CLASS XII: CHAPTER 4 QUESTION BANK
Planning | 10 Practice Sets (CBSE 2026-27)
📌 General Instructions for All Sets:
- Maximum Marks: 25 | Time Allowed: 45 Minutes
- Questions 1-5 are objective type carrying 1 mark each (MCQs & Assertion-Reasoning).
- Questions 6-7 are short answer type carrying 3 marks each (30-40 words).
- Questions 8-9 are short answer type carrying 4 marks each (50-80 words).
- Question 10 is a long answer type carrying 6 marks (100-150 words).
- Strictly adhere to the CBSE Competency/Case-Based format.
📄 PRACTICE PAPER - SET 1 (Level: Easy - Fundamental Concepts)
SECTION A (1 Mark Each)
1. Which function of management is known as the primary or basic function?
[Case-Based] The management of 'Alpha Ltd.' decides in advance what is to be done, how it is to be done, and who is to do it.
2. This refers to which concept?[Case-Based] A manager anticipates a drop in winter sales and creates a promotional discount scheme three months in advance to tackle it.
3. Which feature of planning is highlighted here?4. Assertion (A): Planning is an all-pervasive function.
Reason (R): It is required at all levels of management and in all departments of the organization.
Reason (R): It is required at all levels of management and in all departments of the organization.
5. Assertion (A): Planning involves decision making.
Reason (R): Planning essentially involves choosing the best alternative among various available courses of action.
Reason (R): Planning essentially involves choosing the best alternative among various available courses of action.
SECTION B (3 Marks Each)
6. State any three features of Planning.
[Case-Based] A company wants to increase its market share from 10% to 20% in the next financial year.
7. Identify the step of the planning process highlighted here and briefly explain the very next step to be followed.
SECTION C (4 Marks Each)
8. Explain how planning 'reduces the risk of uncertainty' and 'provides direction'.
[Case-Based] At 'Zeta Corp', the top management formulated a master plan for the year. However, the middle managers were strictly told not to deviate from this plan even when the market conditions changed drastically, leading to huge losses.
9. Identify and explain the limitation of planning discussed in the given case.
SECTION D (6 Marks Each)
[Case-Based] 'SuperFast Logistics' wanted to expand its operations. The CEO first established a clear target of opening 50 new hubs across India. Next, he made certain assumptions about the future, like the expected fuel prices and government tax rates. After this, his team listed out three different ways to expand: buying own trucks, leasing trucks, or partnering with local vendors. They carefully analyzed the cost and profitability of each option and finally selected the 'leasing trucks' option as it required the least capital investment.
10. By quoting lines from the paragraph, identify and explain the first **four steps** of the planning process followed by the CEO.
📄 PRACTICE PAPER - SET 2 (Level: Moderate - Application & Analysis)
SECTION A (1 Mark Each)
1. Which type of plan is usually expressed in numerical terms?
[Case-Based] "No smoking in the factory premises under any circumstances."
2. This statement is an example of which type of plan?[Case-Based] A manager spends weeks gathering data and holding meetings to finalize a plan, but by the time it is ready, the market opportunity is lost.
3. Which limitation of planning is highlighted here?4. Assertion (A): Planning promotes innovative ideas.
Reason (R): Since planning is the first function of management, new ideas can take the shape of concrete plans, encouraging managers to think differently.
Reason (R): Since planning is the first function of management, new ideas can take the shape of concrete plans, encouraging managers to think differently.
5. Assertion (A): A method provides the prescribed ways or manner in which a task has to be performed.
Reason (R): It deals with a task comprising of one step of a procedure and specifies how this step is to be performed.
Reason (R): It deals with a task comprising of one step of a procedure and specifies how this step is to be performed.
SECTION B (3 Marks Each)
6. Differentiate between an 'Objective' and a 'Strategy'.
[Case-Based] 'FreshFoods Ltd.' has a strict guideline that it will only hire candidates with a minimum of 2 years of experience.
