CUET UG Business Studies Booster Test 2 Importance and Limitations of Controlling -

🚀

CUET UG Business Studies Test 2 Importance and Limitations of Controlling

⏱️ 30 Minutes

❓ 20 Questions

📌 Answers are locked once submitted — results and explanations appear at the end.

CUET UG Business Studies Test 2 Importance and Limitations of Controlling

1 / 20

QUESTION 1 OF 20

Controlling is considered a primary function of every manager. Which of the following statements is NOT true regarding the organisational role of controlling?

Answer Review

1 Controlling is considered a primary function of every manager. Which of the following statements is NOT true regarding the organisational role of controlling?

A It is pervasive across top, middle, and lower management.

B It is required in non-business organisations like hospitals and clubs.

C It implies that planning without controlling is a complete management cycle.

D It helps in formulation of future plans.

💡 Short Explanation

Planning and controlling are inseparable; one is useless without the other. Controlling provides feedback that completes the management loop. A cycle is \"incomplete\" if results are not monitored against plans.

✅ Correct Answer Explanation

�� According to NCERT, planning and controlling are \"inseparable twins\" of management. Statement C is incorrect because planning without controlling is a half-done job; it sets goals but never checks if they are met. Controlling is what actually completes the management cycle by comparing actual results with planned goals and feeding that information back into the next planning stage.

❓ Why Other Options Are Incorrect

Option A → Correct; controlling is pervasive and performed by managers at all levels.
Option B → Correct; management functions apply to all organizations, including social and service institutions.
Option D → Correct; by analyzing deviations, controlling provides the data needed to set better plans for the future.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Management is defined as a circular process. Any statement suggesting a \"complete cycle\" without a checking mechanism (control) is logically flawed. Final Logic: Controlling is the bridge that turns a linear process into a continuous cycle.

🧠 Memory Trick

Planning + Controlling = Complete Cycle.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Meaning and Importance

2 Assertion: Controlling completes one cycle of the management process and improves planning in the next cycle.
Reason: Controlling acts as a postmortem of past activities but aims to improve future performance.

A Both Assertion and Reason are true, but Reason is not the correct explanation.

B Assertion is true, but Reason is false.

C Both Assertion and Reason are true, and Reason is the correct explanation.

D Both Assertion and Reason are false.

💡 Short Explanation

Controlling is backward-looking as it reviews past performance. It is forward-looking as it guides future action. The \"postmortem\" provides the data for \"future improvement.\"

✅ Correct Answer Explanation

�� The Assertion is true because controlling identifies where things went wrong in the current cycle. The Reason explains this perfectly: by acting as a \"postmortem\" (analyzing what has already happened), it provides lessons and data that managers use to refine and improve the planning of the \"next cycle.\" This dual nature (looking back to look forward) is a core NCERT concept.

❓ Why Other Options Are Incorrect

Option A, B, & D → These are incorrect because the Reason directly supports the Assertion by explaining the \"how\" and \"why\" behind the improvement of the management cycle.

🎯 Strategy

Strategy Used: Dimensional/Unit Analysis Application: Analyzing the time dimensions—Controlling is both \"Backward-looking\" (postmortem) and \"Forward-looking\" (planning improvement). Final Logic: The analysis of the past is the only way to systematically improve the future.

🧠 Memory Trick

Backward Look for Forward Progress.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Relationship between Planning and Controlling

3 A manager observes that a project is running behind schedule and immediately assigns additional workers and permits overtime. By taking this corrective action, what core objective of controlling is the manager directly fulfilling?

A Setting qualitative standards.

B Assuring attainment of objectives according to plans.

C Minimising dishonest behaviour.

D Increasing employee resistance.

💡 Short Explanation

Corrective action is taken to fix deviations. The goal is to bring results back in line with the schedule. It ensures the organizational goal is met.

✅ Correct Answer Explanation

�� The primary importance of controlling is \"Accomplishing organizational goals.\" When a manager sees a deviation (running behind schedule) and takes action (overtime/extra staff), they are performing the \"Taking Corrective Action\" step of the control process. This ensures that the original plan/objective is still achieved despite the initial delay.

❓ Why Other Options Are Incorrect

Option A → Setting standards happens before monitoring, not during corrective action.
Option C → There is no mention of theft or dishonesty in the case; it is a time-management issue.
Option D → While workers might resist overtime, this is a negative limitation/by-product, not a manager\'s \"objective.\"

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Match the manager\'s action (fixing a delay) with the functional outcome (attaining the goal). Final Logic: Corrective action is the mechanism used to protect the plan\'s success.

