CUET UG Business Studies Booster Test 2 Meaning and Nature of Controlling -

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CUET UG Business Studies Test 2 Meaning and Nature of Controlling

⏱️ 30 Minutes

❓ 20 Questions

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

CUET UG Business Studies Test 2 Meaning and Nature of Controlling

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QUESTION 1 OF 20

Assertion (A): A system of control presupposes the existence of certain standards.
Reason (R): Without planning, managers have a predetermined understanding of the desired performance to measure against.

Answer Review

1 Assertion (A): A system of control presupposes the existence of certain standards.
Reason (R): Without planning, managers have a predetermined understanding of the desired performance to measure against.

A Both A and R are true, and R is the correct explanation of A

B Both A and R are true, but R is not the correct explanation of A

C A is true, but R is false

D A is false, but R is true

💡 Short Explanation

Controlling requires a benchmark (standard) to measure performance. Planning is the source of these standards. Without planning, managers have no basis for comparison.

✅ Correct Answer Explanation

Assertion (A) is correct because controlling cannot happen in a vacuum; it requires standards to compare actual performance against. However, Reason (R) is false because it claims that managers have a "predetermined understanding" without planning. In reality, it is planning that provides this understanding. Without the planning process, there are no predetermined goals or standards.

❓ Why Other Options Are Incorrect

Option A & B → These are incorrect because Reason (R) is a logically false statement.

Option D → This is incorrect because Assertion (A) is a fundamental truth in management theory.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: The Reason contradicts the established relationship where Planning is the prerequisite for Controlling.

Final Logic: Assertion is a standard definition; Reason is a factual error.

🧠 Memory Trick

No Plan, No Standard, No Control.

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

2 A manager notices a minor 1% increase in postal charges but a significant 5% increase in labour cost, deciding to take immediate action only on the labour cost. Which principle of corrective action is applied?

A Complete control system

B Management by exception

C Planning backwards

D Setting qualitative standards

💡 Short Explanation

Focus is on significant deviations. Minor issues (postage) are ignored to save time. Critical areas (labour) receive managerial attention.

✅ Correct Answer Explanation

Management by Exception (MBE) suggests that if you try to control everything, you may end up controlling nothing. A manager should focus on significant deviations that go beyond the permissible limit. A 5% increase in labour cost is usually a "Critical Point" or a major deviation compared to a 1% increase in a minor expense like postage.

❓ Why Other Options Are Incorrect

Option A → A "complete" system would waste time checking the 1% postal increase.
Option C → This refers to the relationship between planning and control, not the filtering of deviations.
Option D → Costs are quantitative, not qualitative.

🎯 Strategy

Used: Elimination

Application: Eliminate qualitative (D) because costs are numerical. Eliminate A because the manager specifically chose not to control everything.

Final Logic: Focusing only on significant "exceptions" is Management by Exception.

🧠 Memory Trick

MBE = Ignore the Minor, manage the Big Errors.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Analyzing Deviations

3 Statement I: Planning is basically an intellectual process involving thinking, articulation and analysis.
Statement II: Controlling is prescriptive whereas planning is evaluative.
Choose the correct option:

A Both statements are correct

B Statement I is correct and Statement II is incorrect

C Both statements are incorrect

D Statement I is incorrect and Statement II is correct

💡 Short Explanation

Planning is the "thinking" phase of management. Planning is prescriptive (tells what to do). Controlling is evaluative (checks what was done).

✅ Correct Answer Explanation

Statement I is a classic definition of planning as an intellectual exercise. Statement II is incorrect because it swaps the roles: Planning is prescriptive (it prescribes the course of action), while Controlling is evaluative (it evaluates the results against the plan).

❓ Why Other Options Are Incorrect

Option A → Incorrect because Statement II is logically reversed.
Option C → Incorrect because Statement I is a factual description of planning.
Option D → Incorrect because it suggests the accurate Statement I is wrong.

🎯 Strategy

Used: Dimensional/Unit Analysis

Application: Analyzing the nature of the functions shows that "evaluating" performance is the core "dimension" of control, not planning.