7. Identify the type of plan here. Explain it briefly.
SECTION C (4 Marks Each)
8. "Planning does not work in a dynamic environment." Explain this limitation with a suitable example.
[Case-Based] A garments company decides to launch a new winter collection. They define the exact chronological sequence of steps to be followed from procuring wool to stitching the final sweaters.
9. Identify the type of plan discussed. Differentiate it from a 'Method' on any three bases.
SECTION D (6 Marks Each)
[Case-Based] 'TechnoSoft' is a major IT firm. The CEO laid out a brilliant 5-year plan to double the revenue. To achieve this, extensive research was conducted, and millions of rupees were spent on boardroom meetings and expert consultations. However, when the plan was rolled out, the middle-level managers were forced to blindly execute it. They were not allowed to make any changes or use their own innovative ideas when they faced practical problems on the ground. Despite following the plan perfectly, a sudden change in government IT policy made their software obsolete, and the company failed to meet its targets.
10. By quoting lines from the paragraph, identify and explain the **three limitations** of planning suffered by 'TechnoSoft'.
📄 PRACTICE PAPER - SET 3 (Level: Moderate-High - Nuanced Competency)
SECTION A (1 Mark Each)
1. Which step of the planning process involves making assumptions about the future?
[Case-Based] An electronics company provides a detailed step-by-step manual to its employees on how to safely assemble a television set on the conveyor belt.
2. This manual is an example of a:[Case-Based] Just because a plan worked flawlessly last year, a manager blindly relies on it this year, only to fail miserably due to new market trends.
3. Which limitation is highlighted here?4. Assertion (A): Planning is a mental exercise.
Reason (R): It requires logical and systematic thinking, foresight, and intelligent imagination rather than guesswork.
Reason (R): It requires logical and systematic thinking, foresight, and intelligent imagination rather than guesswork.
5. Assertion (A): A 'Programme' is a single-use plan.
Reason (R): Programmes are detailed statements about a project outlining objectives, policies, procedures, and rules required to implement a specific course of action.
Reason (R): Programmes are detailed statements about a project outlining objectives, policies, procedures, and rules required to implement a specific course of action.
SECTION B (3 Marks Each)
6. Differentiate between 'Single-use Plan' and 'Standing Plan' with one example of each.
[Case-Based] The management of a school prepared a document outlining the exact cash inflows and outflows expected for the annual sports day.
7. Identify the type of plan. State two of its characteristics.
SECTION C (4 Marks Each)
8. Explain how planning 'reduces overlapping and wasteful activities' and 'establishes standards for controlling'.
[Case-Based] 'Global Motors' has a general response to all customer queries: "We do not offer cash refunds, only store credit." However, the exact steps a customer must take to apply for this store credit are clearly written on the back of the receipt.
9. Identify the two types of plans discussed here and differentiate between them.
SECTION D (6 Marks Each)
[Case-Based] After evaluating various alternative courses of action, the Board of Directors of 'StarCements' finally chose to upgrade their existing factory machinery instead of buying a new factory. Once the decision was made, they drafted a detailed sequence of activities indicating who will do what and by when, to implement this upgrade. Finally, the CEO formed a committee to keep a strict eye on the daily operations to ensure that the machinery was actually being upgraded according to the schedule.
10. By quoting lines from the paragraph, identify and explain the **last three steps** of the planning process highlighted in the case.
📄 PRACTICE PAPER - SET 4 (Level: Hard - Analytical Competency)
SECTION A (1 Mark Each)
1. Which of the following plans provides a broad contour (framework) of an organization's business, defining its future direction?
[Case-Based] A sales manager realizes his team is highly demotivated because top management strictly dictates every move they make through rigid plans, leaving no room for their own ideas.
2. Which limitation of planning is evident?3. Comprehensive plans prepared to tackle a specific, non-recurring project (like building a new bridge) are known as:
4. Assertion (A): Planning is a continuous process.
Reason (R): Plans are prepared for a specific period of time. At the end of that period, there is a need for a new plan to be drawn on the basis of new requirements and future conditions.
