CUET UG Business Studies Booster Test 2 Meaning and Concept of Planning -

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CUET UG Business Studies Test 2 Meaning and Concept of Planning

⏱️ 30 Minutes

❓ 20 Questions

📌 Answers are locked once submitted — results and explanations appear at the end.

CUET UG Business Studies Test 2 Meaning and Concept of Planning

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QUESTION 1 OF 20

Match the following elements of planning (List 1) with their correct explanations (List 2):

List 1	List 2
1. Pre-requisite to planning	A. Setting objectives first
2. Definition of planning	B. Thinking in advance what to do
3. Dreams to reality	C. Hard work in making predictions and achieving targets
4. Time period	D. Given time frame for plan execution

Answer Review

1 Match the following elements of planning (List 1) with their correct explanations (List 2):

List 1	List 2
1. Pre-requisite to planning	A. Setting objectives first
2. Definition of planning	B. Thinking in advance what to do
3. Dreams to reality	C. Hard work in making predictions and achieving targets
4. Time period	D. Given time frame for plan execution

A 1-B, 2-A, 3-D, 4-C

B 1-D, 2-C, 3-A, 4-B

C 1-A, 2-B, 3-C, 4-D

D 1-C, 2-B, 3-A, 4-D

💡 Short Explanation

Objectives are the starting point (pre-requisite). Planning is defined as thinking before doing. Execution translates mental dreams into actual reality.

✅ Correct Answer Explanation

This matching exercise identifies core planning concepts. 1 matches with A because objectives are the foundation of any plan. 2 matches with B as the standard definition of planning is "thinking in advance." 3 matches with C because the transition from "dreams to reality" requires the hard work of executing predictions. 4 matches with D as every plan must have a specific time duration.

❓ Why Other Options Are Incorrect

Option A → Incorrectly pairs the pre-requisite with the definition.
Option B → Incorrectly suggests a time frame is the pre-requisite.
Option D → Incorrectly suggests hard work is the pre-requisite to starting the planning process.

🎯 Strategy

Used: Option Grouping

Application: By identifying that "Time period" (4) must logically match "Given time frame" (D), we can narrow down choices effectively.

Final Logic: Aligning the primary definition and the temporal requirement confirms the sequence.

🧠 Memory Trick

A-B-C-D: Aim (Objective), Brain (Thinking), Concrete (Reality), Duration (Time).

📚 Class XII – Business Studies – Chapter: Planning – Topic: Meaning and Features

2 A manager at Polaris decides that the company will employ 800 more professionals in the next six months. Before initiating the hiring process, the manager outlines the entire strategy. This action best illustrates which aspect of planning?

A Deciding in advance what to do and how to do it

B Eliminating overlapping activities

C Day-to-day operational controlling

D Formulating historical data

💡 Short Explanation

The manager sets a future goal (800 professionals). A strategy is created before the action starts. This represents the proactive nature of planning.

✅ Correct Answer Explanation

Planning involves setting objectives and developing a course of action to achieve them. By outlining the strategy before hiring begins, the manager is literally deciding "in advance" what the organization's needs are and "how" those needs will be met through a structured hiring process.

❓ Why Other Options Are Incorrect

Option B → While planning helps reduce waste, the focus here is on the initiation of a new goal, not the coordination of existing ones.
Option C → "Controlling" happens after or during the work; this scenario describes the pre-work stage.
Option D → The scenario focuses on a future target (six months), not looking back at historical records.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: The phrase "Before initiating... outlines the entire strategy" directly maps to the temporal definition of planning.

Final Logic: Pre-action strategy formulation is the textbook definition of planning.

🧠 Memory Trick

Plan before Scan: Strategy comes before the hiring process begins.

📚 Class XII – Business Studies – Chapter: Planning – Topic: Meaning

3 Statement I: Before doing something, a manager does not need to formulate an idea of how to work.
Statement II: Planning is closely connected with creativity and innovation as a managerial function.