Final Logic: Plan = Prescription; Control = Evaluation.

🧠 Memory Trick

Plan = Prescribe. Control = Check (Evaluate).

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

4 How does controlling fulfill its meaning of being goal-oriented for employees?

A By keeping them unaware of standards until appraisal

B By ensuring they know well in advance what they are expected to do

C By eliminating the need for disciplinary action

D By allowing employees to set their own operational plans

💡 Short Explanation

Control provides clarity through standards. Clear targets motivate better performance. It acts as a guide for employee efforts.

✅ Correct Answer Explanation

Controlling serves as a guide for employees by providing "Standards of Performance." When employees know exactly what the benchmark is "well in advance," they can align their efforts to reach that goal. This clarity is what makes the function goal-oriented for the workforce.

❓ Why Other Options Are Incorrect

Option A → Secrecy hinders performance and is the opposite of good control.
Option C → Control might identify the need for discipline; it doesn't eliminate it.
Option D → Planning is a managerial function; while employees may be consulted, control relies on predetermined organizational standards.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: "Goal-oriented" implies having a target. Option B is the only one providing a target to the employee.

Final Logic: You can't reach a goal if you don't know what it is.

🧠 Memory Trick

Clarity = Control.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Importance of Controlling (Motivating Employees)

5 To ensure conformity of activities to predetermined plans, an effort must be made to define qualitative standards in a manner that:

A Makes them completely theoretical

B Makes their measurement easier

C Leaves them open to individual interpretation

D Separates them entirely from quantitative standards

💡 Short Explanation

Standards should be as objective as possible. Even qualitative goals (like morale) need a way to be gauged. Easy measurement leads to better control.

✅ Correct Answer Explanation

While quantitative standards (numbers) are easy to measure, qualitative standards (like "improving brand image") are difficult. To be effective in a control system, these qualitative standards must be defined in a way that makes measurement as easy and objective as possible to avoid confusion.

❓ Why Other Options Are Incorrect

Option A → Theoretical standards cannot be used for practical measurement.
Option C → "Individual interpretation" leads to bias and inconsistency, which control aims to eliminate.
Option D → Qualitative and quantitative standards often work together; they shouldn't be entirely separated.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: The purpose of a "standard" in the "controlling process" is to allow for "measurement." Therefore, Option B is the most functional choice.

Final Logic: A standard is useless if you can't measure against it.

🧠 Memory Trick

Standards must be Measurable (SMart).

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

6 Which sequence correctly represents the process to guarantee planned results are achieved?

A Analyzing deviations -> Setting standards -> Comparing performance -> Corrective action

B Measurement -> Corrective action -> Analyzing deviations -> Setting standards

C Setting standards -> Measurement -> Comparing performance -> Analyzing deviations -> Corrective action

D Comparing performance -> Setting standards -> Corrective action -> Analyzing deviations

💡 Short Explanation

You need a target first (Standard). Then check what happened (Measurement). Find the gap (Comparison) and the cause (Analysis). Finally, fix it (Corrective Action).

✅ Correct Answer Explanation

This is the logical, five-step sequence of the controlling process. You start with the benchmark (Standards), then find out the actuals (Measurement), see the difference (Comparison), understand why it happened (Analysis), and finally take steps to ensure it doesn't happen again (Corrective Action).

❓ Why Other Options Are Incorrect

Options A, B, & D → These sequences are logically flawed (e.g., you cannot analyze a deviation before you have compared performance against a standard).

🎯 Strategy

Used: Sequential Logic

Application: The process must begin with "Setting Standards." Only Option C starts correctly and follows the logical flow of information.

Final Logic: Target → Act → Compare → Why → Fix.

🧠 Memory Trick

S-M-C-A-C: Standard, Measure, Compare, Analyze, Correct.

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

7 Which of the following is NOT a true feature of controlling?

A It is a forward-looking function as well as a backward-looking function

B It is solely the responsibility of top-level management

C It is a pervasive function required in all types of organisations

D It helps in facilitating coordination in action

💡 Short Explanation

Control is performed at all levels (Pervasive). Supervisors control workers; CEOs control the company. Responsibility is shared across the hierarchy.

