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Business Studies · 2026 · 6 marks
CBSE 2026 · Region 4 · Set 3 · Q32
(a) Explain the following points of importance of planning: (i) Planning facilitates decision-making (ii) Planning establishes standards for…
(a)
Explain the following points of importance of planning :
(i)
Planning facilitates decision-making
(ii)
Planning establishes standards for controlling
(iii)
Planning promotes innovative ideas
OR
(b)
Explain the following points of importance of delegation :
(i)
Facilitation of growth
(ii)
Basis of management hierarchy
(iii)
Better coordination
Marking-scheme solution
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 the actual
• performance is measured.
It is a prerequisite for controlling. If there were no goals and
standards, then finding deviations which is a part of controlling
would not be possible.
• (iii) Planning promotes innovative ideas:
Since planning is the first function of management, 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.
Explain the following points of importance of delegation :
(i)
Facilitation of growth
(ii)
Basis of management hierarchy
(iii)
Better coordination
Importance of delegation:
• (i) Facilitation of growth:
Delegation helps in the expansion of an organisation by providing a
• ready workforce to take up leading positions in new ventures.
Trained and experienced employees are able to play significant roles
in the launch of new projects by replicating the work ethos they have
absorbed from existing units, in the newly set up branches.
• (ii) Basis of management hierarchy:
Delegation of authority establishes superior subordinate
• relationships, which are the basis of hierarchy of management.
It is the degree and flow of authority which determines who has to
report to whom. The extent of delegated authority also decides the
power that each job position enjoys in the organisation.
• (iii) Better coordination:
The elements of delegation, namely authority, responsibility and
accountability help to define the powers, duties and answerability
• related to the various positions in an organisation.
This helps to avoid overlapping of duties and duplication of effort as
well as gives clarity in reporting relationships, and develop effective
coordination amongst the departments, levels and functions of
management.
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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.