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‘Renew Ltd.’ was the… (Class 12 Business Studies 2026, Q6)

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Business StudiesCBSE Class 12 · Board exam 2026, set 66/5/1 · 1 mark · MCQ

CBSE Class 12 Business Studies 2026: question 6

Set in the CBSE Class 12 board exam of 2026, paper 66/5/1, section A, question 6, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q6 · 1 mark · MCQCompetency-basedPlanning

‘Renew Ltd.’ was the pioneer in the Electric Vehicles segment and presently has 70% market share. Keeping in mind the rapidly increasing demand for Electric Vehicles due to the rising environment consciousness among people and lower operating costs, the company set a target to increase its market share to 80% in the current year. However, the incentives provided by the government to encourage manufacturing of Electric Vehicles attracted many new players in the market. As this change in the business environment happened suddenly, the company was not able to accurately assess future trends. As a result, the market share of ‘Renew Ltd.’ fell from 70% to 55% in the current year.

Which limitation of planning has been discussed in the above case ?

  1. (A)Planning may not work in a dynamic environment
  2. (B)Planning leads to rigidity
  3. (C)Planning does not guarantee success
  4. (D)Planning involves huge costs

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 66/5/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

Was the problem cost, rigidity or a changing environment?

Hint 2

The change "happened suddenly".

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. A sudden change in the environment (new entrants attracted by government incentives) could not be assessed in advance.

  2. Plans failed because the environment changed: planning may not work in a dynamic environment. Option (A).

    1 mark

Answer: (A) Planning may not work in a dynamic environment

Where the marks are

  • Sudden environmental change defeated the plan (1 mark)

Revise the chapter

  • Chapter: Planning (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Planning, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 66/5/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.