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Business Studies · 2023 · 6 marks
CBSE 2023 · Region 5 · Set 1 · Q32
(a) Explain 'Objectives' and 'Budget' as type of plans.
(a)
Explain 'Objectives' and 'Budget' as type of plans.
OR
(b)
Explain the following as limitations of planning:
(i)
Planning leads to rigidity.
(ii)
Planning may not work in a dynamic environment.
Marking-scheme solution
Objectives
§ An objective is the end which the management seeks to achieve.
§ An objective needs to be expressed in specific/ quantitative terms
and is to be achieved within a given time period.
§ It is set by the top management and focuses on broad general
issues.
Budget
§ A budget is plan which states expected results of a given future
period in numerical terms. It may be expressed in time, money or
physical units.
§ It is an instrument of both planning and control.
§ It comes under planning as making a budget involves forecasting.
It is also a control device as actual figures can be compared with
expected figures and deviations taken care of.
Planning leads to rigidity
§ Plan is drawn with specific targets within a specific time frame
§ Once the plans are drawn, the managers may not be in a
position to change them
§ Following a pre-decided plan, when circumstances have
changed, may not turn out to be in the organisation’s interest
• Planning may not work in a dynamic environment
The business environment is dynamic. The organization has to
constantly adapt itself to changes in environment by making
• changes in its plans.
It becomes difficult to accurately assess future trends in the
environment if economic policies are modified or political
conditions in the country are not stable or there is a natural
• calamity etc.
Planning cannot foresee everything and, thus, there may be
obstacles to effective planning.
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CBSE Class 12 Business Studies past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.