Q.Sudha and Shweta were twin sisters. After completing their education from college, they decided to start a business. As they were Commerce students, they knew the importance of deciding in advance 'what to do' and 'how to do'. It was very challenging for them as this decision was to guide all their future actions. While discussing the same with their mother, they got a new idea of starting a 'Cloud Kitchen'. Both the sisters were very excited to start this. The idea took the shape of a concrete plan and within a month, they were successful in starting their 'Cloud Kitchen.' Identify the point of importance of planning highlighted in the above case : (A) Planning reduces the risk of uncertainty. (B) Planning promotes innovative ideas. (C) Planning establishes standards for controlling. (D) Planning reduces overlapping and wasteful activities.
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Start your 14-day free trial to unlock the full solution →The case highlights that planning converts an abstract idea into a concrete, actionable plan — this is the importance of planning promoting innovative ideas, making option (B) the correct answer.
The key here is to read the case carefully and match the sequence of events to the specific point of importance of planning. The sisters had an idea (Cloud Kitchen), but it was only after discussing with their mother that the idea “took the shape of a concrete plan.” That transformation — from a vague thought to a detailed, executable blueprint — is exactly what planning does for innovation. It doesn’t just generate ideas; it gives them structure and direction.
Let’s walk through the reasoning step by step.
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Identify the core event in the case.
The sisters already had the idea of a Cloud Kitchen. The turning point is when “the idea took the shape of a concrete plan.” This phrase is crucial — it tells us that planning turned a raw, innovative concept into something workable.
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Match this to the standard points of importance of planning.
In Business Studies (Class 12 CBSE), the importance of planning includes:
- Reduces risk of uncertainty
- Promotes innovative ideas
- Establishes standards for controlling
- Reduces overlapping and wasteful activities
The case does not talk about uncertainty, risk, or controlling. It also doesn’t mention reducing duplication or waste. The entire focus is on how the idea became a concrete plan.
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Eliminate the wrong options.
- (A) Planning reduces risk of uncertainty — No mention of future uncertainty or risk mitigation.
- (C) Planning establishes standards for controlling — No discussion of comparing actual performance with standards.
- (D) Planning reduces overlapping and wasteful activities — No reference to efficiency or avoiding duplication.
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Confirm the correct option. …
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