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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 3 · 25 questions

Practice questions

01When managers consider a plan so complete that they stop monitoring and correction, what risk arises?

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02If a product launch plan is based on many assumptions about weather, transport and advertising, what is the general risk?

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03If a plan assumes certain legal approval and the approval is delayed, what is the most correct effect?

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04If all branches must follow the same policy due to a plan though their markets are different, which limitation is shown?

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05A company fixed the same discount policy for the whole year but customer income and competition differed across regions. Which limitation of planning is shown?

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06If a long term plan was based on cheap loans but interest rates suddenly increased which limitation is most appropriate?

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07A digital platform made an investment plan using old user data but privacy rules changed and data use became limited. Which limitation is involved?

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08When so many approval levels are needed for planning that an opportunity is lost which limitation is clearest?

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09An institution assumed students would prefer only long lectures but they wanted short practice based lessons. What was the main weakness of the plan?

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10If managers treat a plan as final truth and make no alternative strategy then a market shock creates a crisis. What limitation is shown?

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11A company wrote every customer service reply in advance so employees could not solve unusual problems. Which limitation is clear?

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12A construction project assumed normal weather but work stopped due to a sudden cyclone. Which planning limitation is shown?

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13When employees focus only on planned targets instead of sharing new information received from customers what is the danger?

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14A company assumed the main source of raw material would remain safe but a political restriction stopped supply. Which limitation is related?

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15If only a fixed budget is approved in the plan and extra spending is suddenly needed for quality testing what limitation emerges?

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16A business used an expensive data model to forecast demand but a change in local festival timing made the sales estimate wrong. Which conclusion is correct?

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17If a substitute product suddenly enters the market and goods produced as per the old production plan sell slowly which limitation is identified?

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18When management says any suggestion not written in the plan will not be accepted what risk does the organisation face?

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19A food company planned packaging assuming health rules would remain stable but new labelling rules forced goods to be stopped. This is an example of which limitation?

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20In which situation does the detailed planning document itself become a barrier to decision making?

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21If an organisation assumes that past plan success will continue in future and reduces market research what is the danger?

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22A company submitted a tender assuming stable labour cost but a rise in minimum wages reduced profit. Which limitation appears?

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23If so many reports are made during planning that response to real market signals becomes late what is the problem?

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24A brand planned a campaign around a celebrity but that person's image suddenly became negative. Which limitation of planning will apply?

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25If employees implementing the plan find targets unrealistic and do not cooperate sincerely what is the most suitable limitation?

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