A Both Statement I and II are true

B Statement I is false, Statement II is true

C Statement I is true, Statement II is false

D Both Statement I and II are false

💡 Short Explanation

Managers must formulate ideas before acting. Planning requires innovative thinking to solve future problems. Statement I contradicts the basic premise of management.

✅ Correct Answer Explanation

Statement I is false because management requires deliberate thought before execution to avoid chaos. Statement II is true because planning is a mental exercise that encourages managers to think differently and find the best, most innovative ways to achieve goals.

❓ Why Other Options Are Incorrect

Option A → Incorrect because Statement I suggests a lack of planning is acceptable.
Option C → Incorrect because it denies the creative nature of the planning process.
Option D → Incorrect because Statement II is a recognized characteristic of effective planning.

🎯 Strategy

Used: Elimination

Application: Statement I is logically flawed for any managerial role, allowing for the immediate elimination of A and C.

Final Logic: Since planning is a mental/innovative task, Statement II must be true.

🧠 Memory Trick

Think to Link: You must think first (Statement I) to be innovative (Statement II).

📚 Class XII – Business Studies – Chapter: Planning – Topic: Planning promotes innovative ideas

4 Assertion (A): Planning has no meaning unless it contributes to the achievement of predetermined goals.
Reason (R): Organizations are set up with a general purpose in view, making planning a purposeful activity.

A A is true but R is false.

B A is false but R is true.

C Both A and R are true, but R is not the correct explanation of A.

D Both A and R are true, and R is the correct explanation of A.

💡 Short Explanation

Planning is goal-oriented. The "purpose" of an organization drives the plan. Reason (R) justifies why Assertion (A) is a requirement.

✅ Correct Answer Explanation

Planning is purposeful. Assertion (A) is true because a plan without a goal is aimless and redundant. Reason (R) is true because organizations exist to achieve specific ends; therefore, the planning function must align with that general purpose to be valid. The purpose of the organization is the "why" behind the goal-oriented nature of planning.

❓ Why Other Options Are Incorrect

Option A → Incorrect because Reason (R) is a fundamental organizational fact.
Option B → Incorrect because Assertion (A) is a core principle of the planning function.
Option C → Incorrect because the "purpose" mentioned in R is exactly what gives planning its "meaning" in A.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Establishing a link between "no meaning" and "purposeful activity" creates a logical bridge.

Final Logic: Goals give planning meaning because the organization itself has a purpose.

🧠 Memory Trick

Purpose = Plan. No purpose means no need for a plan.

📚 Class XII – Business Studies – Chapter: Planning – Topic: Planning focuses on achieving objectives

5 Which of the following is NOT an outcome of setting targets in the planning process?

A It provides direction for all managerial decisions.

B It gives a benchmark against which actual performance is measured.

C It ensures that managers act completely spontaneously without guidelines.

D It lets the manager know where the organization has to go.

💡 Short Explanation

Planning reduces spontaneity by providing a roadmap. Targets act as guides, not as "no guidelines." Spontaneous action is the opposite of planned action.

✅ Correct Answer Explanation

Setting targets is meant to eliminate guesswork and aimless activity. It provides a structured path (Direction), a standard for evaluation (Benchmark), and a clear destination (Where to go). Therefore, saying it encourages "spontaneous action without guidelines" is factually incorrect regarding the nature of planning.

❓ Why Other Options Are Incorrect

Option A → This is a primary benefit; goals tell managers which way to steer.
Option B → True; without targets, there is no standard for the "Controlling" function.
Option D → True; planning bridges the gap to the future destination.

🎯 Strategy

Used: Extreme Word Filter

Application: The word "spontaneously" and "without guidelines" are the opposite of what planning stands for.

Final Logic: Planning is about order and foresight, not randomness.

🧠 Memory Trick

Plan = Path, not Prank. Spontaneity is for pranks; plans need paths.

