(i) Planning reduces the risks uncertainity Planning is always done for future and future is uncertain. With the help of planning, possible changes in future are anticipated and various activities are planned in the best possible way. 
(ii) Planning involves huge costs When plans are drawn up, huge costs are involved in their formulation. These may be in terms of time and money. According to Koontz and O' Donnell, "Expenses on planning should never exceed the estimated benefits from planning". 

(i) Provide useful insight into reality The principles of management provide useful insight into real world situations. Managers may apply these principles to fulfil their tasks and responsibilities. These principles guide the managers in taking and implementing thoughtful decisions.
(ii) Thoughtful decision-making These principles help in enhancing knowledge, ability and understanding of managerial situations and circumstances. They must be timely, realistic and subject to measurement and evaluation. They emphasise logic rather than blind faith and are free from bias and prejudice.

Yes, the environment provides us with both constraints and opportunities such as economic conditions, customs, government regulations, availability of natural resources, labour supply etc. For example, despite many initiatives, foreign direct investment in India is not picking up (like China) in the country due to political and bureaucratic reasons.
On the other hand, environment offers the firm numerous opportunities due to changing needs of customers and markets. For example, the growing demand for air conditioners has attracted many domestic new-comers (Godrej, Kirloskar etc.) as well as multinationals (LG Electronics, Whirlpool, Electrolux etc.) into the industry.

Management as a profession: Profession means occupation that requires specialised knowledge and a practice of formal education, which is acquired from the respective professional body. The basic features of a profession are:
(i) Systematised body of knowledge: A profession is based on a systematised body of knowledge.
(ii) Restricted entry: Entry into a profession is restricted through an examination or degree.
(iii) Professional association: All professionals are bound to be a part of a professionals are subject to an ethical code of conduct.
(iv) Code of conduct: All professionals are subject to an ethical code of conduct.
(v) Service motive: The basic motive of each professional is to render committed service to the society.
Following points clarify whether management is a profession or not:
(i) Like profession, management has well defined body of knowledge. It has its own principles, which are based on experiments.
(ii) In  management, no such restriction is there for managers to clear an examination or hold a degree.
(iii) In management, no such rules and regulations are framed to guide the managers.
(iv) Membership to a professional association like AIMA, is not mandatory for managers.
(v) All managers, directly or indirectly work for the development of society.
Conclusion: Thus, management does not possess all the essential attributes of a profession. No doubt, management though not a full fledged profession, is emerging as a profession. 

The limitations of planning function of management are:
(a) Leads to rigidity. The existence of a plan puts managerial activities in a rigid framework. Programmes are carried out according to the plan and deviations are considered to be highly undesirable. This attitude makes managers and employees inflexible in their operation. They become more concerned with observance of rules and procedures as laid down in the plan rather than achieving the goals.
(b) Reduces creativity. People in the organisation just implement the plans made by top management. They blindly implement the orders which results in loss of initiative and interest in them. Thus, planning reduces creativity as there is nothing new or innovative.
(c) Involves huge costs. Huge costs are involved in the formulation of plans which may not justify the benefits derived from the plans. Money is spent on incidental costs like expenses on boardroom meetings, discussions with professional experts etc.

(a) Coordination
(b) The importance of coordination is as follows:
(i) Growth in size. With the growth of an organisation in size, the number of its employees also increases. All the individuals differ in their habits of work, background and attitude. It is through coordination that a manager harmonise individual and organisational goals.
(ii) Functional differentiation. An organisation may have departments based on different functions. These departments have their own objectives, policies and style of working. The activities of each department has to be focused on attainment of common organisational goals. Coordination links the activities of different departments.
(iii) Specialisation. An organisation needs to employ number of specialists, who usually think, evaluate and judge according to their professional criteria. It can lead to conflict amongst different specialists. Coordination reconcile the differences in approach, interest and opinion of the specialists.

Various dimensions of business environment affected are:
(i) Rise in living standards affect social environment 
The social environment consists of all the social and cultural forces within which business firms operate. It comprises of customs and traditions, values, social trends, etc.
For example,  Traditions refers to such social practices that are followed for decades. Traditions like celebrations of festivals provide greater opportunities to business like confectionary, sweets, greeting cards, gift galleries, etc.
(ii) Increasing income affect economic environment 
The economic environment consists of the factors and forces concerning with means of production and distribution of wealth.
It compromises of interest rate, rate of inflation, value of GDP, per capita income, tax rates, disposable income, etc. For example, With an increase in the inflation rates, there is a rise in the cost of production. This affects the profits of the business adversely.
(iii) Liberalization policy is an element of legal environment 
Business has to function within the framework of laws and regulations of the country. Legal environment includes various legislations passed by the government, court judgments, decisions of various commissions and agencies at every level of administration.
Non-compliance of these regulations can create legal problem for business enterprises. A number of laws have been implemented by the government through the enactment of the Companies Act, Foreign Exchange Management Act, Factories Act, Competitions Act, etc.
For example,  The advertisement of alcoholic beverages is prohibited, which affects the marketing of such products.
(iv) Favourable attitude of government is an element of political environment 
The political environment consists of the forces concerning management of public affairs and their impact on business. It includes political conditions in the country and attitude of the government towards business and business policy
 For example,  Decisions regarding offering subsidy to the producers give a boost to such industries.

Liberalisation
It means freedom of business and industry from the unnecessary controls and restrictions of the government. Some reforms  undertaken under liberalisation were:
(i) Abolition of licensing in most industries.
(ii) Freedom to decide the scale of business.
(iii) Freedom to decide prices of products.
(iv) Dereservation of public sector enterprises.

1. (a) Enables a firm to identify opportunities and getting first-mover advantage.
2. (b) Specific and general forces
3. (b) Social Environment 
4. (c) Coca-Cola Avocado

1. (b) Division of work
2. (a) Centralization and Decentralisation 
3. (a) Discipline
4. (c) Equity

d) Assertion (A) is False but Reason (R) is true.

c) Assertion (A) is true but Reason (R) is False.

b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

c) Assertion (A) is true but Reason (R) is False.