CUET UG Business Studies Booster Test 3 Importance and Limitations of Controlling -

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CUET UG Business Studies Test 3 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 3 Importance and Limitations of Controlling

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QUESTION 1 OF 20

(Assertion/definition-based MCQ) Assertion: Controlling is entirely a backward-looking function.
Reason: Controlling is like a postmortem of past activities to find out deviations from the standards.

Answer Review

1 (Assertion/definition-based MCQ) Assertion: Controlling is entirely a backward-looking function.
Reason: Controlling is like a postmortem of past activities to find out deviations from the standards.

A Assertion is false, but Reason is true. (Controlling is both backward and forward-looking).

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

C Assertion is true, but Reason is false.

D Both Assertion and Reason are false.

💡 Short Explanation

Controlling examines past performance (postmortem). It provides corrective data for future plans. Therefore, it is both backward and forward-looking.

✅ Correct Answer Explanation

�� The Assertion is false because controlling is not entirely backward-looking. While it analyzes past events to find deviations (backward-looking), it uses these findings to improve future planning and performance (forward-looking). The Reason is true as it correctly describes the "postmortem" aspect—comparing what has happened against what should have happened to identify gaps.

❓ Why Other Options Are Incorrect

Option B → Incorrect because the assertion's use of the word "entirely" makes it factually wrong.
Option C → Incorrect because the assertion is the false statement and the reason is the true one.
Option D → Incorrect because the reason is a factually correct description of the investigative nature of control.

🎯 Strategy

Strategy Used: Extreme Word Filter Application: The word "entirely" in the assertion is an extreme that usually indicates a false statement in management, where functions are interconnected. Final Logic: Controlling looks back to find errors but looks forward to fix them.

🧠 Memory Trick

Control is a Mirror (Back) and a Map (Forward).

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

2 (Case-based decision MCQ) Mr. Shantanu instructs his manager to keep a continuous check on all department activities and track employee performance to achieve targets efficiently. Which two conceptual features of controlling are analytically demonstrated here?

A It is only an end-process and ignores planning.

B It is quantitative only and focuses on external factors.

C It is goal-oriented and a pervasive/continuous function.

D It relies exclusively on qualitative standards and ignores efficiency.

💡 Short Explanation

"Achieve targets" indicates it is goal-oriented. "Continuous check" shows it is a continuous function. Checking "all department activities" demonstrates it is pervasive.

✅ Correct Answer Explanation

�� Mr. Shantanu's instructions highlight that controlling is not a one-time activity but a continuous process ("continuous check"). Because it is applied across "all department activities," it is pervasive. Finally, the focus on "achieving targets" confirms that the function is goal-oriented, aimed at ensuring organizational objectives are met.

❓ Why Other Options Are Incorrect

Option A → Controlling is a beginning and end process, and it is based on planning, not ignoring it.
Option B → Controlling is not "only" quantitative and the case focuses on internal performance, not external factors.
Option D → The case mentions efficiency and targets, which contradicts the idea of ignoring efficiency or relying "exclusively" on qualitative standards.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Matching the keywords in the prompt ("continuous", "targets", "all departments") to the formal characteristics of management. Final Logic: The case describes ongoing oversight aimed at specific ends across the whole firm.

🧠 Memory Trick

Goals + Continuous = Good Control.

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

3 (Statement-based MCQ) Statement 1: Planning seeks consistent, integrated and articulated programmes while controlling seeks to compel events to conform to plans.
Statement 2: Planning is evaluative, whereas controlling is prescriptive.

A Both statements are true.

B Statement 1 is true and Statement 2 is false.

C Both statements are false.

D Statement 1 is false and Statement 2 is true.

💡 Short Explanation

Planning creates the program; control enforces it. Planning is prescriptive (sets the rules). Controlling is evaluative (judges the performance).

✅ Correct Answer Explanation

�� Statement 1 is true as it accurately defines the roles: planning designs the path, and controlling ensures the organization stays on it. Statement 2 is false because it swaps the definitions; Planning is prescriptive (prescribing what to do), while Controlling is evaluative (evaluating what was done against the plan).

❓ Why Other Options Are Incorrect

Option A → Incorrect because Statement 2 is conceptually reversed.
Option C → Incorrect because Statement 1 is a valid definition of the relationship between the two functions.
Option D → Incorrect because Statement 1 is true, and the "evaluative/prescriptive" labels in Statement 2 are misplaced.

