Question

Which of the following is a feature of planning in Business Studies?

• A. It eliminates all risks completely
• B. It is a mental exercise
• C. It discourages innovation
• D. It is unnecessary in dynamic environments

Hint:

Remember: Planning = Thinking before doing. It is mainly an intellectual activity of managers.

Answer 1

The Correct Option is B

Concept: Planning is one of the primary functions of management. It involves deciding in advance what is to be done, how it is to be done, when it is to be done, and by whom it is to be done. It is an intellectual and analytical process because managers have to think carefully before taking decisions.

Step 1: Understanding the meaning of planning.
Planning requires managers to analyze situations, evaluate alternatives, forecast future conditions, and make rational decisions. Therefore, planning mainly involves thinking and decision-making.

Step 2: Evaluating the options.
(A) Incorrect because planning cannot eliminate risks completely; it only reduces uncertainty.
(B) Correct because planning is an intellectual or mental exercise.
(C) Incorrect because planning actually promotes innovation by encouraging new ideas and better methods.
(D) Incorrect because planning becomes even more important in dynamic environments.

Step 3: Final conclusion.
Hence, the correct answer is: \[ \boxed{\text{(B) It is a mental exercise}} \]