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BSEB Inter Business Studies study materials
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BSEB Inter Business Studies practice questions

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Question 1Nature and Significance of Management

Management is best described as a process because it involves a series of interrelated functions carried out to achieve organisational goals. Which sequence correctly lists the core functions of management in the order usually presented in business studies?

  1. Planning, organising, staffing, directing and controlling Correct answer.
  2. Staffing, directing, organising, controlling and planning
  3. Organising, planning, controlling, staffing and directing
  4. Directing, controlling, planning, organising and staffing

Explanation

Management is treated as a process because its functions are performed in a logical sequence that repeats continuously. Planning comes first, since objectives and courses of action are decided before resources are arranged through organising and staffing; directing then activates people, and controlling compares performance with plans.

Question 2Nature and Significance of Management

A firm states that its purpose is to earn profit, yet it also runs a school for workers' children and follows pollution norms. Which statement best explains why management is called a goal-oriented process?

  1. Management achieves goals automatically once resources are purchased and installed
  2. Management goals are decided only by external regulators and government agencies
  3. Management pursues only the single economic goal of maximum profit for owners
  4. Management coordinates efforts towards multiple economic and social goals simultaneously Correct answer.

Explanation

Management is goal-oriented because it directs the combined efforts of people towards deliberately chosen objectives. Modern organisations pursue economic goals such as profit alongside social goals such as employee welfare and environmental responsibility, and management balances them.

Question 3Nature and Significance of Management

Which feature of management is illustrated when a production manager and a marketing manager are both responsible for their own departments but report to the same general manager?

  1. Management is a dynamic function
  2. Management is a continuous process
  3. Management is an intangible force
  4. Management is a group activity Correct answer.

Explanation

Management is a group activity because organisational goals cannot be achieved by one person working alone. Different managers head different departments and their efforts are integrated through a common authority structure so that the organisation functions as a coordinated whole.

Question 4Nature and Significance of Management

A company's sales fell sharply after a new competitor entered the market, and the management revised its product design and pricing policy in response. Which characteristic of management does this best demonstrate?

  1. Management is a dynamic function Correct answer.
  2. Management is a goal-oriented process
  3. Management is a group activity
  4. Management is an intangible force

Explanation

Management is dynamic because organisations operate in an environment of changing technology, competition and consumer preferences. Revising design and pricing to meet a new competitor shows management adapting its plans and methods to external change.

Question 5Nature and Significance of Management

Which pair of factors correctly distinguishes management as a science while also recognising it as an art?

  1. It depends on government rules, and it depends on the manager's family background
  2. It relies on employees' obedience, and it relies on trade union support
  3. It requires machines and technology, and it requires accounting records
  4. It uses a body of systematic knowledge, and it requires personal skill in applying that knowledge Correct answer.

Explanation

Management is science because it has an organised body of principles based on observation and experimentation. It is art because these principles must be applied with skill, judgement and creativity to real situations involving people.

Question 6Nature and Significance of Management

Management is often called a profession, yet it differs from recognised professions such as medicine. Which feature best supports the view that management is not a fully developed profession?

  1. There is no single universally compulsory code of conduct enforced by law for all managers Correct answer.
  2. Management has no body of organised knowledge at all
  3. Managers must hold a licence before they can be appointed
  4. Managers never receive any formal education or training

Explanation

A fully developed profession has a compulsory code of conduct enforced by a statutory body, and entry is restricted to licensed persons. Management has professional bodies and codes, but membership and adherence are not legally compulsory for all managers, so it is called a profession only in a limited sense.

Question 7Nature and Significance of Management

In a small firm the owner performs planning, purchasing, selling and record keeping personally. Which level of management is the owner effectively performing?

  1. Middle level only, since the owner works through supervisors
  2. Supervisory level only, since the owner deals directly with customers
  3. Top level only, since owners always confine themselves to policy
  4. All levels, since the owner performs top, middle and supervisory functions together Correct answer.

Explanation

Levels of management describe the nature of functions performed rather than the number of people employed. In a small enterprise one person may set objectives, coordinate activities and supervise operations, thereby carrying out the work of all three levels.

Question 8Nature and Significance of Management

Which function of top-level management is most directly concerned with integrating the activities of different departments and keeping the organisation in touch with its external environment?

  1. Placement of new workers on the assembly line
  2. Coordination of activities and formulation of overall policy Correct answer.
  3. Supervision of daily work on the shop floor
  4. Preparation of routine sales invoices

Explanation

Top management is responsible for setting objectives, framing policies and coordinating the work of all departments. It also represents the organisation before the outside world, which is why it must keep the enterprise aligned with its environment.

Question 9Nature and Significance of Management

A factory manager's work includes greeting visitors, signing routine letters and attending a trade fair on behalf of the company. Which classification of managerial roles fits these activities?

  1. Interpersonal roles only
  2. A mixture of interpersonal, informational and decisional roles Correct answer.
  3. Decisional roles only
  4. Informational roles only

Explanation

Managerial roles are grouped as interpersonal, informational and decisional. Receiving visitors is a figurehead or liaison activity, attending a trade fair involves gathering and sharing information, and signing letters reflects routine administrative decisions, so more than one category is involved.

Question 10Nature and Significance of Management

Which statement correctly explains why coordination is described as the essence of management rather than as one separate function among the others?

  1. Coordination runs through every function so that all efforts move towards common goals Correct answer.
  2. Coordination replaces planning, organising, staffing, directing and controlling
  3. Coordination is a one-time activity completed when the organisation is formed
  4. Coordination is performed only by the managing director at the end of the year

Explanation

Coordination is not a distinct function performed at one stage; it is the thread that runs through planning, organising, staffing, directing and controlling. Each function is carried out in a way that keeps departmental efforts unified and directed at organisational goals.

Question 11Nature and Significance of Management

In an organisation, growth in output is achieved with the same number of workers and machines. Which significance of management does this illustrate?

  1. Management helps in achieving group goals
  2. Management helps in the development of society
  3. Management increases efficiency Correct answer.
  4. Management creates a dynamic organisation

Explanation

Efficiency means achieving more output with the same or fewer resources by reducing waste and using inputs better. Producing a higher output from unchanged workers and machines is therefore a direct illustration of management's role in increasing efficiency.

Question 12Nature and Significance of Management

A firm reduces its workforce but maintains the same level of production by improving work methods. Which pair of concepts does this situation best illustrate?

  1. Neither efficiency nor effectiveness, since the workforce was reduced
  2. Both efficiency and effectiveness, since output is maintained using fewer resources Correct answer.
  3. Efficiency without any concern for effectiveness
  4. Effectiveness without any concern for efficiency

Explanation

Effectiveness means completing the intended task and achieving the target, while efficiency means doing so with minimum cost and waste. Maintaining output after cutting the workforce shows the target is still met and resources are used more economically, so both are present.

Question 13Nature and Significance of Management

Which of the following is a characteristic that distinguishes management as a goal-oriented process from mere day-to-day activity?

  1. Decisions are taken randomly by whoever is available
  2. Activities are performed only when a crisis arises
  3. Work is carried out without any predetermined target
  4. Deliberate objectives guide the efforts of all members Correct answer.

Explanation

In management, objectives are set in advance and all planning, organising, directing and controlling is directed at them. Without predetermined goals, coordinated effort loses direction, which is why goal orientation is treated as a defining feature.

Question 14Nature and Significance of Management

A manager sets a target of 500 units per week and also decides that no more than 400 kilograms of raw material should be used for it. Which interpretation of efficiency and effectiveness is correct?

  1. Both statements describe effectiveness only
  2. The output target reflects effectiveness, while the material limit reflects efficiency Correct answer.
  3. The output target reflects efficiency, while the material limit reflects effectiveness
  4. Both statements describe efficiency only

Explanation

Effectiveness is concerned with achieving the intended result, which here is the output target of 500 units. Efficiency is concerned with the resources used to reach that result, so the limit on raw material consumption measures how economically the target is achieved.

Question 15Nature and Significance of Management

Which statement about the nature of management as a discipline is accurate?

  1. Management principles become obsolete once a firm grows large
  2. Management principles apply only to manufacturing firms
  3. Management principles are flexible guidelines that must be adapted to the situation Correct answer.
  4. Management principles are as exact and universal as the laws of physics

Explanation

Management principles are derived from observation and experience and are applied with judgement, so they are flexible rather than rigid. They must be adapted to the size, technology and environment of the organisation, which is why management is described as an inexact social science.

Question 16Nature and Significance of Management

A supervisor spends most of the day guiding workers on machine operation, maintaining discipline and reporting daily output to the middle level. Which description of the supervisory level's position is most accurate?

