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:
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:
Solution
Option 1 -> Developing premises involves making assumptions and forecasts about future conditions like demand, tax rates, competition, and market trends that serve as the foundation for planning.
Option 2 -> Setting objectives refers to defining specific goals and targets that the organization aims to achieve, not making assumptions about future conditions.
Option 3 -> Selecting an alternative plan means choosing the best course of action from multiple options after evaluation, not establishing assumptions.
Option 4 -> Implementing the plan is the execution phase where the chosen plan is put into action, not the stage of making future assumptions.
Hence, Option 1: Developing premises -> Premises are the assumptions and forecasts about future events and conditions (such as product demand, tax rates, market trends, competition, etc.) that form the planning environment. This is a critical step in the planning process as it establishes the foundation upon which all plans are built. Without proper premises, planning would lack direction and realism -> correct
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