🎯 Strategy

Strategy Used: Dimensional/Unit Analysis Application: Breaking down the "nature" of the tasks. Planning = Prescribing (Before); Controlling = Evaluating (After). Final Logic: You prescribe the plan and evaluate the result.

🧠 Memory Trick

Plan Prescribes; Control Checks (Evaluates).

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

4 (Sequence arrangement) Arrange the comprehensive phases linking goal achievement with control:
1. Deviations are discovered and analyzed.
2. Corrective measures are initiated to conform to plans.
3. A plan becomes operational and predetermined standards are provided.
4. Progress is monitored and measured.

A 4, 1, 3, 2

B 2, 4, 1, 3

C 1, 2, 3, 4

D 3, 4, 1, 2

💡 Short Explanation

Phase 1: Setting Standards (Step 3 in list). Phase 2: Measurement (Step 4 in list). Phase 3: Analysis (Step 1 in list). Phase 4: Action (Step 2 in list).

✅ Correct Answer Explanation

�� The logical flow of the controlling process begins with establishing standards through a plan (3). Once the plan is operational, the manager must monitor and measure progress (4). Following measurement, any gaps between actual and planned results are discovered/analyzed (1). Finally, corrective measures are taken to fix those gaps (2).

❓ Why Other Options Are Incorrect

Option A, B, & C → These sequences are illogical as they suggest analyzing deviations (1) or taking action (2) before standards are set (3) or performance is measured (4).

🎯 Strategy

Strategy Used: Sequential Logic Application: Following the standard 4-step process of control: Set Standards → Measure → Compare → Correct. Final Logic: You must have a standard (3) and a measurement (4) before you can find a mistake (1).

🧠 Memory Trick

Standard, Measure, Analyze, Act (S-M-A-A).

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

5 (Process sequence) During standard checks, when management applies 'Critical Point Control', what is the analytical justification?

A It attempts to control every single activity equally.

B It is neither economical nor easy to keep a check on every activity, so it focuses on Key Result Areas (KRAs).

C It only measures qualitative standards.

D It assumes standards never need to be revised.

💡 Short Explanation

Focusing on everything wastes management time. Key Result Areas (KRAs) impact the whole firm. CPC ensures efficiency in the control process itself.

✅ Correct Answer Explanation

�� Critical Point Control is based on the idea that management cannot monitor every minute detail of an organization. Therefore, it identifies "Critical Points" or Key Result Areas (KRAs) which are essential for the overall success of the organization. If something goes wrong at these points, the entire organization suffers, making them the priority for control.

❓ Why Other Options Are Incorrect

Option A → This describes "total control," which is the opposite of the "Critical Point" philosophy.
Option C → Critical Point Control applies to both quantitative and qualitative standards.
Option D → Standard revision is a separate step and not the justification for CPC.

🎯 Strategy

Strategy Used: Elimination Application: Eliminating the idea that a manager can see everything (A) or that control is limited to one type of standard (C). Final Logic: Managers should focus on the "vital few" rather than the "trivial many."

🧠 Memory Trick

Critical = Key Result Areas.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Controlling Process (Step 3)

6 (Process sequence) If a production target could not be met due to unrealistic standards, what is the conceptual remedial plan of action?

A Assigning additional workers.

B Permitting overtime work.

C The standards may have to be revised.

D Upgrading the machinery immediately.

💡 Short Explanation

Corrective action depends on the cause. If the goal is "unrealistic," the fault is in the plan. Fixing the plan means revising the standard.

✅ Correct Answer Explanation

�� If the deviation is caused by the fact that the standards were set too high or were unrealistic for the current environment, no amount of extra labor (A) or overtime (B) will efficiently solve the underlying issue. The conceptual remedial action is to go back to the planning stage and revise the standards to make them achievable.

❓ Why Other Options Are Incorrect

Option A & B → These are corrective actions for when the standard is correct but the effort is lacking.

Option D → This is a corrective action for machinery failure, not for flawed goal-setting.

🎯 Strategy

Strategy Used: Substitution Application: Matching the "Cause" (Unrealistic Standards) with the "Corrective Action" (Revision). Final Logic: If the yardstick is broken, change the yardstick.

🧠 Memory Trick

Unrealistic = Update (Revise).

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Controlling Process (Step 4)

7 (Match the following MCQ) Match the specific deviation cause to the corrective action aimed at improving resource efficiency.