✅ Correct Answer Explanation

Controlling is not restricted to any single level of management. It is a pervasive function. While top management controls overall strategic goals, middle and lower-level managers control departmental and operational activities respectively. Therefore, saying it is "solely" the responsibility of the top level is incorrect.

❓ Why Other Options Are Incorrect

Option A → True; it looks at past performance to improve future plans.
Option C → True; it is needed in businesses, schools, hospitals, etc.
Option D → True; it ensures all departments are moving toward the same goal.

🎯 Strategy

Used: Extreme Word Filter

Application: The word "solely" in Option B is an extreme qualifier that usually indicates a false statement in management principles.

Final Logic: Management is a team sport; control happens at every level.

🧠 Memory Trick

Control = All Levels.

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

8 Match the controlling standards in List 1 with the functional area they represent in List 2:

List I	List II
1. Sales volume	A. Human Resource Management
2. Labour absenteeism	B. Marketing
3. Capital expenditures	C. Production
4. Quantity of pieces produced	D. Finance and Accounting

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

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

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

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

💡 Short Explanation

Sales relates to Marketing (1-B). Labour relates to HR (2-A). Expenditure relates to Finance (3-D). Pieces produced relates to Production (4-C).

✅ Correct Answer Explanation

Different departments have different benchmarks. Sales volume is a marketing target (1-B). Labour absenteeism tracks employee behavior, which is an HR concern (2-A). Capital expenditures involve large financial outlays managed by Finance (3-D). The Quantity of pieces is the primary output measure for the Production department (4-C).

❓ Why Other Options Are Incorrect

Options B, C, & D → These misplace the standards into the wrong functional departments (e.g., putting Sales under HR or Labour under Marketing).

🎯 Strategy

Used: Option Grouping

Application: Grouping "Labour" with "HR" and "Sales" with "Marketing" quickly identifies the correct pattern.

Final Logic: Match the resource/output to the department that manages it.

🧠 Memory Trick

Sell = Marketing. People = HR. Money = Finance. Make = Production.

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

📄 Passage

Category: Function Role Passage (Q9 & Q10): It is neither economical nor easy to keep a check on each and every activity in an organisation. Control should, therefore, focus on key result areas (KRAs) which are critical to the success of an organisation. These KRAs are set as the critical points. If anything goes wrong at the critical points, the entire organisation suffers. For instance, in a manufacturing organisation, an increase of 5 per cent in the labour cost may be more troublesome than a 15 per cent increase in postal charges.

In the context of the management cycle, why should control focus primarily on Key Result Areas (KRAs)?

A Because checking every activity is economical and easy

B Because routine problems are impossible for subordinates to handle

C Because anything going wrong at critical points makes the entire organisation suffer

D Because KRAs deal strictly with postal charges

💡 Short Explanation

Managers have limited time and resources. Focus must be on "Critical Points." Failure in these areas has a "multiplier effect" on the whole firm.

✅ Correct Answer Explanation

This is the principle of Critical Point Control. It suggests that management should focus on Key Result Areas (KRAs) because these are the pillars of the organization. If a critical area (like production quality or major costs) fails, it impacts the entire organization's survival, unlike minor deviations in non-critical areas.

❓ Why Other Options Are Incorrect

Option A → Checking everything is actually expensive and difficult.
Option B → Subordinates should handle routine problems; management focuses on the big picture.
Option D → Postal charges were used in the passage as an example of a non-critical area.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: The phrase "anything goes wrong at the critical points, the entire organisation suffers" is pulled directly from the provided text.

Final Logic: Focus where the impact is greatest.

🧠 Memory Trick

KRA = Key to Reality.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Analyzing Deviations (Critical Point Control)

📄 Passage

How does focusing on KRAs act as a feedback system for managers?