🧠 Memory Trick

Corrective Action = Attainment of Goals.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Importance of Controlling

4 Statement 1: Planning without controlling is meaningless.
Statement 2: Controlling is blind without planning because plans provide the standards of performance.

A Both Statement 1 and Statement 2 are true.

B Statement 1 is true, but Statement 2 is false.

C Both Statement 1 and Statement 2 are false.

D Statement 1 is false, but Statement 2 is true.

💡 Short Explanation

Without control, there is no follow-up on plans. Without plans, there is no yardstick for control. They are interdependent functions.

✅ Correct Answer Explanation

�� Statement 1 is true because planning is just \"thinking\" unless you have controlling to ensure it is \"done.\" Statement 2 is true (and a classic NCERT phrase) because you cannot \"check\" (control) unless you have something to check against (the standards provided by the plan). If you don\'t know where you are going (Plan), you can\'t tell if you are lost (Control).

❓ Why Other Options Are Incorrect

Options B, C, & D → These are incorrect because both statements correctly describe the symbiotic relationship between these two functions.

🎯 Strategy

Strategy Used: Option Grouping Application: Both statements represent two sides of the same coin (Interdependence). They must both be true for the logic of management to hold. Final Logic: No goal = No measurement; No measurement = No result.

🧠 Memory Trick

Plan = Eyes; Control = Walking. You need both to reach a destination.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Relationship between Planning and Controlling

📄 Passage

Category: Standards Check Passage for Q5 & Q6: \"It is important that standards should be flexible enough to be modified whenever required. Due to changes taking place in the internal and external business environment, standards may need some modification to be realistic in the changed business environment. Step 2: Measurement of Actual Performance: Once performance standards are set, the next step is measurement of actual performance. Performance should be measured in an objective and reliable manner.\"

Based on the passage, why must the accuracy of standards be checked and remain flexible?

A Because quantitative standards are impossible to set.

B To be realistic in the face of changes in the internal and external business environment.

C So that actual performance is never measured.

D Because employee morale changes daily.

💡 Short Explanation

The business environment is dynamic. Old standards may become obsolete. Flexibility allows standards to stay relevant.

✅ Correct Answer Explanation

�� The passage explicitly states that standards need modification to be \"realistic in the changed business environment.\" Both internal factors (like machinery) and external factors (like government policy) change. If standards are rigid and \"frozen,\" they will no longer accurately judge performance in the current context.

❓ Why Other Options Are Incorrect

Option A → Quantitative standards are possible and preferred.
Option C → Flexibility is meant to improve measurement, not eliminate it.
Option D → While true, morale is a qualitative factor and not the primary reason cited for environmental flexibility in the passage.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Extracting the specific reasoning provided in the text (\"due to changes taking place...\"). Final Logic: A dynamic environment requires a dynamic benchmark.

🧠 Memory Trick

Flexible standards = Realistic goals.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Controlling Process

📄 Passage

According to the passage, what must follow once standards have been successfully set or revised?

A Eliminating the planning phase.

B Reverting back to setting external policies.

C Resisting employee feedback.

D Measurement of actual performance in an objective and reliable manner.

💡 Short Explanation

Controlling is a step-by-step process. Step 1: Set Standards. Step 2: Measure Actual Performance.

✅ Correct Answer Explanation

�� The passage clearly labels the next phase as \"Step 2: Measurement of Actual Performance.\" This follows logically: once you have the \"yardstick\" (the standard), the next immediate action is to use that yardstick to measure the \"work actually done.\"

❓ Why Other Options Are Incorrect

Option A → Controlling depends on planning; it never eliminates it.
Option B → Managers respond to policies, they don\'t \"revert to setting\" external ones.
Option C → Feedback is essential for the cycle to continue.

🎯 Strategy

Strategy Used: Sequential Logic Application: Following the \"Process of Controlling\" flow: Standard → Measurement → Comparison → Action. Final Logic: You can\'t compare until you measure.

🧠 Memory Trick

Standard first, Measure next.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Controlling Process

7 Arrange the following steps logically to show how controlling improves resource efficiency:
1. Manager compares actual resource use against predetermined norms.
2. Manager establishes specific norms for resource consumption.
3. Corrective action is taken to reduce identified spoilage.
4. Activities are performed, and resource usage is measured.

A 2, 4, 1, 3

B 1, 2, 3, 4

C 4, 3, 2, 1

D 2, 1, 4, 3

💡 Short Explanation

1. Set Norms (Standard). 1. Perform & Measure (Actual). 1. Compare (Deviation). 1. Fix (Action).

✅ Correct Answer Explanation

�� To improve efficiency, you first need a target: Establish norms (2). Then, the work is performed and measured (4). Next, you compare the reality with the norms to see if resources were wasted (1). Finally, you take corrective action to stop that wastage (3). This follows the standard 4-step controlling process.

❓ Why Other Options Are Incorrect

Options B, C, & D → These sequences violate the logical flow. You cannot take corrective action (3) before comparing (1), and you cannot compare before establishing norms (2).

🎯 Strategy

Strategy Used: Elimination Application: Every control process must start with setting standards (2). Only options A and D start with 2. Looking at the next step, you must measure (4) before you can compare (1). Final Logic: Standards → Measurement → Comparison → Correction.

🧠 Memory Trick

Standard, Measure, Compare, Correct (S-M-C-C).

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Controlling Process

8 In an assembling task, how can efficiency be best improved and tracked during the performance of the task?

A By calculating net profit ratio at the end of the year.

B By surveying employee job satisfaction.

C By checking each part produced before assembling.

D By monitoring external government policies.

💡 Short Explanation

Real-time control prevents cumulative errors. Checking parts reduces wastage during assembly. Continuous monitoring is better for operational tasks.

✅ Correct Answer Explanation

�� For an operational task like assembly, tracking is most effective when done \"on the spot.\" Checking each part (Option C) ensures that defective pieces are not used, thereby reducing \"wastage and spoilage.\" This is a direct application of the \"Making Efficient Use of Resources\" importance of controlling.

❓ Why Other Options Are Incorrect

Option A → This is \"post-control\" and too late to fix assembly-line inefficiencies.
Option B → Morale is important, but it doesn\'t directly track the physical efficiency of the task.
Option D → Government policies are external factors and don\'t provide a way to track internal assembly efficiency.

🎯 Strategy

Strategy Used: Dimensional/Unit Analysis Application: The question asks for tracking \"during the performance.\" Only Option C represents an active, concurrent control measure. Final Logic: Catch the error at the source to save resources.

🧠 Memory Trick

Check at the start, save the part.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Importance of Controlling

9 Match the functional area with the appropriate performance standard it uses to motivate and gauge employee efficiency.

List I	List II
1. Production	A. Labour turnover
2. Marketing	B. Liquidity
3. Human Resource Management	C. Sales volume
4. Finance and Accounting	D. Quality

A 1-B, 2-C, 3-D, 4-A

B 1-A, 2-B, 3-C, 4-D

C 1-C, 2-D, 3-A, 4-B

D 1-D, 2-C, 3-A, 4-B

💡 Short Explanation

Production = Quality of goods. Marketing = Quantity of sales. HR = Employee retention (Labour turnover). Finance = Cash flow (Liquidity).

✅ Correct Answer Explanation

�� Production focuses on the standard of the product (Quality). Marketing is gauged by the Sales volume generated. HR Management uses Labour turnover to see if employees are satisfied and staying. Finance looks at Liquidity to ensure the company has enough cash to meet obligations.

❓ Why Other Options Are Incorrect

Options A, B, & C → These misplace the metrics (e.g., putting Liquidity in Production or Labour Turnover in Finance).

🎯 Strategy

Strategy Used: Substitution Application: Match the most obvious pair (Production = Quality or Finance = Liquidity) and find the option that contains it. Final Logic: Functional areas have specific KPIs (Key Performance Indicators).

🧠 Memory Trick

Production = Quality; Finance = Liquidity.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Controlling Process (Setting Standards)

10 Fast food chain \'Z\' wants to motivate employees by setting clear, measurable qualitative standards for customer satisfaction. How should they define these standards to make measurement easier?

A By setting standards in terms of time taken by a customer to wait for a table and place an order.

B By generally asking employees to \"be nicer\" to customers.

C By reducing defects to 5 in every 1000 pieces produced.

D By installing hidden cameras in the break room.

💡 Short Explanation

Qualitative standards are hard to measure. Converting them to quantitative terms (Time) makes them objective. \"Wait time\" is a proxy for customer satisfaction.

