Muft Shiksha™ एक 100% Free Education Portal है 🇮🇳, जिसका उद्देश्य Class 9–12 के हर विद्यार्थी तक High-Quality Education को पूरी तरह मुफ्त पहुँचाना है। 🇮🇳 हम मानते हैं कि अच्छी शिक्षा किसी student की आर्थिक स्थिति पर निर्भर नहीं होनी चाहिए। 🇮🇳 हर विद्यार्थी को वही Quality Study Material, MCQs, Quizzes, Exam Preparation, Concept-Based Learning और Bilingual Support मिलना चाहिए, जो आमतौर पर महंगी Coaching या Premium Platforms में मिलता है। Muft Shiksha™ 🇮🇳 इसी सोच के साथ बनाया गया है
In this Class 12 Business Studies topic from the chapter Planning, students learn how a strategy provides a broad, future-oriented approach for achieving organisational objectives. They explore how managers select courses of action by considering business conditions, available resources, competition and changing circumstances. The topic also helps distinguish strategy from related planning elements such as policies, procedures, methods, rules, programmes and budgets, showing how each supports systematic decision-making and coordinated action.
Easy · Level 1 · 25 questions
TOPIC PRACTICE
Quiz this set
Up to 25 questions from this page. Select your focus, then start.
25 questions
Choose questions
Easy · Level 1View options
Budget
Strategy
Rule
Procedure
Easy · Level 1View options
Broad and long-term plan
Small daily rule
Method of operating machine
Only expense list
Easy · Level 1View options
Rule
Strategy
Method
Procedure
Easy · Level 1View options
Filling out only one form
Only office decoration
Long-term objectives and the use of resources
Only a minor rule
Easy · Level 1View options
Policy
Budget
Rule
Strategy
Easy · Level 1View options
To identify opportunities and threats
To choose the colour of chairs
To record employee leave
To record daily attendance
Easy · Level 1View options
Because resources are needed to achieve objectives
Because all rules have to be removed
Because work has to be stopped
Because files have to be hidden
Easy · Level 1View options
Rule
Procedure
Strategy
Method
Easy · Level 1View options
Strategy
Method
Rule
Procedure
Easy · Level 1View options
Only the cleaning staff level
Top management level
Only the customer level
Only the machine-operation level
Easy · Level 1View options
Writing minor instructions
Only hiding expenses
Giving the organisation broad direction to achieve its goals
Giving leave to employees
Easy · Level 1View options
Entry without pass prohibited
Check bill first then pay
Technique of cleaning machine
Price and distribution plan to enter rural market
Easy · Level 1View options
Strategy gives broad direction, while objectives state what is to be achieved.
Strategy is a rule and an objective is a method.
Strategy is a procedure and an objective is an expense.
Strategy is a prohibition and an objective is a command.
Easy · Level 1View options
Policy
Strategy
Budget
Rule
Easy · Level 1View options
To understand its internal position and capabilities
To choose the colour of a file
To decide daily meals
To record employees’ ages
Easy · Level 1View options
Procedure
Method
Strategy
Rule
Easy · Level 1View options
Rule
Procedure
Method
Strategy
Easy · Level 1View options
When competition in market is changing
When only a file has to be closed
When a chair has to be cleaned
When leave application has to be written
Easy · Level 1View options
Plan to enter a new market
Direction based on competitor price
Entry without identity card prohibited
Long-term expansion plan
Easy · Level 1View options
The external environment and available resources
Furniture only
Leave only
Colours only
Easy · Level 1View options
Strategy
Rule
Method
Procedure
Easy · Level 1View options
To shape its products and market approach to customer needs
To set the sequence for processing office forms
To replace all financial planning
To avoid setting business objectives
Easy · Level 1View options
Budget
Strategy
Rule
Method
Easy · Level 1View options
Procedure
Policy
Strategy
Rule
Easy · Level 1View options
A strategy is a broad plan for objectives; a rule prescribes or prohibits a specific action
A strategy is a prohibition; a rule is a financial target
A strategy is a budget; a rule is a method of production
A strategy is a single work step; a rule is a complete programme
Question 1EasyLevel 1
A company made a long-term market plan to take a mobile app to villages. This is a form of which plan?