  1. It is the topmost level, which frames overall policy for the enterprise
  2. It is an outside agency that audits the work of the enterprise
  3. It is a middle level that coordinates departmental budgets
  4. It is the lowest level of management, which links the workforce with higher management Correct answer.

Explanation

Supervisory management, also called operational or first-line management, directly oversees the work of operatives. It is the point of contact between the workforce and the higher levels, passing instructions downward and reporting performance upward.

Question 17Principles of Management

According to Henri Fayol, the principle that a worker should receive orders from only one superior is called:

  1. Unity of command Correct answer.
  2. Esprit de corps
  3. Scalar chain
  4. Unity of direction

Explanation

Unity of command states that each subordinate should receive orders and be accountable to only one superior, which prevents confusion and conflicting instructions. Unity of direction is different: it concerns one head and one plan for a group of activities with the same objective.

Question 18Principles of Management

Taylor's technique of separating planning work from execution work, so that a specialist prepares the task and the worker simply performs it, is known as:

  1. Method study
  2. Standardisation of work
  3. Functional foremanship Correct answer.
  4. Differential piece wage

Explanation

Functional foremanship splits the factory into a planning department and an execution department, with specialist foremen each supervising one aspect of the work. It rests on the idea that a single general foreman cannot possess every technical skill required.

Question 19Principles of Management

In management terminology, 'efficiency' differs from 'effectiveness' mainly because efficiency focuses on:

  1. Achieving the goal regardless of the resources consumed
  2. Doing the right task at the right time
  3. Setting the objectives of the organisation
  4. Completing the task with minimum cost and waste of resources Correct answer.

Explanation

Efficiency is about doing the job correctly with the least possible use of resources, so it is a cost-benefit relationship between inputs and outputs. Effectiveness, by contrast, is about completing the task and reaching the stated goal on time.

Question 20Principles of Management

A firm's management introduces a policy that every worker on the shop floor must be allowed to express grievances to supervisors without fear of punishment. Which Fayol principle does this policy most directly reflect?

  1. Stability of personnel
  2. Principle of equity Correct answer.
  3. Order
  4. Remuneration of employees

Explanation

Equity requires fair and kind treatment of employees, so that they feel secure and are willing to voice concerns without fear. Fair dealing by managers builds loyalty and reduces conflict in the organisation.

Question 21Principles of Management

Which of the following best describes the concept of 'management as a science'?

  1. It is a set of unrelated rules that cannot be tested
  2. It uses systematic, organised knowledge based on observation and experimentation Correct answer.
  3. It applies only to manufacturing enterprises and not to services
  4. It relies mainly on intuition and personal experience of managers

Explanation

Management as a science means it has a systematised body of knowledge built through observation, experimentation and verification, with principles that can be tested and taught. Like other sciences, it establishes cause-and-effect relationships, though it is a social science rather than an exact one.

Question 22Principles of Management

A manager instructs a subordinate to submit the monthly sales report by the fifth of every month and grants the subordinate the authority to demand data from field staff. This illustrates:

  1. Subordination of individual interest
  2. Authority and responsibility going together Correct answer.
  3. Initiative of the employee
  4. Centralisation of decision-making

Explanation

When a task is assigned, the subordinate must also be given the authority needed to complete it, because responsibility without authority cannot be discharged. Fayol's principle holds that authority and responsibility are two sides of the same coin.

Question 23Principles of Management

The technique of 'time study' in scientific management is primarily used to:

  1. Fix the standard time for performing a well-defined job Correct answer.
  2. Determine the most economical sequence of machine operations
  3. Ascertain the fair day's wage for a worker
  4. Classify workers according to their skill levels

Explanation

Time study uses a stopwatch to record the time taken by an average worker to complete a task, and from repeated observations a standard time is set. This standard then becomes the basis for deciding a fair day's work and for planning production.

Question 24Principles of Management

Which statement correctly distinguishes management principles from pure scientific principles?

  1. Management principles can be tested only in laboratories
  2. Management principles are exact and hold in all situations without exception
  3. Management principles are flexible and applied with judgement depending on the situation Correct answer.
  4. Management principles are formed without any observation of practice

Explanation

Management principles are guidelines formed from observation and experience, but they are not rigid laws; managers must adapt them to the situation at hand. This flexibility, along with the influence of human behaviour, distinguishes them from exact scientific principles.