List I	List II
1. Defective material	A. Repair the existing machine
2. Defective machinery	B. Undertake technological upgradation
3. Obsolete machinery	C. Change the quality specification for the material used
4. Defective process	D. Modify the existing process

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

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

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

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

💡 Short Explanation

Bad material requires new specs (1-C). Broken machine needs repair (2-A). Old (obsolete) tech needs an upgrade (3-B). Bad process needs modification (4-D).

✅ Correct Answer Explanation

�� Corrective action must be tailored to the specific cause of deviation. Defective material is solved by changing specs (1-C). Defective machinery (something broken) is fixed via repair (2-A). Obsolete machinery (outdated) is fixed via technological upgrade (3-B). A defective process is fixed by modifying the way work is done (4-D).

❓ Why Other Options Are Incorrect

Options B, C, & D → These misalign the logical solution with the problem (e.g., suggesting a repair for obsolete machinery or changing material specs for a process issue).

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Identifying the most logical "Fix" for a specific "Break." Final Logic: Problem and Solution must belong to the same category (e.g., Material with Material).

🧠 Memory Trick

Obsolete = Upgrade.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Controlling Process (Step 4)

8 (Direct MCQ) Management by Exception helps improve efficiency because it is based on the belief that:

A Controlling everything is the only way to manage.

B Key Result Areas should be ignored.

C Qualitative standards are superior.

D An attempt to control everything results in controlling nothing.

💡 Short Explanation

Managers have limited time/energy. Small deviations are normal and should be ignored. Only "exceptional" deviations require attention.

✅ Correct Answer Explanation

�� Management by Exception (also known as Control by Exception) suggests that if a manager tries to control every minor deviation, they will be overwhelmed and fail to control the significant ones. By only focusing on deviations that go beyond a "permissible limit," the manager uses their time more efficiently.

❓ Why Other Options Are Incorrect

Option A → This is the antithesis of Management by Exception.
Option B → Key Result Areas are the focus of control, not something to be ignored.
Option C → This principle is unrelated to the qualitative vs. quantitative debate.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Recognizing the fundamental mantra of this management principle as stated in NCERT. Final Logic: Focus on the "significant" to maintain overall control.

🧠 Memory Trick

Control Everything = Control Nothing.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Controlling Process (Step 3)

📄 Passage

Category: Motivation Passage for Q9 & Q10: "Improving employee motivation: A good control system ensures that employees know well in advance what they are expected to do and what are the standards of performance on the basis of which they will be appraised. It, thus, motivates them and helps them to give better performance. (v) Ensuring order and discipline: Controlling creates an atmosphere of order and discipline in the organisation. It helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities."

(Passage-based MCQ) Conceptually, how does advanced knowledge of performance standards act as a motivational tool?

A It instils a sense of fear via constant CCTV monitoring.

B It guarantees that standards are completely flexible and can be ignored.

C It clarifies exactly what employees are expected to do and the basis of their appraisal.

D It removes the need for measurement of actual performance.

💡 Short Explanation

Uncertainty causes demotivation. Clear standards provide a roadmap. Fair appraisal based on known goals boosts morale.

✅ Correct Answer Explanation

�� According to the passage, when employees know the standards in advance, they understand what is expected of them and how they will be judged. This clarity reduces confusion and motivates them to perform better, as they have a clear target to aim for.

❓ Why Other Options Are Incorrect

Option A → While CCTVs relate to discipline, fear is generally not considered a positive "motivational tool" in this conceptual framework.
Option B → Standards are benchmarks to be met, not ignored.
Option D → Measurement is essential to see if the standards were met; advanced knowledge does not eliminate the need for it.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Directly matching the answer to the text: "employees know well in advance what they are expected to do." Final Logic: Clarity of expectations leads to clarity of effort.

🧠 Memory Trick

Knowledge = Klarity (Clarity).

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

📄 Passage

(Passage-based MCQ) While performance standards motivate, what conceptual role does the control system play regarding employee integrity, as per the passage?

A It prevents external competitors from stealing employees.

B It minimises dishonest behaviour by keeping a close check on activities.

C It increases the freedom of the employees.

D It ensures quantitative standards are never applied to humans.

💡 Short Explanation

Integrity is maintained via "Order and Discipline." "Close check" acts as a deterrent. Dishonesty is reduced when oversight is present.

✅ Correct Answer Explanation

�� The passage states that controlling ensures "order and discipline" by keeping a close check on activities. This oversight minimizes dishonest behavior because employees are aware that their actions are being recorded or monitored, thus protecting the organization's integrity and assets.