Correct answer: B
The correct answer is Strategy because the plan sets a broad, long-term direction for reaching a particular market. Taking a mobile application to villages would involve choices about target users, distribution channels, promotion, partnerships, pricing and the use of resources. Such an integrated course of action is strategic in nature. A budget would present the financial estimates for this expansion, but the statement does not provide figures. A rule would impose a specific command or prohibition, and a procedure would list the ordered steps for completing one activity. The key clues are long-term planning, market expansion and an overall course of action; together they identify a strategy.
In planning strategy is considered what type of plan?
Correct answer: A
The direct answer is A: Broad and long-term plan. In planning, strategy is a major plan that gives the organisation an overall direction for achieving important objectives. It normally considers competition, resources, markets, and the future rather than one small daily task. The reasoning is: strategy looks at the whole organisation → it guides major choices → major choices usually need time → therefore strategy is broad and generally long-term. Option A is correct. Option B, a small daily rule, is narrow and routine; it may be a procedure or operational instruction, not a strategy. Option C, a method of operating a machine, is a technical procedure and applies to a particular task. Option D, an expense list, is closer to a budget or financial record and does not explain the organisation’s overall direction. Strategy does not mean an exact daily instruction; it provides the larger route. Memory cue: strategy is the big map, while rules and procedures are small instructions.
What is a broad plan formulated to deal with competitors and achieve an organisation’s objectives called?
Correct answer: B
The correct answer is B, Strategy. A strategy is a broad plan that guides an organisation’s response to competition and helps it pursue its objectives; a rule, method or procedure is more specific.
A strategy is generally concerned with which of the following?
Correct answer: C
The correct answer is C. A strategy sets a broad direction for achieving long-term objectives and involves deciding how resources will be used to pursue them.
A large plan to expand market by opening new branches is an example of what?
Correct answer: D
The direct answer is D: Strategy. Opening new branches to expand the market is a large decision about the future direction and growth of an organisation. It involves deciding where and how the business will grow, so it is a strategy rather than a small operating instruction. The reasoning is: the aim is market expansion → the plan covers a major organisational choice → it affects the future and may require substantial resources → therefore it is a strategy. Option D is correct. Option A, policy, is a general guideline that helps managers make repeated decisions, such as a policy on customer returns; it is not necessarily a complete expansion plan. Option B, budget, is a numerical statement of expected income and expenditure, whereas the question describes a growth direction. Option C, rule, is a strict instruction that must be followed in a particular situation and is much narrower. Thus the scale, future orientation, and growth purpose identify strategy. Memory cue: a big growth route is strategy; a money table is budget; a fixed instruction is rule.
Why does a company study the external environment when formulating a strategy?
Correct answer: A
The correct answer is A. Studying the external environment helps a company identify opportunities it may use and threats it may need to address while planning its strategy.
Why is allocating resources important when implementing a strategy?
Correct answer: A
The correct answer is A. A strategy can be carried out only when resources such as people, funds and materials are directed toward the activities needed to achieve the organisation’s objectives.
Which type of plan coordinates an organisation’s main objectives, course of action and resources?
Correct answer: C
The correct answer is C, strategy. A strategy is a comprehensive plan that sets a broad course of action for achieving objectives and involves allocating resources to carry it out.
To compete with low-price rivals, a company plans to distinguish itself through high quality. What type of plan is this?
Correct answer: A
The correct answer is A, strategy. Choosing quality as the basis for competing is a broad course of action that responds to the competitive environment.
Strategy is generally associated with decisions made at which level of management?
Correct answer: B
The correct answer is B, top management level. Strategies set broad organisational direction and allocate resources, so they are generally formulated by top management.
