PLANNING TEST

Read the following text and answer the following questions on the basis of the same:
Simplex limited had been taken over by Mundhra Group immediately following India’s independence. Since
then it enjoys a rich record of industry presence and experience. In 2005, with the aim to accelerate growth the
company had gone through several rounds of meetings and discussions before launching ERP system to attract
large projects. The management had done effective forecast and critical thinking regarding allocation resources
to reduce wastage. For this purpose the company had laid down multiple courses of action to meet the challenge
of adverse situations. In 2008, the company suffered loss in many projects due to the great recession despite
taking many cost cutting measures. The management had taken utmost care regarding the possible outcome and
timely review of the plans to achieve the set target during that hard time. In 2010 the system implemented
successfully which subsequently helped the company to execute numerous projects with precision and
timeliness.
Q.1 “In 2005, with the aim to accelerate growth the company had gone through several rounds of Meetings and
discussions.” What is the objective mentioned here according to the process stated here? A. Growth and
Development B. Developing PremisesGrowth & development C. Launching IT enabled system D. Cost cutting.
Q.2 “In 2008, the company suffered loss in many projects due to the great recession despite taking many cost
cutting measures.” Which limitation of the management process is indicated here? A. It fails to cope with
sudden changes B. It involves huge cost C. It requires critical thinking d) Need to construct multiple action
plans
Q.3 State whether the given statement is True or False: “The management had done effective forecast and
critical thinking regarding allocation of resources to reduce wastage.”
Q.4 “The management had taken utmost care regarding the possible outcome and timely review of the Plans to
achieve the set target during that hard time.” Which is the last step of the Process mentioned here? A.Follow up
B. Timely execution of projects C. Implementation of Plan D. To prepare alternative course of action
Q.5 Pervasiveness of planning indicates that planning
(a) is a top management function. (b) extends throughout the organisation.
(c) is a future-oriented activity. (d) is the first element of management process.
Q.6 Which one of the following is an importance of planning?
(a) Reducing uncertainty (b) Identifying alternatives critically
(c) Developing leadership (d) Selecting the most appropriate plan
Q.7 Name the function of management which involves setting objectives and developing appropriate courses of
action to achieve these objectives.
Q.8 Which of the following is not a benefit of planning?
(a) Planning reduces overlapping and wasteful activities. (b) Planning is a mental exercise.
(c) Planning provides directions. (d) Planning reduces the risks of uncertainty.
Q.9 Which of the following is a benefit of planning?
(a) Helps in avoiding confusion and misunderstanding. (b) Ensures clarity in thought and action.
(c) Useless and redundant activities are minimised or eliminated. (d) All of the above.
Q.10 Which of the following statements is not true with reference to planning?
(a) Planning is a pre-requisite for controlling. (b) Planning does not lead to rigidity.
(c) Planning enables a manager to look ahead and anticipate changes.
(d) Planning facilitates co-ordination among departments and individuals in the organisation.
(II) Fill ups
1. Planning thus simply means _______ (set up/achieve) the objectives and then setting a course of action for
________ (achieving /setting up) those objectives.
2. Planning is called an activity of looking ________ (forward/backward).
3. Planning should be done before _________ (staffing/closing the business).
4. Planning helps in choosing the right course of action and thus it is rightly called the _______ making process.
5. Planning ______ guarantee success. (does/does not)
(III) True/False
1. Planning leads to prosperity and growth of the firm.
2. Planning helps in reduction of necessary activities.
3. Planning helps to anticipate changes which may take place in future.
4. Planning helps us refine ideas and choose the viable idea for the business.
5. Planning  and controlling   are unrelated.
6. Planning is pre-requisite for controlling.
7. A plan which worked in a particular situation will work in another situation as well.
 (IV)Multiple Choice Questions
Q1. Which of the following is not a step of planning process?
a) Evaluating alternative courses b) Implementing the plan
c) Developing Premises d) Controlling
Q2. Which of the following is the first step in the planning process?
a) Evaluating alternative courses b) Setting Objective
c) Developing Premises d) Implementing the plan
Q3. “The manager is required to make certain assumptions about the future”. Which step of planning
process is mentioned in this statement?