Reason (R): Plans are prepared for a specific period of time. At the end of that period, there is a need for a new plan to be drawn on the basis of new requirements and future conditions.
5. Assertion (A): Policies are specific statements that tell what is to be done and what is not to be done, allowing no flexibility.
Reason (R): Rules are general guidelines that guide thinking or channelize energies towards a particular direction.
Reason (R): Rules are general guidelines that guide thinking or channelize energies towards a particular direction.
SECTION B (3 Marks Each)
6. Why is planning called a 'futuristic' function? Explain briefly.
[Case-Based] 'Max Retail' strictly demands that all suppliers must be paid within 30 days of invoice receipt. However, the exact way to process the invoice, verify the goods, and issue the cheque is determined by the accounts department.
7. Identify the two types of plans highlighted here.
SECTION C (4 Marks Each)
8. Explain any four limitations of planning that are internal to the organization.
[Case-Based] Before launching a new toothpaste, 'DentCare' management assumed that the raw material prices would remain stable and the tax rate would not change. Based on this, they crafted their entire sales plan.
9. Identify the step of the planning process highlighted. Why is this step considered the foundation of a successful plan?
SECTION D (6 Marks Each)
[Case-Based] 'Urban Builders' had a fantastic reputation. The CEO set a goal to construct 10 eco-friendly skyscrapers. He decided that the company would only use 100% recycled steel for these buildings to maintain their green image. To ensure no accidents occurred during construction, a strict mandate was passed: "Any worker found without a safety helmet will be fined ₹1000 instantly." Furthermore, the finance manager prepared a precise statement allocating ₹50 Crores for the entire construction project.
10. By quoting lines from the paragraph, identify and explain the **four different types of plans** formulated by the management of 'Urban Builders'.
📄 PRACTICE PAPER - SET 5 (Level: Advanced - Evaluation Competency)
SECTION A (1 Mark Each)
[Case-Based] A mobile company drafts a comprehensive plan detailing its pricing, advertising, and distribution channels to defeat a rival's upcoming product launch.
1. This comprehensive plan is known as:2. Which of the following is an example of a 'Standing Plan'?
[Case-Based] "Planning forces managers to look ahead, anticipate changes, consider the impact of changes, and develop appropriate responses."
3. Which importance of planning is highlighted here?4. Assertion (A): Planning is pervasive, meaning it is exclusively the job of the top management.
Reason (R): Middle and lower-level managers simply execute the plans formulated by the top management without any planning of their own.
Reason (R): Middle and lower-level managers simply execute the plans formulated by the top management without any planning of their own.
5. Assertion (A): Identifying alternative courses of action is a crucial step in planning.
Reason (R): If there is only one possible way to achieve an objective, there is no need for planning as there is no choice to be made.
Reason (R): If there is only one possible way to achieve an objective, there is no need for planning as there is no choice to be made.
SECTION B (3 Marks Each)
6. State the difference between 'Policies' and 'Rules'.
[Case-Based] 'BrightVision' was looking to increase its brand visibility. The marketing head listed options: TV ads, social media campaigns, or sponsoring a cricket match. After calculating the cost and reach of each, he finalized the social media campaign.
7. Identify the two steps of the planning process discussed here.
SECTION C (4 Marks Each)
8. Explain the feature "Planning focuses on achieving objectives" and "Planning involves decision making".
[Case-Based] 'SuperMart' planned to open 10 new branches. They spent millions hiring consultants to draft the perfect expansion plan. However, a sudden global recession hit, and consumer purchasing power dropped to zero. SuperMart had to abandon its expensive plan.