📚 Class XII – Business Studies – Chapter: Planning – Topic: Importance of Planning

6 Without setting objectives, employees would be working in different directions. How does planning solve this issue?

A By providing clearly stated goals that act as a guide for what action should be taken

B By removing all alternative courses of action

C By eliminating the need for top management

D By focusing purely on past mistakes

💡 Short Explanation

Objectives unify efforts. Planning provides "Direction." It ensures departmental coordination.

✅ Correct Answer Explanation

By stating in advance what the organization wants to achieve, planning provides direction. When goals are clearly defined, employees across different departments understand their roles and work together toward the same end, rather than working at cross-purposes.

❓ Why Other Options Are Incorrect

Option B → Planning actually involves finding alternatives, not removing them.
Option C → Top management is essential to set these very goals.
Option D → While history is considered, planning is primarily "Forward Looking."

🎯 Strategy

Used: Substitution

Application: Replace the problem (different directions) with the solution (one clear guide/direction).

Final Logic: Shared goals result in unified effort.

🧠 Memory Trick

One Goal, One Team.

📚 Class XII – Business Studies – Chapter: Planning – Topic: Planning provides direction

📄 Passage

Category: Course of Action Passage for Q7 and Q8: "Planning involves decision making: Planning essentially involves choice from among various alternatives and activities. If there is only one possible goal or a possible course of action, there is no need for planning because there is no choice. The need for planning arises only when alternatives are available."

According to the passage, when is there absolutely no need for planning?

A When there are multiple goals

B When there is only one possible goal or a possible course of action

C When resources are unlimited

D When the environment is dynamic

💡 Short Explanation

Planning is about choice. If no choice exists, planning is redundant. One path means the decision is already made.

✅ Correct Answer Explanation

The passage explicitly states that if there is only one course of action, there is no need for planning because "there is no choice." Planning is the process of selecting the best among various alternatives. If the "best" is also the "only" option, the mental process of planning becomes unnecessary.

❓ Why Other Options Are Incorrect

Option A → Multiple goals increase the need for planning to prioritize them.
Option C → Even with unlimited resources, planning is needed to avoid waste and manage time.
Option D → A dynamic environment makes planning more critical to anticipate changes.

🎯 Strategy

Used: Substitution

Application: The answer is directly lifted from the provided text snippet ("If there is only one... no need for planning").

Final Logic: Absence of choice equals absence of planning.

🧠 Memory Trick

Choice = Plan. No Choice = No Plan.

📚 Class XII – Business Studies – Chapter: Planning – Topic: Planning involves decision making

📄 Passage

Because planning presupposes the existence of alternatives, what must a manager do in actual practice?

A Randomly select any alternative

B Choose the most complex alternative

C Avoid making any choice to reduce risk

D Conduct a thorough examination and evaluation of each alternative before choosing the most appropriate one

💡 Short Explanation

Rationality requires evaluation. Managers weigh pros and cons (feasibility). The goal is to find the most profitable/efficient path.

✅ Correct Answer Explanation

Since planning involves choice, a manager must act rationally. This involves identifying various ways to achieve a goal and then evaluating each based on its consequences, costs, and benefits. Only after this thorough examination can the most appropriate (optimal) alternative be selected.

❓ Why Other Options Are Incorrect

Option A → Randomness is the opposite of the "Rational Thinking" required in planning.
Option B → Complexity is usually a disadvantage; managers look for efficiency.
Option C → Avoiding choice is "Indecision," which is a failure of the managerial function.

🎯 Strategy

Used: Dimensional/Unit Analysis (Logical Depth)

Application: Assess the professional "depth" of the options. D is the only option that describes a professional managerial process.

Final Logic: Careful evaluation is the core of scientific management.

🧠 Memory Trick

Scan, Score, Select. (Scan alternatives, Score them, Select the best).

📚 Class XII – Business Studies – Chapter: Planning – Topic: Planning Process (Evaluating and Selecting)

9 Arrange the sequence of logical steps a manager takes when making a choice among options during planning:
1. Setting objectives
2. Evaluating alternative courses
3. Identifying alternative courses of action
4. Selecting an alternative

A 1, 2, 3, 4

B 3, 1, 2, 4

C 1, 3, 2, 4

D 3, 2, 1, 4

💡 Short Explanation

You can't plan without a goal (1). You must find options (3) before you judge them (2). Selection (4) is the final decision point.