Question 25Principles of Management

Under the principle of 'division of work', a large firm splits production into separate tasks performed by specialised workers. The main advantage is:

  1. It transfers responsibility for output to the workers alone
  2. It increases specialisation, leading to greater efficiency and output Correct answer.
  3. It reduces the need for supervision
  4. It eliminates the need for coordination among departments

Explanation

Division of work breaks the total job into small, repetitive tasks so that each worker becomes skilled at one task, raising speed, accuracy and total output. Fayol noted that this specialisation applies to managerial as well as technical work.

Question 26Principles of Management

A factory manager wants to apply Taylor's differential piece wage system. Which design is consistent with the technique?

  1. Workers below standard output get a lower piece rate and those above get a higher piece rate Correct answer.
  2. Wages are paid strictly according to the number of hours spent at the workplace
  3. A fixed monthly salary is paid with no link to production
  4. All workers receive the same wage irrespective of output

Explanation

Differential piece wage pays a lower rate per unit to workers who fall below the standard output and a higher rate to those who meet or exceed it. This creates an incentive for efficient workers while penalising slow ones, thereby raising productivity.

Question 27Principles of Management

'Mental revolution' in scientific management refers to:

  1. The introduction of machines in place of manual labour
  2. A change in the layout of the factory to speed up production
  3. A complete change in the mindset of workers and management from conflict to cooperation Correct answer.
  4. The transfer of ownership of the factory to workers

Explanation

Taylor argued that scientific management requires both workers and managers to abandon the old attitude of dividing the surplus as a prize of conflict. Instead they should cooperate to increase output so that both gain, which is the essence of the mental revolution.

Question 28Principles of Management

Which of the following is a valid criticism of Fayol's principles of management?

  1. They reject the idea of any hierarchy in organisations
  2. They were derived entirely from laboratory experiments on machines
  3. They apply only to government departments and not to private firms
  4. They were based on his personal experience and are therefore not rigorously tested generalisations Correct answer.

Explanation

Fayol's principles came largely from his own long experience as a mining engineer and manager, so critics argue they are personal observations rather than conclusions drawn from controlled research. This makes them useful guidelines but not proven laws.

Question 29Principles of Management

A company facing a sudden rise in demand asks supervisors to refer all major decisions to the general manager while routine matters are decided at lower levels. Which principle is being applied, and how?

  1. Unity of direction, because one plan governs the whole company
  2. Centralisation, because significant decision authority is retained at the top level Correct answer.
  3. Decentralisation, because authority is pushed to the lowest level for all matters
  4. Scalar chain, because communication must follow the line of authority strictly

Explanation

Centralisation means concentrating decision-making authority at the higher levels of the organisation. Retaining major decisions with the general manager while allowing only routine matters at lower levels is therefore centralisation, and the degree of it can vary with circumstances.

Question 30Principles of Management

The principle of 'subordination of individual interest to general interest' suggests that a manager should:

  1. Reconcile individual interests with organisational goals so that the organisation's interest prevails Correct answer.
  2. Give priority to personal goals of senior executives over company goals
  3. Abolish all personal goals of employees
  4. Allow each department to pursue its own interest independently

Explanation

This principle requires that the interests of the organisation as a whole take precedence over the interests of any individual or group within it. Managers apply it by harmonising personal goals with organisational goals rather than by suppressing personal ambition entirely.

Question 31Principles of Management

Which pairing of a management function with its core purpose is correct?

  1. Directing - deciding the long-term objectives of the enterprise
  2. Controlling - comparing actual performance with planned standards and taking corrective action Correct answer.
  3. Planning - filling positions with competent people
  4. Staffing - measuring actual performance against standards

Explanation

Controlling is the function of measuring actual performance against the standards set in planning and correcting deviations. It closes the loop of the management cycle by ensuring that activities conform to plans.

Question 32Principles of Management

A manager argues that because his firm's workers are highly skilled and the environment changes rapidly, he should allow subordinates greater freedom in decision-making. Which principle of management is he invoking, and why?

  1. Decentralisation, because competence at lower levels and the need for quick response favour spreading authority Correct answer.
  2. Stability of personnel, because workers should not change jobs frequently
  3. Esprit de corps, because team harmony replaces the need for clear authority
  4. Centralisation, because skilled workers need close supervision from the top

Explanation

Decentralisation is favoured when subordinates are competent and decisions must be taken quickly in a changing environment, since authority is pushed to the levels closest to the problem. Centralisation, by contrast, suits situations where uniformity and top-level control are essential.

