Question 1 Expert Level 88
The government suddenly made environmental standards stricter and the old production plan became unsuitable. This is an example of what? A Effect of external legal environment B Internal wage policy C Office discipline D Employee motivation
Correct answer: A Legal changes are not under the company's control. In exams, write government policy as an external limitation.
View question details Question 2 Expert Level 88
If managers apply a previously successful plan in a new market without modification, what is the main risk? A योजना के उद्देश्य स्वतः पूरे हो जाएंगे B नए बाजार की वास्तविक परिस्थितियों और आवश्यकताओं की उपेक्षा हो सकती है C योजना को लागू करने की लागत शून्य हो जाएगी D नए बाजार में ग्राहकों का व्यवहार पहले जैसा ही रहेगा
Correct answer: B Option B is correct. The success of a plan depends on market conditions, customer behaviour, competition, and available resources. Applying an old plan in a new market without modification may ignore local needs and changed conditions. Option D is incorrect because customer behaviour need not be the same in a new market. Exam tip: For limitations of planning, remember that plans must be revised according to changes in the business environment.
View question details Question 3 Expert Level 88
If a plan gives sales targets beyond employees' capacity, which problem is most likely? A Targets will become easy B Market will remain stable C Implementation may become impractical D Advertising will stop
Correct answer: C Not understanding real capacity makes implementation difficult. In exams, check the match between resources and targets.
View question details Question 4 Expert Level 88
When a plan remains only a written document and no real action happens, which conclusion is correct? A The value of planning is proved by implementation B Planning always implements itself C Planning has no objectives D Planning controls the market
Correct answer: A Without implementation, a plan remains a paper exercise. In exams, keep the difference between planning and action.
View question details Question 5 Expert Level 88
If managers keep rejecting new customer suggestions because of an existing plan, which limitation is shown? A Benefit of coordination B Objective setting C Reduction in creativity and adaptability D Financial control
Correct answer: C Ignoring customer suggestions can make a plan rigid. In exams, remember creativity and flexibility together.
View question details Question 6 Expert Level 88
If a plan is too detailed and even a minor change becomes expensive, which combined effect is shown? A Only clarity of objective B Only employee satisfaction C Only market control D Limitation of both rigidity and cost
Correct answer: D A very detailed plan can make change difficult and costly. In exams, identifying combined limitations is important.
View question details Question 7 Expert Level 88
Due to economic slowdown, buyers' purchasing power fell and sales targets remained unfulfilled. This relates to which limitation? A External economic environment affects planning B Staffing is always correct C Writing objectives is wrong D Planning has no forecasting
Correct answer: A Economic slowdown is an external factor and affects demand. In exams, connect purchasing power with economic environment.
View question details Question 8 Expert Level 88
If new technology reduces production cost quickly but the company remains tied to the old plan, what loss will occur? A Machines will stop automatically B Cost saving and competitive advantage may be missed C Law will change automatically D Employees will stop taking salary
Correct answer: B Sticking to an old plan can block new technological benefits. In exams, link technological change with flexibility.
View question details Question 9 Expert Level 88
If an organisation becomes so dependent on planning that managers do not take situational decisions, which limitation appears? A Benefit of budget B Ease of coordination C Reduction in managerial judgment D Stability of objective
Correct answer: C Overdependence on planning can reduce sound judgment. In exams, write managerial decision skill as important.
View question details Question 10 Expert Level 88
If a plan limits employees to only following orders, what may be the long-term effect on the organisation? A Innovation and problem-solving ability may decrease B Market risk will end C All employees will become owners D Profit will become certain
Correct answer: A Order-based working style reduces initiative. In exams, remember the creative role of human resources.
View question details Question 11 Expert Level 88
If an export plan is made assuming stable policy in a foreign country and import duty suddenly rises there, what is clear? A Employee training is not necessary B Planning controls foreign policy C International legal-economic changes can affect planning D Planning has no market study
Correct answer: C Foreign duty is an external factor. In exams, include international environment in limitations of planning.
View question details Question 12 Expert Level 88
When the planning process becomes so long that the opportunity deadline passes, what is the main limitation? A Planning creates rigidity B Planning does not guarantee success C Planning involves high cost D Planning is a time-consuming process
Correct answer: D The correct answer is that planning is a time-consuming process. Collecting information, analysing alternatives, and obtaining approvals may take considerable time. If the opportunity deadline passes during this process, the organisation may lose the benefit of that opportunity. High cost refers to monetary expense, whereas the issue here is primarily delay. Exam tip: words such as “deadline”, “delay”, or “missed opportunity” usually point to planning being time-consuming.
View question details Question 13 Expert Level 88
If a plan has risk analysis, yet an unexpected earthquake stops the project, which statement is correct? A Planning cannot remove all natural risks B Planning cannot have risk analysis C The plan was always wrong D Natural events are internal factors
Correct answer: A A natural disaster can be external and uncontrollable. In exams, keep the difference between reducing risk and removing risk.
View question details Question 14 Expert Level 88
If a plan focuses only on quantitative targets and ignores customer satisfaction, what is the risk? A All customers will remain permanent B Ignoring qualitative aspects can weaken the plan C Cost will always be zero D Objectives will change automatically
Correct answer: B A plan based only on numbers can ignore customer experience. In exams, write the importance of qualitative factors.
View question details Question 15 Expert Level 88
A company did not estimate sudden viral negative reaction and its promotion plan failed. This is an example of which limitation? A Proper use of resources B Clarity of objective C Uncertainty of public response D Improvement in coordination
Correct answer: C Public response is not fully predictable. In exams, write social environment as an uncertain external factor.
View question details Question 16 Expert Level 88
If implementing employees were not included and they resist the plan, which limitation is shown? A Stability of market B Guarantee of profit C Rate of tax D Implementation becoming difficult due to human resistance
Correct answer: D Lack of participation can increase resistance. In exams, write human behaviour as a practical limitation of planning.
View question details Question 17 Expert Level 88
If a plan considers the machines available to the company but ignores their frequent breakdowns, what problem will occur? A Wrong assessment of resource capacity can make the plan impractical B Machines will always remain new C Employees will be automatically trained D Demand will become stable
Correct answer: A Availability and actual usable capacity can be different. In exams, check both quality and capacity of resources.
View question details Question 18 Expert Level 88
If the market survey sample is biased and the plan is based on it, what risk will arise? A The plan will become more scientific B Decisions may be based on wrong information C Objectives will be achieved automatically D Cost will always reduce
Correct answer: B Biased information gives wrong forecasting. In exams, link quality of information with success of planning.
View question details Question 19 Expert Level 88
When a plan has no flexibility for regulatory changes in the industry, which risk increases? A All rules will stop automatically B Managers will stop taking decisions C Compliance failure and need for plan revision D Customers will always be satisfied
Correct answer: C Regulatory changes can force revision of plans. In exams, treat legal environment as an external limitation.
View question details Question 20 Expert Level 88
If a company's plan assumes timely supplier delivery and the supplier repeatedly delays, which conclusion is correct? A Supplier behaviour can create external uncertainty B Purchasing is not included in planning C Profit remains certain D Employees are suppliers
Correct answer: A Supplier delay can disturb the plan's timeline. In exams, write supply side as an external limitation.
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