Question 1 Easy Level 90
When immediate decision is not possible because of excessive data analysis in planning which limitation is it? A Planning can be time consuming B Planning ensures profit C Planning makes all estimates correct D Planning gives leave to employees
Correct answer: A Excessive analysis slows decisions. In exams connect data analysis delay with time consuming planning.
View question details Question 2 Easy Level 90
A hotel planned for foreign tourists but travel rules suddenly changed. Which limitation is shown? A Planning appoints employees B Planning may be affected by government rules C Planning fixes all travel D Planning removes cost
Correct answer: B Travel rules are external government factors. In exams treat travel rule change as an external limitation.
View question details Question 3 Easy Level 90
If the targets fixed in a plan are too high and available machines are few what is the plan like? A Fully certain B Cost free C Unrealistic D Automatically successful
Correct answer: C A very high target with fewer resources is difficult to implement. In exams write resource mismatch as unrealistic plan.
View question details Question 4 Easy Level 90
If a new course was not liked by students despite planning what is the correct conclusion? A Planning makes preference certain B Planning controls all students C Planning makes cost zero D Planning does not guarantee success
Correct answer: D Student preference cannot be made fully certain. In exams connect lack of acceptance with no guarantee.
View question details Question 5 Easy Level 90
Which option is an example of rigidity in planning? A Applying the same old distribution list even in a changed situation B Clarifying objectives C Understanding budget D Studying market
Correct answer: A Applying an old list in a changed situation reduces flexibility. In exams connect fixed list with rigidity.
View question details Question 6 Easy Level 51
If managers cannot deal with a new seller because the old seller’s name is fixed in the plan, which limitation is illustrated? A Planning increases profit B Planning may limit alternatives C Planning is tax collection D Planning is a recruitment process
Correct answer: B The governing concept is rigidity in planning, which can restrict managerial alternatives. A plan should provide direction, but it should not prevent reasonable adaptation when circumstances change. If the name of one seller is fixed and managers cannot consider a new supplier who may offer better price, quality or delivery, the plan has become excessively rigid. Option B is correct because it states that planning may limit alternatives. Option A is a possible aim rather than a limitation, while options C and D are unrelated descriptions of taxation and recruitment. Periodic review and conditional provisions can reduce this problem.
View question details Question 7 Easy Level 90
If a plan was based on last month's demand but product demand changed because of sudden weather change what is clear? A Planning is unrelated to future B Past demand is always correct C Planning is based on an uncertain future D Planning is only accounting work
Correct answer: C Past demand does not guarantee the future fully. In exams connect past demand with uncertain future.
View question details Question 8 Easy Level 90
If preparing a plan costs so much that the possibility of small benefit is also lost what is the limitation? A Planning leads to rigidity B Planning does not guarantee success C Planning is a time-consuming process D Planning may be costly
Correct answer: D The correct answer is that planning may be costly. Collecting information, hiring experts, forecasting and conducting meetings can make the planning process expensive. If this cost exceeds the expected benefit, planning is not economically worthwhile. ‘Time-consuming process’ is a close distractor, but the question specifically refers to monetary cost. Exam tip: link this limitation with a cost-benefit comparison.
View question details Question 9 Easy Level 90
A restaurant planned only dine in service but customers started wanting home delivery. This is an example of which limitation? A Planning is affected by changing customer habits B Planning cooks food C Planning is banking D Planning stops salary
Correct answer: A Changing customer habits are a change in market environment. In exams treat home delivery demand as dynamic environment.
View question details Question 10 Easy Level 90
If employees cannot work in a better sequence according to their understanding because of fixed targets in the plan which limitation is it? A Planning opens market B Planning may reduce initiative C Planning reduces tax D Planning gives loan
Correct answer: B Not choosing a better sequence by personal judgement reduces initiative. In exams connect employee judgement blocked with initiative loss.
View question details Question 11 Easy Level 90
If a pandemic like situation was not estimated in the plan and sales stopped which limitation appears? A Planning ensures profit B Planning creates customers C Planning cannot accurately estimate all future events D Planning is a departmental name
Correct answer: C Every sudden event cannot be known in advance. In exams connect pandemic with uncertainty and external force.
View question details Question 12 Easy Level 90
When raw material was purchased according to plan but finished goods did not sell due to fashion change what lesson is learnt? A Planning makes fashion stable B Planning makes purchasing useless C Planning stops production D Planning does not give full safety in a dynamic environment
Correct answer: D Fashion can change quickly so the plan may become weak. In exams write fashion change as dynamic environment.
View question details Question 13 Easy Level 90
If employees get marks only for following the plan and not for new improvements which limitation is likely? A Planning may reduce creativity B Planning ensures all improvements C Planning removes cost D Planning is a government rule
Correct answer: A Giving importance only to compliance can reduce improvement suggestions. In exams treat improvement not rewarded as creativity loss.
View question details Question 14 Easy Level 90
If a company assumes interest rate will not change while planning but loans become costly which limitation is it? A Planning fixes interest rate B Planning is affected by economic changes C Planning opens bank D Planning removes cost
Correct answer: B Interest rate is an external economic factor. In exams write interest rate change as external economic change.
View question details Question 15 Easy Level 90
Which option shows that planning does not guarantee success? A Objectives became clear through planning B Departments coordinated through planning C The new app was not downloaded even after planning D Budget was fixed through planning
Correct answer: C A plan was made for the app but market response was not good. In exams write market failure after plan as no guarantee.
View question details Question 16 Easy Level 90
An institution applied the same training plan to all students but some students needed different help. Which limitation is this? A Planning makes all students same B Planning gives advertising C Planning prints money D Planning may be rigid toward individual needs
Correct answer: D The same plan can ignore different needs. In exams treat same plan for different needs as rigidity.
View question details Question 17 Easy Level 90
If entry of fake products in the market was not estimated while planning what may happen? A The sales estimates of the plan may become wrong B Planning will end fake products C Profit will always remain fixed D Customers will always increase
Correct answer: A Fake products can affect demand and price. In exams connect unexpected market entry with uncertainty.
View question details Question 18 Easy Level 90
When managers say changing the plan is against the rule even though the situation has changed what is shown? A Planning is communication B There is rigidity in planning C Planning is training D Planning is capital
Correct answer: B Not changing the plan even when the situation changes is rigidity. In exams connect no change allowed with rigidity.
View question details Question 19 Easy Level 90
If the wrong customer segment is chosen in a plan why can sales fall despite planning? A Because planning always gives correct information B Because planning fixes demand C Because a plan based on wrong information may not succeed D Because planning increases tax
Correct answer: C Wrong identification of customer segment weakens the plan. In exams connect wrong segment with faulty assumptions.
View question details Question 20 Easy Level 90
If customers move to a new alternative by the time the plan is implemented which weakness of planning is shown? A Planning is always fast B Planning gives salary C Planning gets production done D Planning may become slow and lose opportunity
Correct answer: D Delay in implementation can lose market opportunity. In exams write implementation delay as time limitation.
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