A It hides routine problems from the top management

B It ensures managers focus their attention and talent on significant areas needing immediate action

C It forces the manager to review the 15 per cent increase in postal charges first

D It completely replaces the need for setting performance standards

💡 Short Explanation

KRAs act as a "filter" for information. Managers only get "feedback" on what truly matters. This improves decision-making speed and quality.

✅ Correct Answer Explanation

By identifying KRAs, the control system acts as a feedback mechanism that signals only the most important issues to the manager. This prevents "information overload" and ensures that managerial talent is applied where it can have the most significant impact on the organization's success.

❓ Why Other Options Are Incorrect

Option A → While it "filters" routine problems, the purpose isn't to "hide" them but to delegate them.
Option C → The passage explicitly says labour cost (5%) is more important than postal charges (15%).
Option D → You still need standards for KRAs; you just prioritize which ones to watch closely.

🎯 Strategy

Used: Substitution

Application: Replace "Feedback System" with "Information Filter." Option B correctly describes how focusing on KRAs filters information for the manager.

Final Logic: Focus on what matters to fix what matters.

🧠 Memory Trick

KRA = Manager's Spotlight.

📚 Batch 2: Questions 11–20

11 When assembling parts in a factory, what is the best sequence to ensure efficient utilisation and minimize spoilage?

A Assemble the product -> Check parts -> Report deviations

B Check each part -> Assemble the product -> Set standard

C Set standards -> Check parts continuously during the task before assembling

D Check parts only at the end of the year

💡 Short Explanation

Standards must precede action. Continuous checking prevents "compounding" of errors. Checking during production is better than checking after.

✅ Correct Answer Explanation

Efficient resource use requires proactive control. By Setting standards first, you know what a "good" part looks like. By checking parts continuously during the process, you catch defects before they are built into a final product, thus minimizing wastage of subsequent labor and materials (spoilage).

❓ Why Other Options Are Incorrect

Option A → Checking after assembly is too late; if a part was bad, the whole product might be spoiled.
Option B → You cannot check a part properly if you haven't set a standard to check it against first.
Option D → Yearly checks are for auditing, not for operational spoilage control.

🎯 Strategy

Used: Sequential Logic

Application: Control is most effective when it is "concurrent" (happening during the task) rather than just "post-action."

Final Logic: Catch errors early to save resources.

🧠 Memory Trick

Check as you go, to save your dough.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Importance of Controlling (Efficient use of resources)

12 In a small organisation, to check the effective usage of resources, a manager might check every piece produced. In a large organisation, what technique is practically used?

A 100% census checking

B Completely ignoring quality checks

C Sample checking

D Checking external environmental factors

💡 Short Explanation

Large scale production makes 100% inspection impossible/costly. Sample checking is statistically reliable. It balances accuracy with economy.

✅ Correct Answer Explanation

In large-scale manufacturing, it is neither economical nor physically possible to inspect every single item (100% census). Therefore, managers use Sample Checking, where random items from a batch are inspected. If the sample meets the standards, the entire batch is assumed to be acceptable.

❓ Why Other Options Are Incorrect

Option A → This is "census checking," which the question identifies as impractical for large organizations.
Option B → Ignoring checks would lead to a total breakdown of the control system.
Option D → External factors are important for planning, but internal resource usage is checked through internal output.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Large scale production requires "Efficiency" in the control process itself. Sampling is the standard efficient technique.

Final Logic: Big size = Sample check. Small size = Full check.

🧠 Memory Trick

Taste a spoon, not the whole pot (Sampling).

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Controlling Process (Measurement of Performance)

13 Some deviation in performance can be expected in all activities. Before analyzing causes, what must management establish?

A The acceptable range of deviations

B The final penalty for employees

C A completely new planning cycle

D The exact cost of a new expensive control system

💡 Short Explanation

Total perfection is impossible. Managers need to know what "minor" means. This range is often called the "tolerance limit."

✅ Correct Answer Explanation

Not every deviation requires a manager's time. To implement "Management by Exception," management must first define an acceptable range of deviations. Only if the actual performance falls outside this "tolerance zone" does it require analysis and corrective action.

