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CBSE Guess > eBooks > Class XII > Business Studies by Dorothy Mathias

Chapter – 4 Planing (6 Marks)

Unsuitable:

In planning there are set policies, procedures to be strictly followed under all circumstances. However, this is against the very concept of business. Business is a dynamic activity faced with opportunities and problems. If it follows a set course of action, there may be risks of failure.

Time consuming:

Planning requires time to think, analyze the situation and then design the final plan. In case of emergencies it is necessary to take on the spot decisions. In such situations, time is a precious commodity and any delay caused by planning may deprive the business of a profitable opportunity.

Explain in brief, the meaning of “Goals & Objectives & Rules” as types of plans and give any four examples of each.

Or

Explain the types of plans? – This Q comes as a choice

“Goals” are collective ends towards that an organization direct their energies and activities.
Examples:

1. The goal of a car company can be to provide good quality and economically priced automobiles to the public.
2. Improvement in communication system
3. Improvement in customer relationship
4. Improvement in sales of specific product

“Objectives” are the ends towards which activity is aimed. They are the results to be achieved. An objective should meet the following five requirements –

1. It should relate to a single specific topic
2. It should relate to a result and not to an activity to be performed
3. It should be measured in quantitative terms whenever feasible
4. It should have a deadline for achievement

“Rules” are rigid instructions. They are specific statements and guide to behaviour. They indicate what should and should not be done. In rules, there is no scope for discretion.

Explain the term “policy” and procedure” as types of plans and give any four points of distinction between them. – 6 marks

“ Policy is a general statement of an organization which specifies its intention to respond to a specific problem or situation “.

Example: McDonald has a policy that it will not grant franchise to an individual who already owns another fast food restaurant.

Likewise a school admission office may have a policy that admission will be granted only to those applicants who have secured 60% and above

“Procedure” is a guide to action. It contains steps in chronological order for handling future activities.

Example: McDonald has a procedure that explains exactly how Big Macs are to be cooked, how long they can stay in the warming rack, etc.

Distinguish between (Any four points): 6 marks

Marking Scheme – Policies and Rules (Important)