✅ Correct Answer Explanation

The logical flow of the planning process starts with Setting Objectives (1). Once the goal is known, the manager Identifies Alternatives (3). These alternatives are then Evaluated (2) based on feasibility and consequences. Finally, the manager Selects the best alternative (4).

❓ Why Other Options Are Incorrect

Option A → Evaluation (2) cannot happen before you identify (3) what you are evaluating.
Option B → Identification (3) cannot happen effectively without knowing the objective (1) first.
Option D → Incorrectly places identification at the start and evaluation before setting objectives.

🎯 Strategy

Used: Elimination

Application: Any sequence not starting with "Setting objectives" (1) is incorrect. This eliminates B and D. Between A and C, identification must precede evaluation.

Final Logic: Objectives → Identification → Evaluation → Selection.

🧠 Memory Trick

O-I-E-S: Objective, Identify, Evaluate, Select.

📚 Class XII – Business Studies – Chapter: Planning – Topic: Planning Process

10 A manager uses rational thinking to bridge the gap between the present position and desired goals. Which of the following best reflects this rational approach?

A Developing appropriate courses of action based on predetermined objectives

B Making decisions based solely on intuition and guesswork

C Relying entirely on government policies without internal assessment

D Copying the exact plans of competitor companies

💡 Short Explanation

Rationality implies logic. Planning is a "Mental Exercise." It uses data to bridge the "Gap."

✅ Correct Answer Explanation

A rational approach in planning means using logic and foresight rather than guesswork. It involves looking at where we are (Present), where we want to go (Goal), and systematically developing the steps (Action Plan) needed to get there. This is a deliberate and purposeful intellectual process.

❓ Why Other Options Are Incorrect

Option B → Guesswork is "irrational" and risky; it is the opposite of planning.
Option C → Internal assessment is mandatory for a plan to be feasible; relying only on external policies is incomplete.
Option D → Copying competitors is reactive and doesn't account for the unique strengths/weaknesses of your own firm.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Match the professional tone of "Rational Approach" with "Predetermined Objectives."

Final Logic: Logic-driven action is the definition of rationality in business.

🧠 Memory Trick

Rational = Real Logic. (Avoid guessing or copying).

📚 MCQ Analysis: Questions 11–20

11 Planning is inherently linked to the future period. Which of the following statements does NOT align with this characteristic?

A It involves making business predictions.

B It solely focuses on modifying the past records of the company.

C It meets future events effectively to the best advantage of an organization.

D It anticipates conditions in the environment that may change.

💡 Short Explanation

Planning is "Forward-Looking." Past records are for "Auditing" or "Analysis." Planning uses the past only to predict the future.

✅ Correct Answer Explanation

Planning is futuristic. It involves looking ahead and preparing for the future. While past performance is analyzed to make better future decisions, planning itself "solely focuses" on future actions. Modifying past records is not planning; it is a reporting or accounting function.

❓ Why Other Options Are Incorrect

Option A → Predictions (Forecasting) are essential to the futuristic nature of planning.
Option C → The purpose of planning is to navigate future events successfully.
Option D → Anticipating environmental changes is a core part of strategic foresight.

🎯 Strategy

Used: Extreme Word Filter

Application: The word "solely" combined with "past records" creates a conflict with the futuristic nature of planning.

Final Logic: Planning looks at the windshield (future), not just the rearview mirror (past).

🧠 Memory Trick

Futurism > Pastism.

