NCERT Solutions for Class 12 Business Studies Chapter 4 Planning

Q. Rama Stationery Mart has made a decision to make all the payments by e-transfers only. Identify the type of plan adopted by Rama Stationery Mart.

Ans. Rama Stationery has adopted a payment ‘policy’ of making all payments by e-transfers. A policy is general statement that aims at channeling the efforts of the organisation in a particular direction.

Q. Why are rules considered to be plans?

Ans. Rules refer to standard or specific statements that inform about what is to be done ‘Rules’ are considered to be ‘Plans’ because both are very similar in nature. Rules are considered to be the simplest of plans. Planning aims at thinking and deciding about the futuristic course of action. Similarly, rules are the statements that help in deciding if an action is to be taken or not. However, rules are rigid in nature and are to be followed as it is unless a change is stated. Non-compliance of the rules lead to disciplinary actions by the organisation. For example, an organisation may have rules regarding the punch-in timings of the employees and every employee of the organisation must follow this rules. Rules act as a guide for general behaviour of the employees in the organisation.

Q. What kind of strategic decisions are taken by business organisations?

Ans. Strategy refers to a board outline for the business of an organisation. It has three broad objectives-to determine the objectives, to decide the course of action, and appropriate allocation of objectives for the achievement of the objectives. Following are a few strategic decisions which a business organisation may look out for. 

  • (i) Deciding about which line of business should be taken.
  • (ii) Whether a new line of production should be adopted or not.
  • (iii) What position should the company aim for in the existing market.
  • (iv) What kind of pricing policy should be used.
  • (v) Decisions regarding the advertising policy and costs.