9. Identify and explain the two limitations of planning highlighted in this scenario.
SECTION D (6 Marks Each)
[Case-Based] 'NextGen Autos' decided to manufacture flying cars. The CEO first formulated a general framework stating that the company would never compromise on passenger safety and would only use locally sourced materials. He then laid out a detailed blueprint encompassing the entire project, including the objectives, policies, procedures, and the specific rules required to build the first prototype. To ensure the workers assembled the engine quickly and efficiently without wasting effort, a specific standard way of performing the assembly task was established and taught to all engineers.
10. By quoting lines from the paragraph, identify and explain the **three types of plans** utilized by the management of 'NextGen Autos'.
📄 PRACTICE PAPER - SET 6 (Level: Expert - Complex Case Studies)
SECTION A (1 Mark Each)
[Case-Based] A manager checks if the actual production matches the planned target at the end of the month.
1. This highlights which importance of planning?2. Which step in the planning process requires the manager to carefully weigh the pros and cons, costs, and benefits of each option?
[Case-Based] A school explicitly states, "Admissions will be granted purely on the basis of merit marks obtained in the entrance test."
3. This is an example of a:4. Assertion (A): Planning cannot foresee everything.
Reason (R): The business environment is highly dynamic, and sudden changes in economic policies or technology can render well-thought-out plans ineffective.
Reason (R): The business environment is highly dynamic, and sudden changes in economic policies or technology can render well-thought-out plans ineffective.
5. Assertion (A): 'Method' is a flexible plan that allows employees to work according to their own convenience.
Reason (R): Methods prescribe the exact, standardized way in which a particular step of a procedure has to be performed to save time and effort.
Reason (R): Methods prescribe the exact, standardized way in which a particular step of a procedure has to be performed to save time and effort.
SECTION B (3 Marks Each)
6. "Planning reduces overlapping and wasteful activities." Explain this statement.
[Case-Based] The management of 'Beta Corp' spent a hefty amount of money to hire international consultants to draft a 5-year plan. However, the cost of drafting the plan exceeded the profits gained from implementing it.
7. Which limitation of planning is highlighted? Explain it briefly.
SECTION C (4 Marks Each)
8. Explain the first three steps of the planning process.
[Case-Based] 'Elite Furnitures' strictly follows a chronological sequence for purchasing wood: 1) Identify requirement, 2) Float tenders, 3) Select vendor, 4) Place order. However, the management also explicitly states that "No wood will be purchased from illegal forest loggers."
9. Identify and differentiate between the two types of plans highlighted in this case.
SECTION D (6 Marks Each)
[Case-Based] Ms. Kavita, the CEO of an event management company, was furious. Her team had organized a massive concert, but it was a disaster. The catering team arrived late, the sound engineers set up the wrong speakers, and the decorators were completely unaware of the theme. The entire team lacked coordination, and efforts were duplicated because no one knew what the other was doing. Realizing her mistake, Kavita sat down the next day to draft a master plan for their upcoming event, clearly defining the exact end results to be achieved and ensuring that every department knew exactly what they had to do.
10. By quoting lines from the paragraph, explain any **three points of importance** of planning that Kavita realized were missing in her organization.
📄 PRACTICE PAPER - SET 7 (Level: Expert - Integrated Concepts)
SECTION A (1 Mark Each)
[Case-Based] 'SunTech' formulates a plan for the year. After 6 months, a new competitor enters the market with disruptive technology. The manager of SunTech modifies the original plan to counter the threat.
1. This proves that planning is:2. A statement of expected results expressed in numerical terms for a definite period of time is a:
3. Assertion (A): Once a plan is formulated, the manager's job is over.
Reason (R): The final step of the planning process is 'Follow-up action', which involves monitoring the plan to ensure activities are performed according to schedule.
Reason (R): The final step of the planning process is 'Follow-up action', which involves monitoring the plan to ensure activities are performed according to schedule.
4. Assertion (A): Top management formulates policies, and lower management strictly executes them without question.
Reason (R): Planning creates rigidity as managers at middle and lower levels are not allowed to deviate from plans or act on their own.
