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Subjects

Business Studies

Importance of planning

In this Class 12 Business Studies topic from the chapter “Planning,” students learn why planning is essential for effective management. The topic explains how clear objectives and well-designed courses of action provide direction, coordinate efforts, reduce uncertainty and waste, support better decision-making, encourage innovative thinking, and establish standards for control. It also helps students understand the practical value of planning in achieving organisational goals and managing business activities systematically.

Medium · Level 4 · 25 questions

Practice questions

01If planning clarifies which work should be done first what benefit is obtained?

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02A company plans a bulk purchase before a possible rise in prices. Which importance of planning does this illustrate?

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03Due to planning a manager thinks of a new distribution model instead of the old method. Which importance is this?

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04Which statement correctly clarifies the direction giving importance of planning?

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05What benefit does planning provide when possible obstacles are considered in advance?

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06Why does planning make it easier to identify deviations during controlling?

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07Which example shows planning reducing wasteful activities?

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08Which statement about the importance of planning is incorrect?

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09If planning identifies which resources will be needed and when, what benefit can this provide?

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10Due to planning an organisation experiments with new advertising ideas. Which benefit is shown?

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11When planned production is set in advance and actual production is compared with it, which benefit of planning does this show?

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12When does planning help give a common direction to people's efforts?

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13How can planning reduce the risks arising from uncertainty?

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14If a company decides objectives and work method in advance what benefit do employees get?

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15If due to planning the production department does not make extra stock what benefit is obtained?

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16New product ideas created through creative thinking in planning relate to which importance?

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17If a plan does not set performance standards, what will a manager find difficult to assess?

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18If planning leads a team to prepare a response in advance to a possible problem, which benefit does this illustrate?

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19A manager lists planned activities and removes unnecessary ones. Which importance of planning does this illustrate?

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20Which statement gives the correct group of major importance of planning?

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21If planning makes it clear to everyone which campaign is the priority for next month, which benefit does this show?

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22Which option correctly states the most practical importance of planning?

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23When planning helps an organisation decide in advance which expenses are necessary and which can be avoided, what benefit does it provide?

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24When employees discuss possible alternatives during the planning process, what positive effect may this have?

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25A medicine company prepares to increase cough syrup production before the monsoon. Which benefit of planning does this illustrate?

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