Match List-I (lines about the planning process) with List-II (the ste…

Match List-I (lines about the planning process) with List-II (the step they belong to):

List-I		List-II
(A)	Accurate forecasts in conditions of certainty or uncertainty become assumptions for the financial proposals being studied.	(I)	Identifying alternative courses of action
(B)	Forecasting is important as it is a technique of gathering information.	(II)	Developing premises
(C)	The ideal plan would be the most feasible, profitable and with least negative consequences.	(III)	Selecting an alternative
(D)	If the project is important, then more alternatives should be generated and thoroughly discussed.	(IV)	Evaluating alternative courses

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A)-(IV), (B)-(II), (C)-(III), (D)-(I)

List-I	List-II	Reason
(A) Accurate forecasts in conditions of certainty or uncertainty become assumptions for the financial proposals being studied.	(IV) Evaluating alternative courses	Financial proposals are weighed with the help of forecasts while their pros and cons are judged.
(B) Forecasting is important as it is a technique of gathering information.	(II) Developing premises	Premises are assumptions about the future. Forecasting gathers the information on which they are made.
(C) The ideal plan would be the most feasible, profitable and with least negative consequences.	(III) Selecting an alternative	This describes the best plan to be chosen at this step.
(D) If the project is important, then more alternatives should be generated and thoroughly discussed.	(I) Identifying alternative courses of action	At this step the manager finds the different ways to act. An important project needs more of them.

NCERT (2026-27 Edition): “(ii) 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. Assumptions are the base material upon which plans are to be drawn. The base material may be in the form of forecasts, existing plans or any past information about policies. The premises or assumptions must be the same for all and there should be total agreement on them. All managers involved in planning should be familiar with and use the same assumptions. For example, forecasting is important in developing premises as it is a technique of gathering information. …”

“(iii) Identifying alternative courses of action: Once objectives are set, assumptions are made. Then the next step would be to act upon them. There may be many ways to act and achieve objectives. All the alternative courses of action should be identified. The course of action which may be taken could be either routine or innovative. An innovative course may be adopted by involving more people and sharing their ideas. If the project is important, then more alternatives should be generated and thoroughly discussed amongst the members of the organisation.”

“(iv) Evaluating alternative courses: The next step is to weigh the pros and cons of each alternative. Each course will have many variables which have to be weighed against each other. The positive and negative aspects of each proposal need to be evaluated in the light of the objective to be achieved. In financial plans, for example, the risk-return trade-off is very common. The more risky the investment, the higher the returns it is likely to give. To evaluate such proposals detailed calculations of earnings, earnings per share, interest, taxes, dividends are made and decisions taken. Accurate forecasts in conditions of certainty/uncertainty then become vital assumptions for these proposals. …”

“(v) 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. Most plans may not always be subjected to a mathematical analysis. In such cases, subjectivity and the manager’s experience, judgement and at times, intuition play an important part in selecting the most viable alternative.”