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Business Studies · 2025 · 6 marks
CBSE 2025 · Region 1 · Set 1 · Q32
(a) Explain the following points of importance of 'Planning function of management: (i) Planning provides directions: (ii) Planning promotes…
(a)
Explain the following points of importance of 'Planning
function of management:
(i)
Planning provides directions:
(ii)
Planning promotes innovative ideas.
(iii)
Planning reduces the risk of uncertainty.
OR
(b)
Explain Objectives', 'Rule' and 'Budget' as types of plans.
Objectives
Marking-scheme solution
(i)
Planning provides directions
§ Planning ensures that the goals or objectives are clearly stated
so that they act as a guide for deciding what action should be
taken and in which direction.
§ If goals are well defined, employees are aware of what the
organisation has to do and what they must do to achieve those
goals.
(ii)
Planning promotes innovative ideas
§ Planning 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.
(iii)
Planning reduces the risk of uncertainty
§ Planning is an activity which enables a manager to look
ahead and anticipate changes.
§ By deciding in advance the tasks to be performed, planning
shows the way to deal with changes and uncertain events.
Changes or events cannot be eliminated but they can be
anticipated and managerial responses to them can be
developed.
§ Objectives are the ends, which the management seeks to
achieve. They are usually set by top management of the
organisation and focus on broad, general issues.
§ Objectives need to be expressed in specific terms i.e. they
should be measurable in quantitative terms and are to be
achieved within a given time period.
Rule
§ Rule is a specific statement that informs what is to be done and
not to be done. It does not allow for any flexibility or
discretion.
§ It reflects a managerial decision that a certain action must or
must not be taken.
Budget
§ A budget is a statement of expected results expressed in
numerical terms. It is a plan which quantifies future facts and
figures.
§ Since budget represents all items in numbers, it becomes easier
to compare actual figures with expected figures and take
corrective action.
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CBSE Class 12 Business Studies past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.