a) Evaluating alternative courses b) Setting Objective
b) Developing Premises c) Implementing the plan
Q4. “The positive and negative aspects of each proposal need to be evaluated in the light of the objective to
be achieved.” Which step of planning process is mentioned in this statement?
a) Evaluating alternative courses b) Identifying alternative courses of action
c) Selecting an alternative d) Implementing the plan
Q5. After setting objective and developing premises what is the next step in planning process?
a) Evaluating alternative courses b) Identifying alternative courses of action
c) Selecting an alternative d) Implementing the plan
Q6. Which step in planning process is concerned with putting the plan into action?
a) Evaluating alternative courses b) Identifying alternative courses of action
c) Selecting an alternative d) Implementing the plan
Q7. “The manager will have to apply permutations and combinations and select the best possible course of
action.” Which step of planning process is mentioned in this statement?
a) Evaluating alternative courses b) Identifying alternative courses of action
c) Selecting an alternative d) Implementing the plan
Q8. Which of the following is the last step in the planning process?
a) Evaluating alternative courses b) Identifying alternative courses of action
c) Follow-up action d) Implementing the plan
Q9. Arrange the following in chronological order.
Evaluating alternative courses
Identifying alternative courses of action
Follow-up action
Setting Objectives
Implementing the plan
Developing Premises
Selecting an alternative
a) 4,6,2,1,7,5,3
b) 3,6,7,1,2,5,4
c) 1,5,2,4,7,6,3
d) 4,1,5,6,7,2,3
Q10. What is the next step after selecting the alternative in planning process?
a) Evaluating alternative courses b) Identifying alternative courses of action
c) Selecting an alternative d) Implementing the plan
11. Planning involves which of the following : –
a) What to do ? b) How to do ? c) Who will do it ? d) All of the above
12. Planning and “Going with the flow’ are : – a) Same b) Different
13. Planning means to bridge the gap between
a) Present and future b) Past and future c) Past and present d) None of the above
14. Which of the following factor depict the importance of planning ?
a) Unity of action b) Unity of direction to employees efforts
c) Both a and b d) None of the above
15. Planning : –
a) Reduces the risk of uncertainty ; b) Reduces overlapping and wasteful activities
c) Promotes innovative ideas d) All of the above
16. Planning : –
a) Facilitates decision making b) Establishes standard for controlling
c) Both a and b d) None of the above
17. Which of the following is a feature of planning :
a) Planning is primary function of management b) Planning focuses on achieving objective
c) Planning is pervasive d) All of the above
18. Which of the following is a feature of planning :
a) Planning is continuous b) Planning is futuristic
c) Planning is a mental exercise d) All of the above
19. Planning is primary function of management because : –
a) It is done before doing anything ; b) Planning is looking forward
c) Planning helps in setting up the base for other activities d) All of the above
20. Planning is pervasive means planning is required : –
a) Somewhere b) Nowhere c) Everywhere d) All of the above
21. Which of the following organisations require planning : –
a) Social b) Political c) Economic d) All of the above
22. Planning is a :-
a) Continuous process. b) One off ; c) Infrequent d) None of the above
23. Which of the following are steps in a plan : –
a) Framing b) Implementation c) Measurement with standard performance d) All of the above
24. Plans are made for : –
a) Forecasting b) Past Evaluation c) Either of the above d) Neither of the above
25. Planning is assumed as a : –
a) Guess work ; b) Systematic thinking based on facts, figures and forecasts
c) Systematic thinking based on intuitions
d) None of the above
26. Which of the following are fallouts of Planning : –
a) It leads to rigidity b) Planning may not work in dynamic environment
c) Planning reduces creativity d) All of the above
27. Rigidity in Planning can lead to : –
a) Reduction in creativity b) Difficulty to change course of action due to change in circumstances
c) Both a and b d) Neither a nor b
28. Planning may not work in dynamic environment. Which of the following are examples of a dynamic
environment : –
a) Pandemic like covid-19 b) War in a country c) Change in technology d) All of the above
29. Plans are made to : –
a) Achieve objectives of the organization ;b) Get a desired outcome ;c) Both A and B d) None of the above
30. Multiple Plans in business may differ due to : –
a) Different objectives for which they are made ; b) Way they are applied ; c) Both A and B d) None of the
above