12th Class Business Studies Planning Question Bank Passage Bassed Questions

  • question_answer
    it is very difficult to assess future trends in the environment if economic policies are modified or political conditions in the country are not stable. Intense competition in the market can also upset financial plans, then sales targets may have to be revised.” Identify the limitation of the function of management as highlighted above.

    A) Planning leads to rigidity

    B) Planning may not work in a dynamic environment

    C) Planning is a time-consuming process

    D) Planning does not guarantee success.

    Correct Answer: B

    Solution :

    [b] The environment in which a business exists is very dynamic. Thus] it becomes very difficult to forecast the future when economic policies of the government keep on changing.


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