❓ Why Other Options Are Incorrect

Option A → This relates to HR retention, not employee integrity/dishonesty.
Option C → Control is often seen as a restriction on freedom, not an increase of it.
Option D → Quantitative standards are applied to humans (e.g., production units per hour).

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Identifying the specific phrase from the passage: "minimise dishonest behaviour... by keeping a close check." Final Logic: Oversight discourages dishonesty.

🧠 Memory Trick

Discipline = Deterrence of Dishonesty.

📚 Batch 2: Questions 11–20

11 (NOT/incorrect type MCQ) Which of the following is NOT an outcome of ensuring order and discipline through a control system?

A Maximising the subjective freedom of employees to bypass rules.

B Creating an atmosphere of order.

C Keeping a close check on employee activities.

D Minimising dishonest behaviour.

💡 Short Explanation

Discipline requires adherence to rules. Bypassing rules is the opposite of order. Control restricts, rather than maximizes, "subjective freedom" to ignore norms.

✅ Correct Answer Explanation

�� Ensuring order and discipline is an importance of controlling that aims to create a systematic environment. This involves keeping a close check on activities (C) and minimizing dishonesty (D). Maximizing the freedom of employees to "bypass rules" (A) would lead to chaos and is the direct opposite of what a control system is designed to achieve.

❓ Why Other Options Are Incorrect

Option B, C, & D → These are all positive outcomes and definitions of how controlling establishes discipline according to NCERT.

🎯 Strategy

Strategy Used: Odd One Out Application: Options B, C, and D are characteristics of "Discipline." Option A describes "Indiscipline." Final Logic: Control establishes rules; it does not help people break them.

🧠 Memory Trick

Discipline = Directions, not Deviating.

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

12 (Case-based decision MCQ) If Mr. Bhanu Prasad consistently falls short of his production target by a minor 10 units due to a slight process delay, but the CEO operates strictly on "Management by exception", what decision should she analytically take regarding his termination?

A Terminate him immediately to show discipline.

B Change the organisational goals entirely.

C Install computer monitoring to track his keystrokes.

D Focus only on significant deviations that cross permissible limits, meaning a minor 10-unit shortfall might not warrant immediate termination before addressing the process.

💡 Short Explanation

MBE ignores minor, acceptable deviations. Management time is saved for critical issues. The "process delay" is the root cause, not necessarily the employee.

✅ Correct Answer Explanation

�� Under Management by Exception (MBE), a manager only intervenes when deviations are "exceptional" or cross a specific threshold. A "minor 10-unit shortfall" might fall within the permissible range of variation. Analytically, the CEO should ignore this minor dip or investigate the process delay rather than taking drastic action like termination, which is reserved for significant failures.

❓ Why Other Options Are Incorrect

Option A → This is an extreme reaction that ignores the "permissible limit" aspect of MBE.
Option B → One employee's minor deviation does not justify changing the goals of the entire organization.
Option C → Keystroke monitoring is for dishonesty/integrity issues, not for a minor production shortfall.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Applying the principle of "Permissible Limits" to a specific scenario. Final Logic: Don't sweat the small stuff; focus on the "Exceptions."

🧠 Memory Trick

Minor = More Bearing (Tolerance).

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Controlling Process (Step 3)

13 (Statement-based MCQ) Statement 1: Controlling ensures that overall organisational objectives are accomplished by providing independent, uncoordinated standards to each department.
Statement 2: Controlling facilitates coordination in action by governing each department with pre-determined standards coordinated with one another.

A Both statements are true.

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

C Statement 1 is false, and Statement 2 is true.

D Both statements are false.

💡 Short Explanation

Uncoordinated standards lead to conflict. Coordination requires alignment between departments. Controlling acts as the glue for these standards.

✅ Correct Answer Explanation

�� Statement 1 is false because "independent, uncoordinated" standards would lead to departments working at cross-purposes (e.g., Sales promising what Production cannot deliver). Statement 2 is true because the essence of coordination through control is that standards are interlinked, ensuring all departments move in a unified direction.

❓ Why Other Options Are Incorrect

Option A → Incorrect because the "uncoordinated" part of Statement 1 is factually wrong.
Option B → Incorrect because it identifies the wrong statement as true.
Option D → Incorrect because Statement 2 is a textbook definition of how control facilitates coordination.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Coordination by definition requires "linking." Statement 1 uses "uncoordinated," which is a logical contradiction. Final Logic: Control links departments; it doesn't isolate them.

