Answer to Question 1
Answer: D
Answer to Question 2
Answer: Numerous studies have looked at the relationship between planning and performance. Although most showed generally positive relationships, we can't say that organizations that formally plan always outperform those that don't plan.
Generally speaking, formal planning is associated with positive financial results higher profits, higher return on assets, and so forth. Also, it seems that doing a good job planning and implementing those plans play a bigger part in high performance than does how much planning is done. Next, in those studies where formal planning didn't lead to higher performance, the external environment often was the culprit. When external forces say, governmental regulations or powerful labor unions constrain managers' options, it reduces the impact planning has on an organization's performance. Finally, the planning-performance relationship seems to be influenced by the planning time frame. It seems that at least four years of formal planning is required before it begins to affect performance.
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