CBSE Class 12 Business Studies - Planning (Q and A) (#cbsenotes) (#Class12BusinessStudies)

Planning

CBSE Class 12 

Business Studies

Q & A

Q1(CBSE 2012): Name the type of plan which is time bound and linked with a measurable outcome.    

Answer: Objective/ Budget.


Q2(CBSE 2010): Name the type of plan which is in the form of general statements and channelise energies towards a particular direction.

Answer: Policies are a general statement that guides thinking or channelize energies towards a particular direction.


Q3: Which type of plan has the least flexibility and why?

Answer: Rules are enforced sternly and strictly. As such there are no exception or deviations that are allowed. For rules, the managers have no scope for the discretion.




Q4: What is a Business plan?

Answer: A business plan is a document produced before a business is created, giving details of all aspects of the proposed business. The owners usually write the plan, often with help given by advisors from the banks or business advisors.


Q5(CBSE 2013): Explain ‘strategy’ as one of the types of plans.

Answer: Strategy refers to a long-term plan of actions for future decisions as per the organisation’s direction and scope. It is a comprehensive plan to accomplish the organisation’s objectives.
A strategic business plan includes three dimensions:

(i) Determining long-term objective.
(ii) Adopting a particular course of action, and
(iii) Allocating resources necessary to achieve the objectives.


Q6: Differentiate between objective and strategy as types of plan.

Answer:

S No.	Objective	Strategy
1.	It is defined as an end towards which the organisational activities and efforts are to be directed.	A comprehensive plan to accomplish organisational goals.
2.	Specifically, it focuses on the end results to be achieved.	Specifies the policies how tasks are to be achieved.
3	There is no such decision-making guidelines.	Includes the guidelines for making decisions.

Q7: Describe how a bank manager can use a business plan?

Answer:
① The bank manager ensures that the business idea will work and that any money he lends will be safe. Thus he needs to ensure that the business will not fail.

②  He will assess if the product or service which has been planned, is very likely to be in public demand.

③ He will also compare the product and the marketing plans compare well with the competitor banks.

④ By looking at the staffing and details of the owners, he will try and assess if the business has enough resources and right people with the matching skills.