📚 Class XII – Business Studies – Chapter: Planning – Topic: Planning is futuristic

12 Match the time-related planning attributes in List 1 with their reasoning in List 2:

List 1	List 2
1. Time is a limited resource	A. Requires plans to be drawn based on new requirements at the end of a period
2. Changed environmental conditions	B. Entails peeping into the future and analyzing it
3. Continuous process	C. May cause business plans to go to waste if time factor is ignored
4. Future period	D. Needs to be utilized judiciously

A 1-B, 2-A, 3-D, 4-C

B 1-A, 2-B, 3-C, 4-D

C 1-C, 2-D, 3-B, 4-A

D 1-D, 2-C, 3-A, 4-B

💡 Short Explanation

1. Limited Resource = Need for judicious use (D). 1. Environment change = Waste if time factor ignored (C). 1. Continuous = New plans at period end (A). 1. Future period = Peeping into the future (B).

✅ Correct Answer Explanation

This matching follows economic and managerial logic. 1 matches D because scarcity requires judicious allocation. 2 matches C because if a plan takes too long, the environment changes and the plan becomes obsolete. 3 matches A because planning never stops; once one period ends, the next plan begins. 4 matches B because "Futuristic" means looking ahead.

❓ Why Other Options Are Incorrect

Options A, B, C → These mix up the attributes. For example, A suggests "Time is a limited resource" means "peeping into the future," which doesn't follow logically.

🎯 Strategy

Used: Option Grouping

Application: Identify the most certain pair (1-D). This narrows the answer down to Option D immediately.

Final Logic: Resource scarcity (Time) always leads to the need for judicious use.

🧠 Memory Trick

T-E-C-F: Time (Judicious), Environment (Waste), Continuous (Cycle), Future (Peep).

📚 Class XII – Business Studies – Chapter: Planning – Topic: Features/Meaning

13 Assertion (A): The planning process requires assessing the present position before formulating an action plan.
Reason (R): Planning seeks to bridge the gap between where we are and where we want to go.

A A is true but R is false.

B Both A and R are true, but R is not the correct explanation of A.

C Both A and R are true, and R is the correct explanation of A.

D A is false but R is true.

💡 Short Explanation

"Present position" is "where we are." A bridge needs two solid sides to stand. R provides the structural logic for A.

✅ Correct Answer Explanation

Assertion (A) is true; you cannot create a realistic plan without knowing your current resources and position. Reason (R) is the literal definition of planning's function. Since the goal is to bridge a gap, you must define both ends of the gap (Present and Future), making R the perfect explanation for why A is necessary.

❓ Why Other Options Are Incorrect

Option A → R is factually true according to the definition of planning.
Option B → R is not just true; it is the reason why the present must be assessed first.
Option D → A is a required step in the planning process.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Use the word "Because" between A and R. "We must assess the present because planning bridges the gap from where we are." It is a perfect fit.

Final Logic: Current state assessment is the "Starting Point" for the "Bridge."

🧠 Memory Trick

Know the Start to reach the Heart (Goal).

📚 Class XII – Business Studies – Chapter: Planning – Topic: Meaning

14 Consider the following statements about desired goals in planning:
Statement I: Desired goals serve as the target end-point that planning aims to reach.
Statement II: Actual performance is never measured against these desired goals.

A Statement I is correct and Statement II is incorrect.

B Both statements are correct.

C Statement I is incorrect and Statement II is correct.

D Both statements are incorrect.

💡 Short Explanation

Goals are the destination (Statement I). Goals are the "Standards" for control (Statement II is false). Planning provides the benchmark for measurement.

✅ Correct Answer Explanation

Statement I is correct because planning is goal-oriented. Statement II is false because the primary purpose of setting goals is to have a "standard" or "benchmark." In the "Controlling" function, managers compare actual results against these very goals to see if the plan was successful.

❓ Why Other Options Are Incorrect

Option B → Incorrect because Statement II contradicts the link between Planning and Controlling.
Option C → Statement I is a fundamental truth about planning.
Option D → Statement I is correct.

🎯 Strategy

Used: Elimination

Application: Statement II contains the word "never," which is an extreme word. In management, goals are almost always used for measurement. This invalidates B and C.

Final Logic: Goals = Destination (True) and Measurement Standards (True).

