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Business Studies · 2026 · 4 marks
CBSE 2026 · Region 1 · Set 3 · Q27
(a) Explain the following limitations of planning function of management: (i) Planning may not work in a dynamic environment. (ii) Planning reduces…
(a)
Explain the following limitations of planning function of
management :
(i)
Planning may not work in a dynamic environment.
(ii)
Planning reduces creativity.
OR
(b)
Explain the following types of plans :
(i)
Policy
(ii)
Procedure
Marking-scheme solution
(i)
Planning may not work in a dynamic environment.
• The business environment is dynamic and constantly changing
due to economic, political, physical, legal and social factors, so
organisations have to continuously adapt themselves to changes.
• Planning cannot foresee everything and thus, there may be
obstacles to effective planning
(ii)
Planning reduces creativity:
• Planning is mainly done by the top management and the middle
management and other decision makers are neither allowed to
deviate from plans nor are they permitted to act on their own.
• Due to this, the initiative and creativity of employees gets lost or
reduced as they only carry out orders and tend to think along the
same lines, leaving little scope for new or innovative ideas.
OR
Q (b) Explain the following types of plans:
(i)
Policy
(ii)
Procedure
(i)
Policy:
• Policy is a general statement that guides thinking and channelizes
energies towards a particular direction. They are guides to
managerial action and decisions in the implementation of strategy.
• It defines the broad parameters within which a manager may
function. The mangers may use his/her discretion to interpret /
apply a policy.
(ii)
Procedure:
• Procedures are routine steps on how to carry out activities and
specify the exact manner in which any work is to be performed.
• They are specified in a chronological order to be carried out
within a broad policy framework meant for insiders to follow.
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CBSE Class 12 Business Studies past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.