Question 33Business Environment

Which component of the business environment includes inflation, interest rates and the money supply?

  1. Social environment
  2. Economic environment Correct answer.
  3. Technological environment
  4. Legal environment

Explanation

The economic environment covers macroeconomic forces such as inflation, interest rates, credit availability and national income that shape demand and cost for firms. These variables directly influence purchasing power and the cost of capital, so they belong to the economic dimension rather than to law, society or technology.

Question 34Business Environment

A firm studies the caste composition, family structure and literacy levels of the region where it plans to sell. Which dimension of the business environment is it examining?

  1. Economic environment
  2. Political environment
  3. Legal environment
  4. Social environment Correct answer.

Explanation

The social environment includes demographic and cultural factors such as family structure, caste composition, literacy and customs that influence what consumers buy and how they respond to marketing. Because these are features of society and culture, they fall under the social dimension of the business environment.

Question 35Business Environment

Which feature of the business environment is best described by the fact that a firm cannot control the forces acting on it and must adapt its plans to them?

  1. Dynamic and static
  2. Uncertain and uncontrollable Correct answer.
  3. Specific and controllable
  4. Internal and self-generated

Explanation

A defining feature of the business environment is that its forces lie largely outside the control of a single firm, and their timing and intensity are uncertain. Firms therefore scan the environment and adjust their strategies rather than dictate the forces themselves.

Question 36Business Environment

Which of the following is an element of the internal environment of a business?

  1. Government fiscal policy
  2. Technological change in the industry
  3. Value system of the founders Correct answer.
  4. Competitor pricing strategy

Explanation

The internal environment consists of factors within the organisation that it can influence, such as its value system, management structure, human resources and physical assets. The value system of the founders shapes decisions from inside the firm and is therefore an internal element.

Question 37Business Environment

A company begins scanning newspapers, trade journals and government reports to identify early signals of change before they affect it. Which term describes this activity?

  1. Capital budgeting
  2. Environmental scanning Correct answer.
  3. Social auditing
  4. Environmental auditing

Explanation

Environmental scanning is the systematic collection and interpretation of information about external forces so that a firm can anticipate opportunities and threats early. Reading journals and reports for early signals is the classic description of scanning rather than of an audit or a financial appraisal.

Question 38Business Environment

A firm identifies a growing preference for millet-based foods among urban consumers and launches a ready-to-eat millet snack. This response best illustrates which benefit of understanding the business environment?

  1. Reducing the wage bill
  2. Identifying opportunities early Correct answer.
  3. Eliminating all competition
  4. Avoiding statutory audits

Explanation

Studying the environment helps a firm spot emerging customer preferences before rivals do and convert them into new products, which is the benefit of identifying opportunities early. Launching a product that matches a detected trend shows the firm using environmental knowledge to gain first-mover advantage.

Question 39Business Environment

Which of the following is an example of a legal environment factor affecting business in India?

  1. The spread of internet banking
  2. The custom of gifting during festivals
  3. The level of consumer disposable income
  4. The Companies Act requirements on disclosure Correct answer.

Explanation

The legal environment consists of laws, statutes and regulations that prescribe how businesses must operate, and the disclosure requirements of the Companies Act are a clear statutory obligation. The other options describe economic, technological and social factors respectively.

Question 40Business Environment

A firm's suppliers delay deliveries and its customers demand shorter credit terms. These pressures arise from which layer of the business environment?

  1. Macro environment
  2. General environment
  3. Specific environment Correct answer.
  4. Internal environment

Explanation

The specific environment, also called the task environment, comprises stakeholders the firm deals with directly, such as suppliers, customers, competitors and creditors. Delivery delays and credit demands come from these immediate parties rather than from broad macro forces.

Question 41Business Environment

Which statement correctly distinguishes the business environment from the internal environment of a firm?

  1. The business environment lies outside the firm's boundaries while the internal environment lies within them Correct answer.
  2. The business environment can be altered at will by the firm while the internal environment cannot
  3. The business environment is fixed over time while the internal environment changes constantly
  4. The business environment consists only of government agencies while the internal environment consists only of employees

Explanation

The business environment refers to external forces surrounding the firm, whereas the internal environment refers to conditions within the organisation such as its value system, resources and structure. The boundary between outside and inside is the essential distinction.

Question 42Business Environment

A firm's SWOT analysis lists a growing young population as a favourable external condition. Under which heading does this belong?

