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Business Studies · 2026 · 6 marks
CBSE 2026 · Region 3 · Set 1 · Q34
(a) Explain the following limitations of planning: (i) Planning leads to rigidity (ii) Planning may not work in a dynamic environment (iii) Planning…
(a)
Explain the following limitations of planning :
(i)
Planning leads to rigidity
(ii)
Planning may not work in a dynamic environment
(iii)
Planning involves huge costs
OR
(b)
Explain the following points of importance of planning :
(i)
Planning facilitates decision-making
(ii)
Planning establishes standards for controlling
(iii)
Planning promotes innovative ideas
Marking-scheme solution
Limitations of Planning:
(i)
Planning leads to rigidity:
▪ In an organisation, a well-defined plan is drawn up with
specific goals to be achieved within a specific time frame that
decide the future course of action and managers may not be in
a position to change it.
▪ This kind of rigidity in plans may create difficulty and
managers need to be given some flexibility to be able to cope
with the changed circumstances.
(ii)
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.
(iii)
Planning involves huge costs:
▪ When plans are drawn up huge costs are involved in their
formulation both in terms of time and money.
▪ Detailed plans require scientific calculations to ascertain facts
and figures.
Or
Q (b) Explain the following points of importance of planning:
(i)
Planning facilitates decision-making
(ii)
Planning establishes standards for controlling
(iii)
Planning promotes innovative ideas
Importance of Planning:
(i)
Planning facilitates decision making:
▪ Planning helps the manager to look into the future and make a
choice from amongst various alternative courses of action.
▪ The manager has to evaluate each alternative and select the
most viable proposition.
(ii)
Planning establishes standards for controlling:
▪ Planning provides the goals or standards against which actual
performance is measured.
▪ By comparing actual performance with some standard,
managers can know whether they have actually been able to
attain the goals. If there is any deviation it can be corrected.
(iii)
Planning promotes innovative ideas:
▪ Planning, being the first function of management, promotes
innovative ideas as new ideas can take the shape of concrete
plans.
▪ It is the most challenging activity for the management as it
guides all future actions leading to growth and prosperity of
the business.
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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.