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Subjects

Business Studies

Limitations of planning

In Class 12 Business Studies, this topic explains why planning, although essential for setting objectives and guiding business activities, cannot guarantee success. Students learn how planning may create rigidity, involve significant time and cost, delay action, and become ineffective when circumstances change rapidly. The topic also highlights that plans are based on assumptions about the future and may not work as expected in a dynamic business environment. Understanding these limitations helps students evaluate planning realistically while studying the broader chapter on Planning.

Hard · Level 2 · 25 questions

Practice questions

01When a plan tries to write detailed rules for every situation but a new situation is still missed what is proved?

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02A company stopped employees from giving local discounts outside the plan and regional sales fell. Which limitation will be identified?

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03If a product fails despite detailed planning because customers did not consider the problem important which conclusion is correct?

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04A business made a distribution plan assuming normal monsoon but a landslide closed the route. Which limitation is this an example of?

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05When managers reduce monitoring by assuming the plan will succeed and errors increase which limitation appears?

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06In which situation does the time spent on planning directly become a strategic loss?

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07A 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?

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08If a plan is based only on optimistic sales estimates and a cash crisis occurs what is the main problem?

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09A factory ignored the possibility of new rules and invested in an old machine which was later banned. Which limitation does this show?

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10If departments keep protecting their planned targets and do not solve a new collective problem which limitation emerges?

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11A company made a call-centre plan based on the past average of complaints, but complaints multiplied due to a product defect. What is clear?

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12Which example gives the strongest sign of reduced creativity as a limitation of planning?

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13A company considered the chance of a social media crisis very low and made no response plan. A sudden boycott campaign began. What is this related to?

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14If all costs were estimated in the plan but the insurance premium suddenly increased, which limitation appears?

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15A 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?

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16Which option includes both time and cost as limitations of planning?

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17A food company made a product plan but demand fell due to a sudden health related rumour. Which limitation of planning is more relevant?

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18If planning asks for so much information that decision makers miss the important signals what is the problem?

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19An organisation made a rule that no employee will experiment outside the plan. What is the long term danger?

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20A company decided that the plan will not change because it maintains discipline but sudden market signals were ignored. Which balance is missing?

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21A construction company made a long term estimate of material prices but geopolitical tension made imports costly. Which limitation is shown?

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22If the sales team is asked to work only on a fixed customer list and new potential customers are missed which limitation is it?

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23A company treated seniors' opinions as final in planning and ignored young employees' digital ideas. Which limitation is most suitable?

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24If a plan is too detailed and employees keep waiting for permission instead of deciding in changing situations what may happen?

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25Which statement describes the limitations of planning in the most balanced way?

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