Importance of planning

Correct answer: A. Statement is wrong because planning helps but does not guarantee

Planning can increase possibility of success but does not guarantee profit. Statements of certainty are wrong.

Correct answer: A. Identify clues of direction risk wastage decision innovation control and coordination

Different clues show different benefits in case questions. Standards indicate control and duplication indicates wastage.

Correct answer: A. Risk reduction benefit is shown but direction-giving benefit is weak

Future preparation reduces risk but objective direction must reach employees. In cases identify different benefits from different clues.

Correct answer: D. Promoting innovative ideas

The governing concept is planning as a stimulus for creative and innovative thinking. The organisation is not simply continuing the old membership arrangement; it is imagining a flexible subscription model to respond to customer needs or changing conditions. Generating such an alternative is evidence that planning creates space for new ideas and improved approaches. Therefore, option D is correct. Option A is wrong because planning normally supports control through objectives and standards. Option B is wrong because a model is being redesigned, not an objective concealed. Option C is not necessarily true: a new idea may involve uncertainty, but the case asks what benefit the creative proposal demonstrates. Any risk can be assessed through further planning and testing; it is not the identified benefit.

Correct answer: A. Planning estimates possible events and prepares

The governing concept is that planning reduces uncertainty by anticipating possible future conditions and preparing suitable responses. Managers may study trends, make forecasts, identify alternatives and allocate resources in advance. Such preparation improves readiness and can limit the effect of an unfavourable event, which is why option A gives the correct meaning. Planning does not make every event certain, so option B is an exaggeration. It does not remove the need for forecasting; forecasting is often an important input to planning, making option C incorrect. It also cannot reduce every risk to zero, because unexpected events and imperfect information remain possible. Risk reduction means better preparedness, not a guarantee of complete protection.