Assertion (A): Planning reduces the risks of uncertainty.
Reason (R): Planning enables a manager to look ahead and anticipate changes, so that managerial responses to them can be developed.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Both (A) and (R) are true and (R) is the correct explanation of (A).
Assertion (A): Planning reduces the risks of uncertainty. — True. This is one of the benefits of planning. It helps the firm deal with changes and uncertain events.
Reason (R): Planning enables a manager to look ahead and anticipate changes, so that managerial responses to them can be developed. — True. A plan is made for the future. While making it, the manager thinks ahead about likely changes and prepares a response.
Why R explains A?
Changes cannot be stopped, but they can be seen coming. R says the manager foresees the change and keeps a response ready. So when the change comes, the firm is not caught unprepared, and the loss is smaller. This lower risk is the benefit that A names.
NCERT (2026-27 Edition): “(ii) Planning reduces the risks of uncertainty: Planning is an activity which enables a manager to look ahead and anticipate changes. By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events. Changes or events cannot be eliminated but they can be anticipated and managerial responses to them can be developed.” |