MULTIPLE CHOICE QUESTIONS:
Q.1Radha Rani is the C.E.O. of ‘Radhika Sales Pvt. Ltd.’ Besides other managerial
activities, she is an expert in planning. While planning for her company, she noticed
that at first several options are gathered, then their evaluation is done and finally the
most suitable option is selected. Once she was confronted with such a problem as
had only one option available for its solution. To select this very option was her
compulsion. Now, for the first time she realized that the necessity of planning is
there only when several options are available. Identify the feature of planning in the
event stated above.
(a) Planning is continuous. (b) Planning is futuristic.
(b) Planning involves decision making. (d) Planning is pervasive.
Q.2 Saurabh decided to start a chocolates manufacturing business. He set the target
of earning 10% profit on sales in the first year. As a good businessman, he was
concerned about the future of the business, which was uncertain. He gathered
information that the demand for chocolates is increasing day by day. He used this
information as the base for future planning and shared it with his team. On the basis
of the gathered information, he scheduled a meeting in the following week to find
innovative ways to achieve the objectives. Identify one out of the two steps, which
have been followed by Saurabh that are related to the process of one of the
functions of management.
(a) Follow up action (b) Selecting an alternative
(b) Developing Premises (d) Evaluating alternative courses
Q.3In a business organization, the manager is busy in making plans for the coming
year. The company has launched so many new products in the market. The main
question before the company is how to advertise the new products. In the answer to
this question, the planners collected several suggestions; namely, the job of
advertisement should be done by the company itself; for advertisement the help of
outsourcing of services should be taken; some of the work of advertisement should
be done by the company itself and for some of it the outsourcing should be
depended on. Still, other answers to this question are being looked for. Which
particular stage of the ‘Planning Process’ in the above event is being completed by
the managers?
(a) Setting objectives (b) Developing premises
(b) Identifying alternative courses of action (d) Evaluating alternative courses
Q.4 Suhani a home science graduate from a reputed college has recently done a
cookery course. She wished to start her own venture with a goal to provide ‘health
food’ at reasonable price. She discussed her idea with her teacher (mentor) who
encouraged her. After analyzing various options for starting her business venture,
they shortlisted the option to sell readymade and ‘ready to make ‘vegetable shakes
and sattu milk shakes. Then they both weighed the pros and cons of both the
shortlisted options. Name the function of management being discussed above.
a) Planning b) Organizing c) Directing d) Controlling
Q. Read extract given below and answer the question on the basis of the same.
The CEO of ABC limited, auto mobile enterprise dreams of his company becoming
the best player in future for which he sets the objectives, forecast the future and
develops various courses of [Link] has also made a statement indicating sales
volume for the next financial year to achieve the desired sales as highlighted in the
statement. He decided to advertise in all the leading newspapers is in every state of
India for the next six months, so he also wants to train his employees for achieving
his sales target. As a part of the training programme for newly appointed sales
executive, CEO fixes responsibility of sales managers as mentors to take the
executives for visit to their existing customers and help them learn on the job.
Q.5Which function of management is highlighted in the first line of the given
extract?
1. Planning 2. Controlling 3. Staffing 4. None of these
Q.6Changes and events cannot be eliminated but they can be anticipated and
managerial response to them can be developed. Which importance of planning is
highlighted in the above statement?
a) Planning provides direction.
b) Planning reduces overlapping and wasteful activities.
c) Planning reduces the risk of uncertainty.
d) Planning facilitates decision making.
Q.7Sales Forecasting is the basis on which a business firm prepares its annual plan
for production and sales. Which feature of planning is highlighted in the above case?
a) Planning focuses on achieving objectives. b) Planning is continuous.
b) Planning is the primary function of management. d) Planning is futuristic.
Read the extract given below and answer the questions on the basis of the same.
(Q.8-Q.11)
Mona inherited a 30-acres ancestral land from her grandparents. She decided to
venture into agriculture, for this purpose she set out specific goals, objectives.
Everything was a challenge because she was not aware about farming. She learned
every activity and, in the process, thought of assisting other farmers as well. She
eventually launched her own company Agro limited. She wanted to be sure that the
activities effectively met the best interest of the company and the farmers. Hence,
she prepared an annual plan for production, sales and marketing, through sales
forecasting she’ll I realized that farmers were growing only one or two crops. On
account of this the land remained idle for the rest of the year. she identified and
evaluated different alternatives through which the farms could be utilized
throughout the year. She used her foresight and systematic thinking, based on
analysis of all fixed analysis of all the facts and examined and evaluated all the
alternatives. She presented a plan to the Farmers Union, where after harvesting the
primary crops, seasonal vegetables and foods could be grown.
Q.8Hence she prepared an annual plan for production sales and marketing through
sales forecasting. Which feature of planning is depicted in this statement?
1. Planning is continuous 2. planning is futuristic
2. planning involves decision-making 4. planning is a mental exercise
Q.9 For this purpose she set out specific goals objectives and activities which
feature of planning is depicted in this statement?
1. Planning focuses on achieving objectives
2. planning is a primary function of management
3. planning involves decision-making
4. planning is a mental exercise
Q.10Thus, she identified and evaluated different alternatives through which the
farms could be utilized throughout the year. Which feature of planning is depicted
here?
1. Planning is pervasive
2. planning is continuous
3. planning his futuristic
4. planning involves decision-making
Q.11 She used her foresight and logical and systematic thinking based on analysis of
all facts and examined and evaluated all the alternatives. which feature of planning is
depicted here?
1. Planning focuses on achieving objectives
2. planning is a primary function of management
3. planning is mental exercise
4 planning involves decision-making
Q.12 Identify the statement which is not correct.
a) Planning is required a top-level management only.
b) Planning facilitates decision-making
c) Planning is a time-consuming process
d) All are correct.
Q.13 Are the anticipated environments in which plans are expected to operate.
a) Planning premises b) Forecasting c) Objectives d) none of these.
Q.14 Mr. Ram is the C.E.O. in ‘Ram Lakhan General Pvt. Ltd.’ He is the head of the
team making plans for the company also. He gave a number of suggestions to the
team out of which the two main 4 | Page suggestions were: First, Mr. Ram said that
they had to face a lot of problem in getting the main raw material used in the
company, but in the next year it was possible that they could get it easily. Secondly,
in the second coming year the rate of bank interest was most likely to increase,
which would affect the company’s costs. He laid emphasis on this matter that both of
his remarks should be kept in view while preparing the plans. Clarify to which stage
of the planning process the above event is related.
(a) Setting objectives (b) Developing premises
(b) Identifying alternative courses of action (d) Evaluating alternative courses
Q.15 MrsMadhviBhire is working as a manager in ‘Taarik and Company’. She is
involved in a problem related to a particular product. She is unable to decide
whether she should produce that product in her own company or she should buy it
from the market. She studied both the options deeply with the help of specialists. In
order to maintain the company’s impression on the minds of the customers, she
decided to produce the product in the company itself. She is hopeful of the complete
success of this decision. Identify the stage of the ‘planning process’ on which Mrs
Madhvi reached the final decision.
(a) Evaluating alternative courses
(b) Selecting an alternative
(c) Implementing the plan
(d) Follow-up action
Q.16 Super Fine Rice Ltd. has the largest share of 55% in the market. The company’s
policy is to sell only for cash. In 2019, for the first-time company’s number one
position in the industry has been threatened because other companies started
selling rice on credit also. But the managers of Super Fine Rice Ltd. continued to rely
on it’s previously tried and tested successful plans which didn’t work because the
environment is not static. This led to decline in sales of Super Fine Rice Ltd. The
above situation is indicating two limitations of planning which led to decline in its
sales. Identify these limitations.
Q17 Suhasini, a home science graduate from a reputed college, has recently done a
cookery course. She wished to start her own venture with a goal to provide ‘health
food’ at reasonable prices. She discussed her idea with her teacher (mentor) who
encouraged her. After analysing various options for starting her business venture,
they short listed the option to sell ready-made and ‘ready to make’ vegetable shakes
and sattu milk shakes. Then, they weighed the pros and cons of both the shortlisted
options. a) Name the function of management being discussed above and give any
one of its characteristics.
[Link] years ago, Madhu completed her degree in food technology. She worked
for some time in a company that manufactured chutneys, pickles and murabbas. She
was not happy in the company and decided to have her own organic food processing
unit for the same. She set the objectives and the targets and formulated an action
plan to achieve the same. One of her objectives was to earn 10% profit on the
amount invested in the first year. It was decided that raw materials like fruits,
vegetables, spices, etc. will be purchased on three months credit from farmers
cultivating only organic crops. She also decided to follow the steps required for
marketing of the products through her own outlets. She appointed Mohan as the
Production Manager who decided the exact manner in which the production
activities were to be carried out. Mohan also prepared a statement showing the
number of workers that will be required in the factory throughout the year. Madhu
informed Mohan about her area wise sales target for different products for the
forthcoming quarter. While working on the production table, a penalty of ₹ 100 per
day for not wearing caps, gloves and apron was announced. Quoting lines from the
above paragraph, identify and explain the different types of plans discussed.
[Link] term demonetization has become a household name since the government
pulled the old Rs. 500 and Rs. 1,000 notes out of circulation in November 2016. Prior
to the year 2016, the Indian government had demonetized bank notes on two prior
occasions—once in the year 1946 and then again in the year 1978. In both cases, the
purpose was to combat tax evasion by ‘black money’. Identify the types of plan being
discussed in the above lines.
Q20. ‘Apna Ghar’ a company dealing in consumer durables, plans to increase the sale
of its products by 25% around Diwali this year. Moreover, in order to cash on the
implementation of the seventh pay commission by that time, which is likely to raise
the income of 47 lakh serving employees of the Central government and 52 lakh
pensioners, the company has created 30 advertisement films which will be aired
across 85 national and regional channels until Diwali. In context of the above case: i)
Identify the two different types of plans that ‘Apna Ghar’ proposes to implement by
quoting lines from the paragraph. ii) Distinguish between the two types of plans as
identified in part (i).