-6-

PLANNING
A. One Word or One line Questions
Q. 1. What is planning ?
Ans. The process of formulating detailed plans about the future is known as planning.
Q. 2. At which level of management, is planning done ?
Ans. At top level of management.
Q. 3. Name two main types of plans.
Ans. Single use plans, standing plans.
Q. 4. What is a standing plan ?
Ans. The plan formulated to perform such an activity or function which takes place repeatedly is
known as standing plan.
Q. 5. What is a single use plan ?
Ans. The plan formulated to perform such an activity or function which takes place only once is
known as single use plan.
Q. 6. What are objectives ?
Ans. Objectives refer to such specific end results which an organisation aims to achieve through
its working in future with regular efforts.
Q. 7. What are (a) policies (b) rules ?
Ans. (a) Policies are general guidelines to action.
(b) Rules are dictates which specify the requisite course of action.
Q. 8. What are procedures
Ans. The systematic methods which are adopted for doing regular activities or tasks, are known
as procedures.
Q. 9. What is a method ?
Ans. The specific technique or way adopted to complete a specific task or step in any procedure
is called a method.
Q. 10. What are strategies ?
Ans. Strategies refer to the policies formulated for the success of the organisation while keeping
in mind the policies of the competitors and competitive environment.
Q. 11. What is budget ?
Ans. A budget refers to such a plan under which policies and plans concerning the future are
presented in a financial form.
B. Fill in the Blanks
1. 'No Smoking' is an example of ............
2. Since every organisation requires planning, that is why planning is considered ............
3. Planning is the ............ function of management.
4. A ............ is formulated while keeping in mind the policies of the competitors.
5. Policies are general ............ to action.
6. ............ is the set of all the details regarding a project prepared to perform a given task.
Ans. 1. rules, 2. universal, 3. primary, 4. strategy, 5. guidelines, 6. Programme.
C. True or False
1. Planning and forecasting are same.
2. Standing plans are formulated for such specific activities which take place only once.
3. Objectives are a pre-requisite for planning.
4. Planning eliminates business risk and uncertainty.
5. Budgets are standing plans.
Ans. 1. False, 2. False, 3. True, 4. False, 5. False.
D. Multiple Choice Questions
1. Planning is :
(a) First function of management (b) Insignificant function of management
(c) Last function of management (d) None of these.
2. Who should plan ?
(a) Supervisor (b) Senior manager
(c) Both (a) and (b) (d) None of these.
3. Single use plans are for
(a) Non-recurring problems (b) Recurring problems
(c) All departments (d) both (a) and (b).
4. Programmes are :
(a) Single use plans (b) Standing plans
(c) Both of these (d) None of these.
5. A strategy is formulated to
(a) Understand others (b) Help others
(c) Counter the moves of the opponents (d) Misguide others.
6. A procedure is a guiding force in the ………….. of the tasks.
(a) Thinking (b) Execution
(c) Controlling (d) Both (a) and (b).
7. Policies provide guidelines for :
(a) Controlling (b) Decision making
(c) Co-ordination (d) None of these.
8. Planning is helpful in
(a) Reducing wastage of time (b) Better utilisation of resources
(c) Emergency (d) None of these.
Ans. 1. (a), 2. (b), 3. (a), 4. (a), 5. (c), 6. (b), 7. (b), 8. (b)

Prepared by :
Pawan Kumar, Lect in Commerce
GGSSS Jalalabad, Distt. Fazilka (# 95010-26095)