✅ Correct Answer Explanation

�� A major challenge in control is setting standards for qualitative areas. To make them \"measurable,\" managers should try to express them in numbers. \"Customer satisfaction\" is qualitative, but \"Wait time\" (Option A) is a quantitative standard that can be easily measured and tracked. This provides clarity to employees and makes measurement objective.

❓ Why Other Options Are Incorrect

Option B → \"Be nicer\" is too vague and subjective; measurement would be impossible.
Option C → This is a production standard, not a customer satisfaction/service standard.
Option D → This monitors behavior but does not set a standard for \"customer satisfaction.\"

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: The objective is \"Customer Satisfaction.\" The only option that translates service quality into a measurable metric is A. Final Logic: Turn subjective \"Feelings\" into objective \"Time.\"

🧠 Memory Trick

Seconds and Minutes = Standards for service.

📚 Batch 2: Questions 11–20

11 What is the ultimate effect of a manager keeping a close check on employee activities according to the controlling function?

A It increases the cost of the control system exponentially.

B It helps to minimise dishonest behaviour and ensures order and discipline.

C It replaces the need for actual performance measurement.

D It makes external factors completely manageable.

💡 Short Explanation

Control acts as a psychological pressure. Vigilance prevents theft and slackness. It creates a systematic work environment.

✅ Correct Answer Explanation

�� One of the key benefits of controlling is \"Ensuring order and discipline.\" By keeping a close watch on activities, employees know that their actions are being monitored and compared with standards. This acts as a deterrent for dishonest behavior (like theft or time-wasting) and keeps the workplace orderly.

❓ Why Other Options Are Incorrect

Option A → While control costs money, the ultimate effect described in NCERT is discipline, not just \"high cost.\"
Option C → Monitoring is a form of measurement; it doesn\'t replace it.
Option D → External factors are never \"completely manageable\" by internal control.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Identifying the behavioral objective of controlling (discipline). Final Logic: Monitoring is the primary tool for maintaining an orderly workforce.

🧠 Memory Trick

Watchful Eye = Disciplined Guy.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Importance of Controlling

12 In the case of the Maywood, New Jersey corporate defense firm, what specific dishonest behaviour was minimised by the control system?

A Employees arriving late to work.

B Employees leaving negative reviews about the company.

C Employees deleting orders, pocketing revenues, and stealing a large shipment of electronics.

D Employees refusing to wear safety gear.

💡 Short Explanation

This refers to the \"embezzlement\" example in the text. The software stopped revenue leakage. It highlights control as a tool against fraud.

✅ Correct Answer Explanation

�� The case study (often cited in Business Studies texts regarding controlling) highlights a company that was losing revenue because employees were deleting orders and pocketing the cash. By installing keystroke-logging software, the company was able to track the theft and stop the \"dishonest behavior.\"

❓ Why Other Options Are Incorrect

Options A, B, & D → These are common workplace issues, but they do not match the specific case mentioned in the context of revenue theft/embezzlement stop by monitoring software.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Identifying the specific facts of the case provided in the introduction. Final Logic: Theft is the most extreme form of \"Dishonest Behavior\" solved by control.

🧠 Memory Trick

Delete Order = Delete Profit.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Introduction/Importance

13 To achieve coordination across an entire organisation, arrange the progression of control:
1. Overall organisational objectives are accomplished.
2. Pre-determined standards are set for each department.
3. Departmental standards are well coordinated with one another.
4. Direction is provided to all activities and efforts.

A 1, 4, 2, 3

B 2, 3, 4, 1

C 3, 2, 1, 4

D 4, 3, 2, 1

💡 Short Explanation

1. Set individual targets (Standards). 1. Link the targets (Coordination). 1. Act toward them (Direction). 1. Reach the top goal (Accomplishment).

✅ Correct Answer Explanation

�� Coordination begins by setting standards for each department (2). These must be coordinated with one another (3) to ensure they don\'t conflict (e.g., Production must match Sales). This provides clear direction to all employees (4), eventually leading to the accomplishment of overall objectives (1).

❓ Why Other Options Are Incorrect

Options A, C, & D → These put the result (1) or the action (4) before the necessary step of setting departmental standards (2). You cannot coordinate (3) what has not been set (2).

🎯 Strategy

Strategy Used: Sequential Logic Application: Control always moves from the specific (Departmental standards) to the general (Organizational objectives). Final Logic: Small goals must align first to hit the big goal.

🧠 Memory Trick

Standard → Coordinate → Direction → Accomplishment (S-C-D-A).

