Step 1: Identify the context.
The sentence describes how the use of systematic and exact planning techniques affects firms’ predictions and mistakes. The overall direction is positive (improvement in prediction, reduction in mistakes).
Step 2: Analyze the first blank.
We need a phrase showing negative consequences of over-reliance on planning. "Progressive deterioration" fits better than "development" or "growth," because the sentence implies problems caused by excessive reliance.
Step 3: Analyze the second blank.
Planning techniques are described as systematic and exact. The synonym “precise” fits well here. Options with “exact” also make sense, but “precise” collocates better with systematic planning.
Step 4: Third blank Effect on notions).
The sentence indicates firms now have better understanding of future events. So the word should be “improvement,” not decline or increase.
Step 5: Fourth blank (incidence of mistakes).
Better planning and improved notions about the future should lead to a reduction in mistakes. So the correct word is “reduction.”
Step 6: Fifth blank (modern corporations).
The context emphasizes the scale of these effects. Thus “large” corporations is correct, not “tiny.”
\[
\boxed{\text{progressive deterioration, precise, improvement, reduction, large}}
\]