🧠 Memory Trick

Control = Coordinated Commitment.

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

14 (Assertion/definition-based MCQ) Assertion: Controlling provides unified direction to all activities and efforts.
Reason: Controlling ensures that each department's standards are aligned so they work together in one direction to meet targets.

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

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

C Assertion is true, but Reason is false.

D Assertion is false, but Reason is true.

💡 Short Explanation

Unified direction is the goal. Aligned standards are the mechanism. Alignment ensures synergy toward objectives.

✅ Correct Answer Explanation

�� The Assertion is true as providing unified direction is a primary function of a good control system. The Reason explains how this happens: by aligning the standards of different departments (Coordination), the control system ensures that everyone is pulling in the same direction, thereby justifying the assertion.

❓ Why Other Options Are Incorrect

Option B → Incorrect because the Reason provides the specific mechanism that makes the Assertion possible.

Option C & D → Incorrect because both statements are conceptually sound and logically linked.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Linking the "What" (Unified Direction) with the "How" (Aligned standards). Final Logic: Alignment is the prerequisite for a unified direction.

🧠 Memory Trick

Alignment = Accomplishment of Aim.

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

15 (Case-based decision MCQ) A manager tries to evaluate the "job satisfaction" of the assembly line workers but finds the control system ineffective in this specific area. What underlying practical constraint is occurring?

A The control system is too inexpensive.

B There is resistance from employees regarding CCTVs.

C The manager forgot to formulate future plans.

D The standard loses effectiveness because job satisfaction cannot be defined in precise quantitative terms.

💡 Short Explanation

Job satisfaction is qualitative (emotional/subjective). Control systems struggle with non-numerical data. Difficulty in measurement leads to ineffective control.

✅ Correct Answer Explanation

�� A major limitation of controlling is the "Difficulty in setting quantitative standards." Areas like job satisfaction, employee morale, and human behavior are qualitative. Because they cannot be defined in numbers, comparing actual results against a standard becomes subjective and difficult, making the control system less effective in these areas.

❓ Why Other Options Are Incorrect

Option A → Cost is usually a barrier to implementation, not a reason for measurement difficulty.
Option B → Resistance is a limitation, but the ineffectiveness in evaluation mentioned here points specifically to measurement difficulty.
Option C → While plans are needed, the specific failure to measure satisfaction is a problem of "standard type" (Qualitative).

🎯 Strategy

Strategy Used: Dimensional/Unit Analysis Application: Differentiating between what can be counted (Quantitative) and what must be felt (Qualitative). Final Logic: You can't measure a "feeling" with a "ruler."

🧠 Memory Trick

Qualitative = Questionable control.

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

16 (Direct MCQ) Analytically, what makes comparing actual performance with standards much easier?

A Ensuring standards are completely qualitative.

B Setting standards in precise quantitative terms at the planning stage.

C Waiting until the next management cycle to set objectives.

D Focusing entirely on external environmental factors.

💡 Short Explanation

Numbers are objective. Quantitative data allows for easy gap analysis. It removes manager bias from the comparison.

✅ Correct Answer Explanation

�� Comparison is the core of controlling. When standards are set in quantitative terms (e.g., 100 units per day), it is very easy to see if actual performance (e.g., 90 units) met the goal. Qualitative standards (e.g., "work hard") are subjective and make comparison difficult.

❓ Why Other Options Are Incorrect

Option A → Qualitative standards make comparison harder, not easier.
Option C → Waiting is not a strategy for easier comparison; it is a delay.
Option D → External factors usually complicate the control process rather than making it easier.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Identifying the ideal "Form" of a standard for effective measurement. Final Logic: Numbers provide the clearest yardstick for performance.

🧠 Memory Trick

Quantity = Quick Comparison.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Controlling Process (Step 1)

17 (Process sequence) If a significant deviation is traced back to a sudden change in government policies, what is the analytical conclusion regarding the control process?

A The manager should discipline the employees immediately.

B The control process will seamlessly reverse the government policy.

C The enterprise generally has little control over external factors, and internal plans/standards may have to adapt.

D The organisation should install a more expensive CCTV system.

💡 Short Explanation

External environment is uncontrollable. Control only works on internal variables. Plans must be flexible to survive external shocks.

✅ Correct Answer Explanation

�� One of the key limitations of controlling is "Little control on external factors." Government policies, technological changes, and competition are outside the manager's influence. If these cause a deviation, the control system cannot "fix" the external factor; instead, the organization must adapt its internal plans and standards to the new reality.

