. ‘Indian Drugs and Pharmaceuticals Ltd.’ is engaged in the manufacturing and distribution of medicines. The company has set up an objective of increasing its sales turnover by 20%. To achieve this objective, the company has decided to diversify into baby health care products. Accordingly, the company has identified various alternative courses of actions for the diversification process. They divided this process by determining the positives and the negatives and selected the ideal plan which is the most feasible and profitable.

Which steps of planning have been followed in the above case?

 
 
 
 

11. Which activity will be a futile exercise if it is not acted upon or implemented?

 
 
 
 

12. “Sales forecasting is the basis on which a business firm prepares its annual plan for production and sales.” Which feature of planning is highlighted in the above lines?

 
 
 
 

13. In planning, generally managers have to follow predetermined plans and they are not in a position to change it. This statement highlights the following limitation of planning:

 
 
 
 

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

 
 
 
 

15. What may be prepared to show the number of workers required in the factory at peak production times? Select the appropiate word out of the following.

 
 
 
 

16. “Changes or events cannot be eliminated but they can be anticipated and managerial responses to them can be developed” is suggested by the following importance of planning:

 
 
 
 

17. The last step in the process of planning is:

 
 
 
 

18. Which importance of planning is highlighted in the lines, “If goals are well-defined, employees are aware of what the organisation has to do and what they must do to achieve those goals”?

 
 
 
 

19. Which of the following quality a manager must possess to succeed in planning?

 
 
 
 

20. A manager is required to make certain assumptions about the future which may be in the form of forecast. This step of planning is known as:

 
 
 
 

21. The first step in the process of planning is:

 
 
 
 

22. Planning is closely connected with ___________ and ___________.

 
 
 
 

23. While selecting the best possible course of action, what manager will have to apply?

 
 
 
 

24. Which of the following is a single use plan?

 
 
 
 

25. What are general forms of standing plans that specify the organisations response to certain situation like the basis on which admission are done in an educational institution?

 
 
 
 

26. ‘Planning is an intellectual activity of thinking rather than doing’. Which feature of planning is highlighted in this statement ?

 
 
 
 

27. “It is not always true that just because a plan has worked before it will work again. Besides, there are so many other unknown factors to be considered. This kind of complacency and false sense of security may actually lead to failure of planning.” Identify the limitation of planning being highlighted above.

 
 
 
 

28. Which type of plan is a combination of objective, policies, procedures, rules etc.?

 
 
 
 

29. 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.

 
 
 
 

30. Which of the following is not a step in the process of planning?

 
 
 
 

Question 1 of 30