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Business Studies · 2026 · 4 marks
CBSE 2026 · Region 2 · Set 2 · Q29
(a) Explain the following limitations of planning: (i) Planning reduces creativity (ii) Planning involves huge costs
(a)
Explain the following limitations of planning :
(i)
Planning reduces creativity
(ii)
Planning involves huge costs
OR
(b)
Explain the following points of importance of Decentralisation :
(i)
Quick decision-making
(ii)
Relief to top management
Marking-scheme solution
(i)
Planning reduces creativity
§ Planning is an activity done by the top management. As a consequence, middle
management and other decision makers are not allowed to deviate from the plans
nor are they permitted to act on their own.
§ As a result, initiative and creativity inherent in them gets lost or reduced.
(ii)
Planning involves huge costs
§ When plans are drawn up huge costs are involved in their formulation. These may
be in terms of time and money for example, checking accuracy of facts may involve
lot of time. Detailed plans require scientific calculations to ascertain facts and
figures.
§ The costs incurred sometimes may not justify the benefits derived from the plans.
OR
Q. (b) Explain the following points of importance of Decentralisation:
(i)
Quick decision-making
(ii)
Relief to top management
(i)
Quick decision-making
§ In a decentralised organisation, since decisions are taken at levels which are nearest
to the points of action and there is no requirement for approval from many levels,
the decision making is quicker.
§ There are also less chances of information getting distorted because it doesn’t have
to go through long channels.
(ii)
Relief to top management
§ Decentralisation diminishes the amount of direct supervision exercised by a
superior over the activities of a subordinate because they are given the freedom to
act and decide albeit within the limits set by the superior.
§ Decentralisation also leaves the top management with more time which they can
devote to important policy decisions rather than occupying their time with both
policy as well as operational decisions.
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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.