🧠 Memory Trick

Goal = Ruler. You use a ruler to measure (Statement II).

📚 Class XII – Business Studies – Chapter: Planning – Topic: Planning provides standards for controlling

15 In a manufacturing firm, the CEO prepares the broad organizational goals, the factory manager creates departmental plans, and the floor supervisor plans the daily shift routines. This scenario proves that planning is:

A Restricted to top management

B Pervasive across all levels of management

C Only required at the supervisory level

D A continuous process with no scope for supervisors

💡 Short Explanation

Planning happens at Top, Middle, and Lower levels. Different levels have different scopes. This distribution of task is called "Pervasiveness."

✅ Correct Answer Explanation

Pervasiveness means that planning is required at all levels of management and in all departments. The CEO (Top), Factory Manager (Middle), and Supervisor (Lower) are all planning, even if the scale of their plans differs. It is not an exclusive function of any one level.

❓ Why Other Options Are Incorrect

Option A → The scenario clearly shows the supervisor and factory manager planning too.
Option C → The CEO is planning, so it isn't "only" for supervisors.
Option D → The scenario explicitly mentions a floor supervisor planning daily routines, contradicting the "no scope" claim.

🎯 Strategy

Used: Elimination

Application: The presence of multiple management levels (CEO, Manager, Supervisor) all performing the same function (planning) defines pervasiveness.

Final Logic: All levels = Pervasive.

🧠 Memory Trick

Top-Middle-Low: Planning for all to know.

📚 Class XII – Business Studies – Chapter: Planning – Topic: Planning is pervasive

16 If the marketing department creates a sales plan and the production department creates a manufacturing plan, what does this indicate about the scope of planning?

A Planning causes overlapping and wasteful activities across departments.

B Only the production department's plan is valid.

C Planning is an exclusive function of the marketing department.

D Planning is required in all departments, though its scope differs.

💡 Short Explanation

Planning is "Pervasive" across departments. Each department plans for its own specific goals. These plans should ideally be coordinated.

✅ Correct Answer Explanation

Planning is not restricted to a single department. Every functional head must plan for their specific area to contribute to the overall organizational goal. The marketing department plans for revenue, while production plans for supply. This illustrates the universal need for planning across the organizational structure.

❓ Why Other Options Are Incorrect

Option A → Planning actually reduces overlapping by clarifying who does what.
Option B → All functional plans are necessary for the organization to succeed.
Option C → The scenario mentions the production department planning too, so it's not exclusive.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Multiple departments planning confirms the "Pervasive" nature within the organizational structure.

Final Logic: Departmental planning is a universal requirement.

🧠 Memory Trick

Every Dept, Every Level.

📚 Class XII – Business Studies – Chapter: Planning – Topic: Planning is pervasive

17 What is the correct logical flow highlighting the requirement of action in planning?
1. Formulating an action plan
2. Implementing the plan
3. Setting objectives and targets

A 3, 1, 2

B 1, 2, 3

C 2, 3, 1

D 3, 2, 1

💡 Short Explanation

First: Target (3). Second: Method/Plan (1). Third: Execution (2).

✅ Correct Answer Explanation

The logical management process starts with the "End" (Objectives - 3). You then design the "Means" to reach that end (Action Plan - 1). Finally, to achieve results, you must "Act" (Implementation - 2). Action is the step that makes planning useful.

❓ Why Other Options Are Incorrect

Option B → You cannot plan or implement before you have a target (3).
Option C → Implementation (2) cannot be the first step; you'd be acting blindly.
Option D → Incorrectly places implementation before the plan formulation.

🎯 Strategy

Used: Elimination

Application: A goal (3) must always be the first step in a purposeful activity.

Final Logic: Goal → Plan → Act.

🧠 Memory Trick

Ready (Objective) → Aim (Plan) → Fire (Implement).

📚 Class XII – Business Studies – Chapter: Planning – Topic: Planning Process

18 Statement I: A brilliantly crafted plan on paper guarantees success even without proper implementation.
Statement II: Planning will be a futile exercise if it is not acted upon or implemented.