❓ Why Other Options Are Incorrect

Option A → Disciplining employees for a government policy change is unfair and ineffective.
Option B → No company control system is powerful enough to "reverse" national policy.
Option D → CCTVs monitor internal behavior and are useless against external policy shifts.

🎯 Strategy

Strategy Used: Elimination Application: Eliminating options that suggest internal tools (discipline, CCTV) can solve external problems. Final Logic: You can't control the wind, only adjust your sails (Plans).

🧠 Memory Trick

External = Exempt from internal control.

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

18 (Match the following MCQ) Match the specific limitation conceptually to the scenario it describes.

List I	List II
1. Little control on external factors	A. Small enterprise abandons control due to lack of funds.
2. Difficulty in setting quantitative standards	B. Workers strike over restrictive monitoring.
3. Costly affair	C. Competitor launches a disruptive technology.
4. Resistance from employees	D. Manager fails to accurately measure 'morale'.

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

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

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

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

💡 Short Explanation

External factor = Competitor/Tech (1-C). Quantitative difficulty = Morale measurement (2-D). Costly affair = Small enterprise funds (3-A). Resistance = Strikes/Monitoring (4-B).

✅ Correct Answer Explanation

�� Little control on external factors is illustrated by a competitor's technology (1-C). Difficulty in setting quantitative standards is reflected in the struggle to measure morale (2-D). Costly affair is why a small enterprise might lack funds for a system (3-A). Resistance from employees is evidenced by strikes over monitoring (4-B).

❓ Why Other Options Are Incorrect

Options A, B, & C → These misalign the conceptual limitation with its real-world application (e.g., linking morale to external factors or competition to cost).

🎯 Strategy

Strategy Used: Option Grouping Application: Pairing the most obvious match (Resistance = Strikes/4-B) to narrow down the choices. Final Logic: Matching specific management constraints to their real-world symptoms.

🧠 Memory Trick

Resistance = Revolt (Strike).

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

19 (Assertion/definition-based MCQ) Assertion: A small enterprise cannot justify the expenses of installing an expensive control system.
Reason: Control is a costly affair as it involves a lot of expenditure, time, and effort, which must not exceed the derived benefits.

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

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

C Assertion is false, but Reason is true.

D Both Assertion and Reason are false.

💡 Short Explanation

Control requires an "Economic" justification. Cost should be less than the benefit. Small firms have lower "derived benefits" to cover high setup costs.

✅ Correct Answer Explanation

�� The Assertion is true because small firms have limited financial resources. The Reason is also true and explains the assertion: every control system must pass a "cost-benefit" test. If the cost (expenditure, time, effort) is higher than the benefits gained, it is not a rational management decision, which is why small enterprises often avoid expensive systems.

❓ Why Other Options Are Incorrect

Option B → Incorrect because the Reason provides the exact economic logic required to support the Assertion.

Option C & D → Incorrect because both statements are factually correct based on the "Costly Affair" limitation in NCERT.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Linking the financial limitation of a small firm to the general economic principle of control. Final Logic: Management must be economical.

🧠 Memory Trick

Benefits must be Bigger than costs.

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

20 (NOT/incorrect type MCQ) Regarding the cost and resistance limitations of controlling, which conceptual statement is NOT true?

A Employees resist control because they see it as a restriction on their freedom.

B The benefits derived from a control system should ideally be lesser than the costs of installing it to be considered effective.

C Small enterprises might find controlling a costly affair.

D Strict watches using technologies like CCTV can trigger employee objections.

💡 Short Explanation

This is the reverse of the economic rule. Effectiveness requires Benefits > Cost. If Benefits < Cost, the system is a failure.

✅ Correct Answer Explanation

�� Statement B is conceptually incorrect. For any management system to be considered effective and justifiable, the benefits derived must exceed the costs involved. If the costs are higher than the benefits, the organization is losing value, which is the opposite of efficiency.

❓ Why Other Options Are Incorrect

Option A → True; loss of autonomy is a major reason for resistance.
Option C → True; small firms often lack the scale to justify high control costs.
Option D → True; surveillance is a common point of contention and objection for workers.

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Checking the mathematical logic of the statement. Benefits should always be greater than costs in business. Final Logic: A system that costs more than it saves is not an "effective" control.

🧠 Memory Trick

Money in > Money out.

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

CUET UG Business Studies Test 3 Importance and Limitations of Controlling

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