The direct answer is D: a price and distribution plan to enter a rural market. In business studies, strategy is a broad, long-term plan for achieving an important objective while considering the outside environment and competition. Entering a new customer market requires decisions about price, distribution and market approach, so option D is a strategy. Option A is a rule because it states what is allowed or prohibited. Option B is a procedure because it gives a sequence of steps: check first, then pay. Option C is a technique or method for doing a particular task, not a broad organizational plan. Option D is correct because it combines major market decisions to achieve market entry. Do not confuse a strategy with a routine instruction: strategy answers the large question of how an organization will reach an important goal. Memory cue: new market plus broad plan usually signals strategy.
A company develops a broad, coordinated plan for distributing and promoting a mobile app in villages. What type of plan is this?
Correct answer: B
The correct answer is B, strategy. The coordinated choices about distribution and promotion set a broad course of action for reaching the intended market.
Why does an organisation assess its strengths and weaknesses when formulating a strategy?
Correct answer: A
The correct answer is A. Strengths and weaknesses reveal an organisation’s internal capabilities and limitations, which help it choose a realistic course of action.
Which type of plan sets a broad course of action for gaining a competitive advantage?
Correct answer: C
The correct answer is C, strategy. It sets a broad course of action that can help an organisation use its resources and position itself to compete effectively.
A company chooses a new brand image and an online sales channel to reach young customers. Which type of plan do these choices form part of?
Correct answer: D
The correct answer is D, strategy. Decisions about brand positioning and sales channels shape how the company will reach and compete for its target customers.
In which situation does strategy become more important?
Correct answer: A
The direct answer is A: strategy becomes more important when competition in the market is changing. Strategy is a broad, long-term plan that helps an organisation decide where it wants to go and how it will compete. When competitors change their prices, products, technology, or customer service, an organisation cannot continue blindly with old decisions. It must study the environment, identify opportunities and threats, choose priorities, and use its resources in a suitable way. The reasoning is: changing competition creates uncertainty; uncertainty requires choices; coordinated choices about goals, resources, and competitive action form strategy. Option A is correct because changing market competition may require a new product, lower cost, better delivery, or a different customer group. Option B is wrong because closing a file is a small routine task, not a broad competitive decision. Option C is wrong because cleaning a chair is a physical activity with no strategic direction. Option D is wrong because writing a leave application is an individual administrative action, not a plan for competing in a market. Strategy does not mean performing every small task; it gives direction to major organisational decisions. Memory cue: changing competitors and changing markets call for strategic thinking.
The direct answer is C, entry without an identity card is prohibited. A strategy is a broad, long-term approach that helps an organisation compete, grow, or reach an important purpose. Option A is a strategy because entering a new market gives a broad direction for expansion. Option B is a strategy because choosing direction according to competitor prices concerns competitive positioning and decision-making. Option C is not a strategy: it is a rule because it says entry is prohibited without identification. A rule controls a particular behaviour; it does not describe the organisation’s broad route toward a long-term goal. Option D is a strategy because a long-term expansion plan gives future-oriented direction. The exact reasoning is therefore: A, B, and D guide future business choices; C merely restricts access. Do not select an option simply because it contains the word “plan”; examine whether it gives broad direction or imposes a rule.
Strategy links an organisation’s objectives with what?
Correct answer: A
The correct answer is A. A strategy considers the organisation’s objectives, the external environment and available resources when setting a broad course of action.
Why should a business understand customer preferences when formulating its strategy?
Correct answer: A
The correct answer is A. Knowing what customers prefer helps a business choose products and a market approach that are more likely to meet customer needs.
Which type of plan selects a course of action for achieving major objectives?
Correct answer: B
The correct answer is Strategy. A strategy is a broad course of action selected to achieve important objectives; a budget instead expresses plans in financial or other numerical terms.
Which statement correctly distinguishes a strategy from a rule?
Correct answer: A
The correct answer is A. A strategy provides a broad plan for achieving objectives, while a rule clearly states what must or must not be done in a particular situation.
Google Analytics helps us understand site usage. Google may send limited cookie-free signals before your choice. The Live Visitors widget operates independently of this analytics choice; see the privacy policy for its provider and fallback details. Essential site features work without analytics cookies. You can change your choice later in Privacy choices. Privacy policy