What are the limitations of Planning as faced by business executives? Planning is not a substitute for executive judgment but merely an aid to it. It does not guarantee success. It suffers from the following limitations:
A number of defects in the organization of these activities are as follows: Some schools organize a few activities. They do not provide for a sufficient variety of activities to suit the varied interests and abilities of pupils.
Psychological tests, especially intelligence tests are widely used tools. The effectiveness of a tool depends on the skill, scientific knowledge, and competence of its users.
Statistics is indispensable to almost all sciences - social, physical and natural. It is very often used in most of the spheres of human activity. In spite of the wide scope of the subject it has certain limitations. Some important limitations of statistics are the following:
The Law of Equi-marginal Utility suffers from several limitations, which come in the way of its implementation by the consumer. Briefly speaking these are as follows;
Though banks would like to have an unlimited capacity to create credit so as to add to their profit income, in practice they face several hurdles in doing so. These limitations manifest themselves in converting additional credit creation into a non-profitable activity. Thus, a bank would keep creating additional credit so long as:-
Card index was developed by a French person called Jean Rozier. Each subject or customer is allotted with a separate card on which required information is written back. These similar sized cards are arranged in order. These cards are put in the drawer through a rod to hold them together. The limitations of card index are:
We have just listed the uniqueness of human body, but along with this, there are some limitation as well. These can be summarized as follows: Man is deprived of tail which serves as a balancing organ in animals that have it.
The following are the limitations of the method of variable cash reserve ratio, such as this method is not effective when the commercial banks keep very large excessive cash reserves. In such a case ever if cash reserve 'ratio is raised, ample reserves remain after satisfying the minimum requirements.
Theoretically, the banking system can create unlimited amount of credit through expansion of deposits. However, in reality, the powers of banks to create multiple credit or deposits arc subject to a number of limitations as explained below: