Planning · Class 12 · CBSE · Commerce Business Studies
A company prepares a detailed five-year plan, but a sudden change in government regulations makes its planned production process unsuitable. Manageme…
Practice question from Planning (Class 12 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.
hard · MCQ · Q-5E1C8F
A company prepares a detailed five-year plan, but a sudden change in government regulations makes its planned production process unsuitable. Management must substantially revise the plan. Which limitation of planning is most directly illustrated?
- A.Planning may not work in a dynamic environment.Correct answer
- B.Planning makes objectives impossible to communicate.
- C.Planning completely eliminates business risk.
- D.Planning always reduces the cost of decision-making.
Solution
The business environment is subject to continuous changes in economic, legal, technological and other factors. Consequently, a plan prepared earlier may become unsuitable and require revision.
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