Reason (R): Planning creates rigidity as managers at middle and lower levels are not allowed to deviate from plans or act on their own.
5. Which type of plan is the most rigid and allows no scope for discretion?
SECTION B (3 Marks Each)
6. Differentiate between 'Objectives' and 'Policies' as types of plans.
[Case-Based] A manager drafted a comprehensive plan defining the company's long-term objectives, adopting a specific course of action, and allocating necessary resources to achieve those objectives.
7. Identify the type of plan. State its primary purpose.
SECTION C (4 Marks Each)
8. Explain the last four steps of the planning process.
[Case-Based] 'FreshJuices Ltd.' has a clear goal to capture 30% of the rural market. To do this, they decided to hire only local village youths as distributors. They clearly communicated this decision to all HR managers to guide their recruitment efforts.
9. Identify the two types of plans highlighted. Differentiate between them.
SECTION D (6 Marks Each)
[Case-Based] Mr. Sharma started a travel agency. He was highly successful in his first year. In the second year, assuming that the market would behave exactly as it did before, he simply copied the previous year's plan. However, a sudden pandemic hit, and travel was banned globally. Despite the crisis, Mr. Sharma refused to change his pre-booked hotel packages because the "plan was already locked," leading to massive losses. Furthermore, because he had spent months analyzing data to copy the old plan, he had no time left to formulate a backup digital-tourism strategy.
10. By quoting lines from the paragraph, identify and explain the **three limitations** of planning highlighted in the case.
📄 PRACTICE PAPER - SET 8 (Level: Advanced Board Mock 1)
SECTION A (1 Mark Each)
1. Which of the following is NOT a feature of Planning?
[Case-Based] "We will grant credit only to customers who have a credit score above 750."
2. This represents a:3. Assertion (A): Planning promotes innovative ideas.
Reason (R): It forces managers to think out of the box, discover new ideas, and take the shape of concrete plans to solve future problems.
Reason (R): It forces managers to think out of the box, discover new ideas, and take the shape of concrete plans to solve future problems.
4. Assertion (A): Single-use plans are used repeatedly over a long period.
Reason (R): Single-use plans are developed for a one-time event or project and are discarded once the objective is achieved.
Reason (R): Single-use plans are developed for a one-time event or project and are discarded once the objective is achieved.
5. Identifying alternative courses of action is followed immediately by which step?
SECTION B (3 Marks Each)
6. "Planning involves decision making." Explain this feature.
[Case-Based] A factory manager mandates that "Anyone operating the heavy press machine must wear steel-toed boots."
7. Identify the type of plan. Why is it necessary to have such plans in an organization?
SECTION C (4 Marks Each)
8. Differentiate between 'Procedure' and 'Method'.
9. Explain how planning 'provides direction' and 'promotes innovative ideas'.
SECTION D (6 Marks Each)
[Case-Based] 'Alpha Electronics' wanted to launch a new smartwatch. The CEO established a clear goal: "Sell 1 lakh units in the first quarter." The marketing team then forecasted the expected inflation rates and competitor pricing for the upcoming quarter to build a solid foundation. After brainstorming, they listed multiple ways to launch: hiring a celebrity ambassador, launching an aggressive online campaign, or giving huge retailer discounts. They carefully analyzed the ROI (Return on Investment) of each option.
10. By quoting lines from the paragraph, identify and explain the **first four steps** of the planning process executed by 'Alpha Electronics'.
📄 PRACTICE PAPER - SET 9 (Level: Advanced Board Mock 2)
SECTION A (1 Mark Each)
[Case-Based] Preparing a sales forecast for the next year based on current market trends is a part of which step of the planning process?
1.
2. Which plan provides the exact manner in which a specific task has to be performed?
3. Assertion (A): Planning reduces the risk of uncertainty.
Reason (R): By deciding in advance the tasks to be performed, planning helps managers to anticipate changes and develop appropriate responses to them.
