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Hard · Level 51 · planning,rigidity,customer-service,flexibility,Limitations of planning,Business Studies,Class 12 MCQView options
Planning may be rigid in complex situations
Planning always satisfies customers
Planning fixes market prices
Planning changes the financial year
Hard · Level 88 · planning,economic_environment,global_tensionView options
Planning trains employees
Planning is affected by external economic and political factors
Planning stabilises aircraft number
Planning always makes cost zero
Hard · Level 88 · planning,time_consuming,dynamic_environmentView options
Planning is only goal setting
Planning selects employees
Planning can be time consuming and difficult in a dynamic environment
Planning fixes market demand
Hard · Level 88 · planning,resistance,employee_participationView options
Planning always increases cooperation
Planning ends control
Planning stabilises demand
Planning may create resistance among employees
Hard · Level 88 · planning,assumptions,advertising_costView options
Planning may be affected by wrong economic assumptions
Planning makes advertising free
Planning makes customer data always correct
Planning is only a production function
Hard · Level 88 · planning,uncertainty,detailed_rulesView options
Planning can fully predetermine all situations
Planning cannot fully cover every future event
Planning ends the need for decisions
Planning makes external environment stable
Hard · Level 88 · planning,local_flexibility,rigidityView options
Planning always fulfils regional needs
Planning makes tax policy
Planning may reduce local initiative and flexibility
Planning automatically increases sales
Hard · Level 88 · planning,no_guarantee,market_acceptanceView options
Planning fixes customer needs
Planning is a sure guarantee of success
Planning removes competition
Planning does not guarantee market acceptance
Hard · Level 88 · planning,natural_uncertainty,distributionView options
Planning is affected by natural uncertainties
Planning makes transport cost zero
Planning builds roads
Planning is only a sales target
Hard · Level 88 · planning,false_security,monitoringView options
Control happens automatically through planning
Planning may create a false sense of security
Planning removes all errors
Planning reduces number of employees
Hard · Level 88 · planning,time_delay,technology_shiftView options
When planning clarifies goals
When planning connects departments
When technology changes in the market as soon as analysis is completed
When planning sets standards
Hard · Level 88 · planning,regional_market,rigidityView options
Planning removes local competition
Planning makes every region identical
Planning pays employees
Planning may be rigid toward regional markets
Hard · Level 88 · planning,forecasting,financial_riskView options
Planning may increase financial risk due to wrong forecasting
Planning always increases cash
Planning automatically gets bank loans
Planning is only a marketing function
Hard · Level 88 · planning,legal_uncertainty,investmentView options
Planning keeps machines always useful
Planning cannot fully predict legal change
Planning makes investment risk zero
Planning is employee selection
Hard · Level 88 · planning,departmental_rigidity,coordinationView options
Planning always increases coordination
Planning always increases profit
Planning may create rigid departmental behaviour
Planning stabilises market
Hard · Level 51 · planning,uncertainty,past-data,contingency,Limitations of planning,Business Studies,Class 12 MCQView options
Planning prevents all complaints
Planning removes product defects
Planning is only past data
Planning does not fully capture abnormal future events
Hard · Level 88 · planning,creativity,process_improvementView options
Employees know a better process but do not implement it because it is outside the written plan
Employees submit reports on time
Managers explain goals clearly
Departments share budgets
Hard · Level 88 · planning,public_opinion,boycottView options
Planning keeps brand image stable
Planning cannot fully control uncertain external public opinion
Planning keeps customers always loyal
Planning is only a sales department function
Hard · Level 51 · planning,cost-forecasting,insurance,uncertainty,Limitations of planning,Business Studies,Class 12 MCQView options
Planning removes insurance
Planning always reduces cost
Planning contains uncertainty in cost forecasting
Planning makes tax zero
Hard · Level 88 · planning,false_security,distribution_channelView options
Planning ensures fuel supply
Planning creates all channels automatically
Planning makes risk zero
Blind reliance on planning is risky
Question 1HardLevel 51
If a plan has a fixed script for customer service and complex customer cases remain unsolved, which limitation is shown?
Correct answer: A
The governing concept is the rigidity or lack of flexibility that may arise when procedures are followed mechanically. A fixed customer-service script can handle routine complaints consistently, but complex cases may require judgement, negotiation or a special solution. If employees are not allowed to adapt the script, they may fail to resolve genuine customer problems. Therefore, option A is correct: the plan becomes rigid in situations that were not fully anticipated. Option B is an absolute claim and is contradicted by the unresolved cases. Option C concerns pricing policy, while option D concerns accounting administration; neither follows from a service script. The lesson is that plans should guide action without preventing reasonable adaptation to unusual circumstances.
An education company launched a new course after a long approval process when the exam syllabus had already changed. This is a mixed example of which limitation?
Correct answer: C
Approval delay and syllabus change both weaken the plan. In exams connect dual clues with both limitations.
A company decided that all branches will keep the same price but a local competitor gave heavy discounts in one region. What limitation does the uniform price rule create?
Correct answer: D
Uniform price stops response to local competition. In exams connect uniform rule with rigidity.
A company made a call-centre plan based on the past average of complaints, but complaints multiplied due to a product defect. What is clear?
Correct answer: D
The governing concept is uncertainty and the limited ability of past data to predict an abnormal future event. The historical average provided a reasonable starting point for estimating ordinary call-centre demand, but it could not anticipate a sudden product defect. Once the defect appeared, complaints rose far above the normal level, making the original staffing and capacity plan inadequate. Therefore, option D is correct: planning cannot fully capture every unusual future development. Option A wrongly claims that planning prevents complaints, and option B confuses planning with quality control or defect correction. Option C is too extreme; planning may use past data but is not only past data. The example shows the need for monitoring and contingency arrangements.
If all costs were estimated in the plan but the insurance premium suddenly increased, which limitation appears?
Correct answer: C
The governing concept is that cost estimates are based on conditions expected at the time of planning, while external prices and charges may later change. An insurance premium is a business cost. If the premium rises unexpectedly, the actual cost becomes higher than the amount included in the original plan. This can disturb the budget, reduce expected profit and require the organisation to revise its expenditure decisions. Therefore, option C is correct: cost forecasting contains uncertainty. Option A is false because planning does not remove the need for insurance. Option B is not guaranteed, and option D has no connection with a premium increase. The example shows why managers should use reasonable estimates, review budgets and keep a contingency margin for unexpected changes.
A business did not develop alternative distribution channels after seeing success in the main plan. Suddenly a fuel crisis stopped the old channel. What is the most suitable conclusion?
Correct answer: D
Blind reliance on a successful plan can stop alternatives. In exams write no alternative channel as false security.
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