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Home/Practice questions/Business Studies
Business StudiesPlanning

Since the future cannot be predicted with absolute accuracy, ______ p…

Since the future cannot be predicted with absolute accuracy, ______ premises may not be fully reliable.

Answer & explanation+

Correct answer: option 2

The correct answer is Option (2) → Planning

  • Option (1) Delegating — Incorrect. Delegation means giving authority to a subordinate. It does not depend on guesses about the future.

  • Option (2) Planning — Correct. Planning is about the future, and the future is uncertain. So the planner has to make assumptions about the future. These are called planning premises. The future cannot be predicted exactly, so these premises can go wrong. This is a limitation of planning: it is hard to judge future trends correctly, so planning may not work when things keep changing.

  • Option (3) Coordination — Incorrect. Coordination links the work of different departments. There is nothing called coordination premises.

  • Option (4) Controlling — Incorrect. Controlling checks what has actually happened against the standards. Premises belong to the planning process.

NCERT (2026-27 Edition): “Planning Process … (ii) Developing Premises: Planning is concerned with the future which is uncertain and every planner is using conjecture about what might happen in future.”

“Limitations of Planning … (ii) Planning may not work in a dynamic environment: The business environment is dynamic, nothing is constant. The environment consists of a number of dimensions, economic, political, physical, legal and social dimensions. The organisation has to constantly adapt itself to changes. It becomes difficult to accurately assess future trends in the environment if economic policies are modified or political conditions in the country are not stable or there is a natural calamity. …”

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