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Importance of Controlling (Facilitating Coordination)

14 When each department and employee is governed by pre-determined standards that are well coordinated, what does this ensure?

A That quantitative standards become impossible to set.

B That government policies are aligned with the company.

C That planning becomes backward-looking only.

D That overall organisational objectives are accomplished in a unified direction.

💡 Short Explanation

Coordination prevents departmental silos. Everyone moves in the same direction. It avoids conflicting activities.

✅ Correct Answer Explanation

�� One of the importance of controlling is \"Facilitating coordination in action.\" When standards are coordinated, it ensures that the Production department isn\'t producing more than the Sales department can sell. This unity of direction ensures that all departmental \"efforts\" combine to meet the overall organizational objectives.

❓ Why Other Options Are Incorrect

Option A → Coordination actually makes it easier to set and track quantitative standards.
Option B → Management can\'t ensure government policies align with them; policies are external.
Option C → Planning is always forward-looking; controlling is the one that looks back.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Aligning \"Coordination\" (working together) with \"Unified Direction.\" Final Logic: Harmony in standards leads to harmony in results.

🧠 Memory Trick

Coordination = Common Goal.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Importance of Controlling

15 Why do areas like human behaviour and job satisfaction pose a limitation to the controlling function?

A Because they require costly CCTV cameras.

B Because they can be easily manipulated by external competition.

C Because they make measurement of performance difficult as standards cannot be defined in quantitative terms.

D Because they do not require any planning.

💡 Short Explanation

Control works best with numbers. Feelings and behavior are \"Qualitative.\" Comparing \"Actual\" to \"Qualitative Standard\" is subjective.

✅ Correct Answer Explanation

�� A major limitation of controlling is \"Difficulty in setting quantitative standards.\" Areas like employee morale, behavior, and satisfaction are qualitative. Since you can\'t easily put a number on them, it becomes very hard to measure them objectively or compare them against a standard, making control less effective.

❓ Why Other Options Are Incorrect

Option A → Cameras monitor action, but they cannot measure the standard of satisfaction.
Option B → Competition is an \"external factor\" limitation, not the cause of measurement difficulty.
Option D → Everything in management requires planning.

🎯 Strategy

Strategy Used: Dimensional/Unit Analysis Application: Differentiating between \"Quantitative\" (Numbers) and \"Qualitative\" (Feelings). The limitation is the lack of units. Final Logic: You can\'t manage what you can\'t measure numerically.

🧠 Memory Trick

Qualitative = Questionable Measurement.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Limitations of Controlling

16 Statement 1: A control system never loses its effectiveness, even if standards cannot be defined in quantitative terms.
Statement 2: Setting qualitative standards like \"improving goodwill\" requires an effort to define them in a manner that makes measurement easier.

A Statement 1 is false and Statement 2 is true.

B Both statements are true.

C Both statements are false.

D Statement 1 is true and Statement 2 is false.

💡 Short Explanation

Qualitative standards do reduce control effectiveness. Effort is needed to make qualitative targets measurable. Example: Turn \"Goodwill\" into \"Number of repeat customers.\"

✅ Correct Answer Explanation

�� Statement 1 is false because NCERT explicitly says a control system loses some effectiveness when standards cannot be defined in quantitative terms. Statement 2 is true because managers must try to find \"proxies\" (like customer complaints or repeat orders) to make qualitative goals like \"Goodwill\" easier to measure and track.

❓ Why Other Options Are Incorrect

Options B, C, & D → These are incorrect because Statement 1 contradicts the core limitation of controlling mentioned in the text.

🎯 Strategy

Strategy Used: Extreme Word Filter Application: The word \"Never\" in Statement 1 is a red flag. Management systems are rarely perfect, especially when dealing with human factors. Final Logic: Quantitative is better than qualitative for control.

🧠 Memory Trick

Numbers make Control Effective.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Limitations of Controlling

17 A company fails to meet its domestic sales targets because new competitors entered the market with better technology and pricing. Which limitation of controlling does this scenario illustrate?

A Difficulty in setting quantitative standards.

B Resistance from employees.

C Little control on external factors.

D Control is a costly affair.

💡 Short Explanation

Competition and Technology are \"Macro\" factors. Internal control cannot stop a competitor\'s innovation. Control only works on the \"Internal\" environment.