  1. Threat
  2. Opportunity Correct answer.
  3. Strength
  4. Weakness

Explanation

In SWOT analysis, opportunities are favourable conditions in the external environment that a firm can exploit, and a growing young population is an external demographic trend. Strengths and weaknesses, by contrast, refer to internal capabilities and limitations.

Question 43Business Environment

Which of the following best explains why the business environment is described as dynamic?

  1. It consists of forces that are fully predictable by managers
  2. It consists of forces that are identical for every industry
  3. It consists of forces that remain constant over long periods
  4. It consists of forces that change continuously, such as technology and consumer tastes Correct answer.

Explanation

The environment is called dynamic because its constituent forces, including technology, consumer preferences, laws and economic conditions, keep changing and thereby alter the opportunities and threats facing firms. Continuity, uniformity and predictability are the opposite of what this feature implies.

Question 44Business Environment

A firm plans to enter a new state and prepares a report on local labour laws, political stability, cultural attitudes to its product and the spending power of residents. This report is an exercise in which activity?

  1. Financial statement analysis
  2. Environmental analysis for market entry Correct answer.
  3. Inventory control
  4. Production planning

Explanation

Environmental analysis brings together legal, political, social and economic information about a target market so that entry decisions rest on an understanding of external conditions. Because the report examines multiple dimensions of the environment of a new state, it is environmental analysis for market entry.

Question 45Business Environment

Which pair correctly matches a dimension of the business environment with an example of its influence on a firm?

  1. Political environment: a change in consumer fashion raises demand
  2. Social environment: a court ruling orders a firm to recall a product
  3. Technological environment: new machinery lowers unit cost of production Correct answer.
  4. Economic environment: a new labour statute raises compliance cost

Explanation

The technological environment covers advances in machinery, processes and know-how, and new machinery that lowers unit cost is a direct technological influence on efficiency. The other pairs attach examples to the wrong dimension.

Question 46Business Environment

Two firms in the same industry face the same external environment, yet one prospers and the other declines. Which explanation is most consistent with the study of business environment?

  1. Only government policy can explain differences in firm performance
  2. The firm that scans the environment and adapts its strategy exploits opportunities that the other misses Correct answer.
  3. The environment affects both firms identically, so performance must differ for non-strategic reasons
  4. The environment is irrelevant because outcomes depend only on luck

Explanation

A shared environment presents similar opportunities and threats, but firms differ in how well they scan and interpret it and in how quickly they adapt their strategies. Superior environmental awareness and responsiveness therefore help explain why one firm prospers while another declines.

Question 47Planning

In business planning, what is the primary purpose of setting a clearly defined objective?

  1. To remove the need for any further decision-making by managers
  2. To give direction to all activities and provide a standard against which performance can be measured Correct answer.
  3. To replace the need for a written budget in the organisation
  4. To guarantee that competitors will not enter the market

Explanation

An objective states the end result the business wants to achieve, so it gives direction to effort and later becomes the yardstick for measuring actual performance. It does not eliminate decisions, block competitors, or substitute for budgets.

Question 48Planning

Which statement best describes the relationship between planning and forecasting?

  1. Planning is only concerned with the past, while forecasting deals with the present
  2. Forecasting is an assumption or estimate about the future, while planning is deciding in advance what to do Correct answer.
  3. Forecasting is a wider activity that includes planning as one of its parts
  4. Planning and forecasting are identical terms used interchangeably in business studies

Explanation

A forecast is an estimate of what is likely to happen, such as expected sales or demand, and it serves as an input to planning. Planning goes further by deciding the actions the business will take to reach its objectives.

Question 49Planning

A manager writes that the firm will 'increase sales in the eastern region by 15 per cent within the next twelve months'. Which quality of a good plan does this statement best illustrate?

  1. Specific and measurable target Correct answer.
  2. Broad and general direction
  3. Informal verbal instruction
  4. Flexibility

Explanation

A sound objective should be specific and measurable so that progress can be checked. The statement names the region, the amount of increase and the time period, which makes it verifiable.

Question 50Planning

Why is planning described as a continuous process in business management?

  1. Because a plan, once prepared, must be implemented without any review
  2. Because planning is performed only by the top management once a year
  3. Because planning is done only at the time of starting a new business
  4. Because plans must be reviewed and revised as conditions and information change Correct answer.

Explanation

Planning does not end with the preparation of a document; managers monitor results and revise plans when the environment, resources or objectives change. This ongoing review makes planning continuous.