In business, a manager is required to make certain assumptions about the future regarding a particular product, demand of that product, tax rates etc. This is called:

Developing premises

The correct answer is option 1- Developing premises.

In business, a manager is required to make certain assumptions about the future regarding a particular product, demand of that product, tax rates etc. This is called Developing premises.

Developing Premises: Planning is concerned with the future which is uncertain and every planner is using conjecture about what might happen in future. Therefore, the manager is required to make certain assumptions about the future. These assumptions are called premises.

OTHER OPTIONS

• Setting Objectives: The first and foremost step is setting objectives. Every organisation must have certain objectives. Objectives may be set for the entire organisation and each department or unit within the organisation.

• Selecting an alternative: This is the real point of decision making. The best plan has to be adopted and implemented. The ideal plan, of course, would be the most feasible, profitable and with least negative consequences.

• Implementing the plan: This is the step where other managerial functions also come into the picture. The step is concerned with putting the plan into action, i.e., doing what is required.