Question

The future plans of a company manufacturing and marketing smart mobile phones were based on the assumption that the demand for these phones will pick up in the medium to long term. Which important step in the Planning Process does this statement highlight?

Options

• Developing Premises

• Setting objectives

• Identifying alternatives

• Evaluating alternatives

Answer 1

Developing Premises

Explanation:

The statement talks about making plans based on the assumption that demand will increase in the future. In planning, such assumptions about future business conditions are known as premises. Developing Premises is the step in the planning process where assumptions are made about the future business environment — such as market demand, economic trends, and competitor actions.