Reason (R): By deciding in advance the tasks to be performed, planning helps managers to anticipate changes and develop appropriate responses to them.
4. Assertion (A): A budget is a standing plan.
Reason (R): A budget is a statement of expected results expressed in numerical terms for a specific period, usually prepared fresh for every new period.
Reason (R): A budget is a statement of expected results expressed in numerical terms for a specific period, usually prepared fresh for every new period.
5. A comprehensive plan detailing the exact objectives, policies, procedures, and rules for a massive factory expansion is a:
SECTION B (3 Marks Each)
6. "Planning is a mental exercise." Explain this feature.
[Case-Based] A manager successfully formulated a plan but forgot to monitor whether the subordinates were actually following the schedule on the factory floor. The target was missed.
7. Which crucial step of the planning process did the manager ignore? Explain its importance.
SECTION C (4 Marks Each)
8. Briefly explain the following types of plans: (a) Strategy (b) Budget.
[Case-Based] 'PureGlow Cosmetics' has a general guideline of resolving customer complaints within 24 hours. However, the exact chronological steps the customer care executive must follow to log the complaint and issue a refund are clearly documented.
9. Identify and differentiate between the two types of plans highlighted here.
SECTION D (6 Marks Each)
[Case-Based] 'SkyNet Internet Services' was the top ISP in the city. The management had crafted a detailed plan for the year. However, their lower-level managers felt like robots, simply executing orders from the top without any freedom to use their own localized sales tactics. Furthermore, during the monsoon, many internet cables were damaged. The middle managers waited for the top management to revise the "official plan" instead of acting immediately, causing thousands of customers to disconnect. Lastly, the company spent 20% of its total revenue just holding board meetings to draft these plans, significantly hurting their profit margins.
10. By quoting lines from the text, identify and explain the **three limitations** of planning highlighted in the case.
📄 PRACTICE PAPER - SET 10 (Level: Ultimate Board Challenger)
SECTION A (1 Mark Each)
1. The plan which defines the exact penalty for unexcused absenteeism is a:
[Case-Based] A firm carefully drafted a plan but failed because they relied on highly inaccurate assumptions regarding the inflation rate.
2. This failure is related to which step of the planning process?3. Assertion (A): Planning establishes standards for controlling.
Reason (R): Planning provides the goals against which actual performance is measured during the controlling process.
Reason (R): Planning provides the goals against which actual performance is measured during the controlling process.
4. Assertion (A): Planning guarantees success.
Reason (R): Since planning involves looking ahead and predicting the future, a well-drafted plan will never fail regardless of environmental changes.
Reason (R): Since planning involves looking ahead and predicting the future, a well-drafted plan will never fail regardless of environmental changes.
5. Which of the following is NOT an internal limitation of planning?
SECTION B (3 Marks Each)
6. Differentiate between 'Policy' and 'Rule'.
[Case-Based] A marketing manager was evaluating three different advertising strategies. After analyzing the pros and cons, he selected 'Strategy B' because it had the highest reach at the lowest cost. He then immediately launched the campaign.
7. Identify the step of the planning process he performed immediately after selecting the alternative. Explain it.
SECTION C (4 Marks Each)
8. "Planning is pervasive and continuous." Explain these two features of planning.
9. What is a 'Budget'? Explain why it is considered a control device as well as a planning device.
SECTION D (6 Marks Each)
[Case-Based] 'Vertex Pharmaceuticals' aimed to launch a new life-saving drug. The management defined the end result: "To capture 40% of the domestic market within one year." To ensure consistency, they established a broad framework stating, "We will only sell through verified wholesale distributors." For these distributors, they provided a detailed, step-by-step chronological guide on how to store and transport the temperature-sensitive drug. Lastly, they prepared a strict numerical statement allocating exactly ₹10 Crores for the entire marketing and distribution operation.
10. By quoting lines from the paragraph, identify and explain the **four different types of plans** formulated by 'Vertex Pharmaceuticals'.
No comments:
Post a Comment