A Both Statement I and II are correct

B Statement I is correct, Statement II is incorrect

C Statement I is incorrect, Statement II is correct

D Both Statement I and II are incorrect

💡 Short Explanation

Paper plans are useless without action. Success depends on execution. Statement I ignores the reality of business effort.

✅ Correct Answer Explanation

Statement I is false because many great plans fail due to poor execution; a plan is only a "guide," not a guarantee. Statement II is correct because the whole point of planning is to achieve a result. If you don't act on the plan, the time and resources spent planning are wasted, making it "futile."

❓ Why Other Options Are Incorrect

Option A → Incorrect because Statement I is a common management fallacy (the belief that planning alone is enough).
Option B → Incorrectly claims that paper plans guarantee success.
Option D → Incorrect because Statement II accurately describes the "futility" of unexecuted plans.

🎯 Strategy

Used: Extreme Word Filter

Application: The word "guarantees" in Statement I is an extreme claim that is rarely true in the volatile world of business.

Final Logic: Plans are necessary but not sufficient for success; action is the missing piece.

🧠 Memory Trick

Action speaks louder than Plans.

📚 Class XII – Business Studies – Chapter: Planning – Topic: Limitations of Planning

19 Match the concepts (List 1) with their corresponding planning focus (List 2):

List 1	List 2
1. Ends	A. How it is to be done
2. Means	B. Between where we are and where we want to go
3. Gap	C. Goals to be achieved
4. Targets	D. What is to be done

A 1-C, 2-B, 3-A, 4-D

B 1-A, 2-D, 3-C, 4-B

C 1-B, 2-C, 3-D, 4-A

D 1-D, 2-A, 3-B, 4-C

💡 Short Explanation

1. Ends = What is to be done (D). 1. Means = How it is to be done (A). 1. Gap = Between present and future (B). 1. Targets = Goals to achieve (C).

✅ Correct Answer Explanation

This matching exercise clarifies terminology. "Ends" (1) refers to the task or finality (D). "Means" (2) is the methodology or action plan (A). "Gap" (3) is the distance between our current and desired states (B). "Targets" (4) are the specific objectives (C).

❓ Why Other Options Are Incorrect

Options A, B, C → These mismatch the fundamental definitions. For example, B suggests "Ends" is "How it is to be done," which is the definition of "Means."

🎯 Strategy

Used: Option Grouping

Application: Match "Means" to "How" (2-A). This immediately points to Option D.

Final Logic: Methodology = Means; Destination = Ends.

🧠 Memory Trick

E-M-G-T: Ends (What), Means (How), Gap (Distance), Targets (Goals).

📚 Class XII – Business Studies – Chapter: Planning – Topic: Meaning

20 When a manager decides "how to do" a task, which aspect of the planning definition are they fulfilling?

A Defining the "Ends" of the organization

B Formulating the "Means" or the action plan

C Determining the "Present position"

D Setting the "Final Objective"

💡 Short Explanation

"How" = Method/Strategy. "Means" is the path to the goal. This is the functional part of a plan.

✅ Correct Answer Explanation

In the planning context, "Ends" are the objectives (the what), and "Means" are the plans or strategies (the how). When a manager focuses on the steps and procedures required to achieve a goal, they are working on the "Means" or the "Action Plan" of the organization.

❓ Why Other Options Are Incorrect

Option A → "Ends" refers to the what, not the how.
Option C → Present position is the starting point, not the procedure.
Option D → The "Final Objective" is synonymous with "Ends."

🎯 Strategy

Used: Contextual/Tonal Matching

Application: The question asks for the "how." "Means" is the only option that logically answers a "how" question.

Final Logic: The method of achievement equals the means.

🧠 Memory Trick

How = Means.

📚 Class XII – Business Studies – Chapter: Planning – Topic: Meaning

CUET UG Business Studies Test 2 Meaning and Concept of Planning

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