Planning process

The correct answer is A. A useful objective should be specific and measurable, and where performance is to be reviewed, it should also be time-bound. Without a deadline, managers cannot determine when the expected result should be achieved or compare progress with an appropriate schedule. This makes follow-up, control and timely corrective action difficult. A clear objective alone tells what is to be achieved, but not by when. The absence of a deadline does not strengthen planning premises, create alternatives automatically or eliminate implementation. Therefore, the main difficulty is measuring progress and judging performance on the basis of time.

What to achieve is related to objectives. In exams, treat what to achieve as objective setting.

Testing assumptions strengthens planning. In exams, understand premises testing as advanced planning.

Better alternatives may come from diverse sources. In exams, connect participative search with alternatives stage.

Policy fit is an important evaluation criterion. In exams, treat profitable but unsuitable option as an evaluation issue.

Training makes implementation practical. In exams, connect employee capability with the action stage.

The correct answer is A. Follow-up involves observing actual performance, comparing it with the planned standard, identifying the size and cause of any deviation, and taking suitable corrective action. Merely recording or reporting that performance differs from the target does not restore control or improve the plan. Managers may need to revise methods, allocate resources differently, change schedules, or reconsider assumptions, depending on the cause. Objectives remain necessary because they provide the standard for comparison; premises are not always wrong, and alternatives do not simply end. Thus, follow-up is incomplete when review is not followed by appropriate correction.

Market understanding makes objectives better. In exams, connect customer need with objective quality.

Too optimistic assumptions can make planning unrealistic. In exams, treat realism of premises as important.

Cash flow is linked with financial feasibility. In exams, check liquidity and cost in evaluation.

Good selection does not see only immediate profit. In exams, include long-term impact in selection.

Clear communication and coordination are necessary in implementation. In exams, treat different instructions as an implementation problem.

The correct answer is A. Follow-up should be periodic or continuous enough to reveal deviations while corrective action is still possible. If progress is checked only at the end of the year, a wrong method, cost overrun, missed sales opportunity or resource problem may continue for many months. By the time the deviation is discovered, the organisation may have lost time, money and the chance to achieve the original target. Periodic review does not automatically clarify objectives, make premises correct or increase alternatives. It provides timely information for control and correction. Therefore, delayed checking increases the risk that mistakes cannot be corrected in time.

The direct answer is C, performance should be checked through multiple standards. Achieving a sales or profit target is important, but it is not the whole picture. If customer satisfaction falls, the result shows that one measure improved while another important outcome worsened. Follow-up should therefore review financial results together with customer satisfaction, quality, complaints, employee effects and other relevant standards. Option C is correct because balanced review gives a fuller and fairer judgment of performance. Option A is too extreme: the target may still have been useful, though it may need revision or additional standards. Option B is wrong because profit planning is not useless; profit is one valid measure among several. Option D is wrong because this situation proves that follow-up is necessary. Memory cue: never judge a plan by one number alone.

Clear objectives and realistic premises create better alternatives. In exams, see the impact of early steps on later steps.

Social impact can also be checked in evaluation. In exams, treat legality and acceptability separately.

Resources are needed along with authority. In exams, remember authority, responsibility and resources in implementation.

Repeated deviation indicates a root cause. In exams, write deeper correction for repeated deviation.

Department-wise targets clarify action. In exams, connect converting broad objectives into actionable plans with implementation.

Opportunity cost can be part of alternative evaluation. In exams, check hidden cost also in evaluation.

Lack of common premises creates inconsistent planning. In exams, connect shared assumptions with coordination.

Even the best plan needs review in changing conditions. In exams, do not consider planning process finished at selection.

Decision also depends on quality of alternatives. In exams, understand the importance of every stage.

The correct answer is B. Planning is a systematic and logical process rather than a single budgeting activity. It begins with deciding objectives, because the desired results provide direction. Managers then develop premises about future conditions, identify possible alternatives, evaluate them against relevant criteria, select the most suitable course, implement the chosen plan and conduct follow-up. Follow-up compares actual performance with standards and supports correction and learning, so it completes a connected cycle. Budgeting may be one type of plan or a planning tool, but it does not represent the whole process. Implementation is essential because an unexecuted plan cannot produce results.

When premises change, even a successful plan needs review. In exams, connect follow-up with feedback and future adjustment.