✅ Correct Answer Explanation

�� Controlling is effective for internal operations, but it has \"Little control on external factors.\" A manager can control employee work, but they cannot control competitors, government policy, or technological changes. In this case, the sales failure was caused by the \"External\" world, which the control system could not prevent.

❓ Why Other Options Are Incorrect

Option A → Sales targets are usually quantitative, so this isn\'t the problem.
Option B → There is no evidence of employees fighting the system.
Option D → While systems are costly, cost wasn\'t the reason the target was missed.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Identifying the \"Source\" of the problem. Competitors = External. Final Logic: You can\'t control what happens outside your office walls.

🧠 Memory Trick

Competition = Control Limitation.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Limitations of Controlling

18 Assertion: Even the best control system cannot guarantee complete success of plans.
Reason: An enterprise generally cannot control external factors like technological changes and competition.

A Both Assertion and Reason are true, and Reason is the correct explanation.

B Both Assertion and Reason are false.

C Assertion is true, but Reason is false.

D Assertion is false, but Reason is true.

💡 Short Explanation

Control has boundaries. Success depends on both internal and external alignment. External shocks can break even a \"perfect\" internal plan.

✅ Correct Answer Explanation

�� The Assertion is true because management operates in an uncertain environment. The Reason is the exact explanation: no matter how well you monitor your own workers (Internal), a technological shift or a competitor\'s move (External) can make your plans fail. Therefore, control is not a \"guarantee\" of success but a tool to increase its probability.

❓ Why Other Options Are Incorrect

Options B, C, & D → These are incorrect because they ignore the fundamental limitation of controlling regarding the external business environment.

🎯 Strategy

Strategy Used: Substitution Application: Use \"Because\" between the sentences. \"Success isn\'t guaranteed because external factors are uncontrollable.\" This makes perfect logical sense. Final Logic: The environment is bigger than the company.

🧠 Memory Trick

Best Control < External Change.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Limitations of Controlling

19 Why is it stated that a small enterprise cannot afford to install an expensive control system?

A Because small enterprises do not have objectives.

B Because they only rely on qualitative standards.

C Because their employees do not resist control.

D Because it involves a lot of expenditure, time, and effort which they cannot justify against the benefits derived.

💡 Short Explanation

Control is a \"Costly Affair.\" ROI (Return on Investment) must be positive. Small firms have limited resources to spend on oversight.

✅ Correct Answer Explanation

�� A major limitation of controlling is its cost. It requires equipment, technical staff, and a lot of time for monitoring. A small enterprise often finds that the cost of such a complex system exceeds the \"benefits\" (revenue saved or efficiency gained), making it an irrational investment.

❓ Why Other Options Are Incorrect

Option A → Every business has objectives.
Option B → Size doesn\'t dictate the type of standard, but it does dictate the budget for tracking them.
Option C → Employees in small firms can resist control just as much as those in large firms.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Identifying the economic constraint of the controlling function. Final Logic: Control must be economical to be meaningful.

🧠 Memory Trick

Costly Affair = Control Limitation.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Limitations of Controlling

20 Which of the following is NOT a reason for employee resistance to controlling?

A They feel they are kept under strict watch.

B They enjoy having quantitative standards tracked via computer monitoring without their knowledge.

C They see it as a restriction on their freedom.

D They object to the use of Closed Circuit Televisions (CCTVs).

💡 Short Explanation

Resistance stems from a loss of autonomy. Employees generally dislike being monitored without their knowledge. Control is seen as \"policing\" rather than \"support.\"

✅ Correct Answer Explanation

�� Statement B is incorrect because employees do NOT \"enjoy\" secret monitoring; in fact, secret monitoring is one of the primary reasons for extreme resistance and low morale. Options A, C, and D are all classic reasons cited in NCERT for why workers push back against control systems.

❓ Why Other Options Are Incorrect

Option A → True; strict watch creates pressure.
Option C → True; control is often viewed as \"micromanagement\" that kills freedom.
Option D → True; CCTVs are the most commonly cited physical example of resented control.

🎯 Strategy

Strategy Used: Odd One Out Application: Options A, C, and D are negative perceptions. Option B is a positive perception (\"enjoy\"). In the context of \"Resistance,\" the positive perception is the incorrect one. Final Logic: Control is rarely \"enjoyed\" by those being controlled.

🧠 Memory Trick

Control = Freedom Restriction.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Limitations of Controlling

CUET UG Business Studies Test 2 Importance and Limitations of Controlling

Test Complete!

Answer Review