❓ Why Other Options Are Incorrect

Option B → Penalties are a last resort after analysis, not a prerequisite for it.
Option C → You only start a new cycle if the old plans are completely irrelevant.
Option D → The cost of the system is a planning consideration, not a step in deviation analysis.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: The concept of "tolerance limits" or "acceptable range" is the specific NCERT terminology used for this step.

Final Logic: You can't identify an "exception" if you haven't defined what's "normal."

🧠 Memory Trick

Range of Tolerance = Manager's Peace of Mind.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Analyzing Deviations

14 During deviation analysis, if a project delay is caused by structurally defective processes that cannot be corrected through immediate managerial action, what must be done?

A Punish the subordinates

B The standards may have to be revised

C Increase the postal charges

D Force overtime on the defective process

💡 Short Explanation

Sometimes the "plan" is the problem, not the "performance." If a process is defective, old targets become unrealistic. Standards must adapt to organizational reality.

✅ Correct Answer Explanation

If analysis shows that the deviation is not due to employee effort but due to a structurally defective process or unrealistic expectations, taking "corrective action" on the workers won't help. In such cases, the management must revise the standards downward or change the process itself to reflect what is actually achievable.

❓ Why Other Options Are Incorrect

Option A → Punishment is unfair if the process itself is the defect.
Option C → This is irrelevant to project delays or structural defects.
Option D → Forcing overtime on a "defective" process just produces more defects faster.

🎯 Strategy

Used: Elimination

Application: Eliminate A and D as they are "punitive" and don't fix the "structural" issue mentioned in the prompt.

Final Logic: If the goal is impossible, change the goal.

🧠 Memory Trick

Defective Plan? → Revise the Scan (Standard).

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Controlling Process (Taking Corrective Action)

15 Planning based on facts makes the controlling function easier because:

A It provides vague, qualitative benchmarks

B It sets standards in precise quantitative terms for comparison

C It prevents employees from resisting CCTV monitoring

D It guarantees zero deviations

💡 Short Explanation

Quantitative standards are objective. Comparison becomes a simple math exercise. It removes manager bias from the evaluation.

✅ Correct Answer Explanation

Controlling is much easier when standards are quantitative (e.g., "produce 100 units" vs "work hard"). Facts and figures allow for an objective, unambiguous comparison between actual and planned results. This reduces arguments and makes the "comparison" step of the control process very clear.

❓ Why Other Options Are Incorrect

Option A → Vague benchmarks make controlling harder, not easier.
Option C → Facts in planning don't necessarily reduce resistance to physical monitoring like CCTVs.
Option D → No system can "guarantee" zero deviations; it only helps manage them.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: "Easier control" is almost always linked to "Quantitative standards" in management theory.

Final Logic: Numbers don't lie, and they are easy to compare.

🧠 Memory Trick

Facts = Figures = Fast Control.

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

16 If a fast-food chain's plan is to improve customer satisfaction, what is the most appropriate standard to check performance?

A Increase in capital expenditure

B Time taken by a customer to wait for a table and place the order

C Gross profit ratio

D Number of pieces produced in a batch

💡 Short Explanation

Standards must match the objective. Goal = Satisfaction; Metric = Speed/Service. Wait time is a direct indicator of customer experience.

✅ Correct Answer Explanation

Standards must be relevant to the goal. If the goal is customer satisfaction, the manager should look at metrics that affect the customer's experience. Wait time (Option B) is a critical quantitative standard for service quality in fast food.

❓ Why Other Options Are Incorrect

Option A → Capital expenditure measures investment, not customer happiness.
Option C → Profit is a financial result; a company can have high profit but low satisfaction (in the short term).
Option D → Pieces produced measures efficiency/volume, not the quality of the customer's experience.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Align the "Goal" (Satisfaction) with the most relevant "Measure" (Wait Time).

Final Logic: Customers care about their time, not your capital expenditure.

🧠 Memory Trick

Fast Food = Fast Service (Wait time).

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

17 Why is controlling described as both a backward-looking and forward-looking continuous activity?

A It only looks at past errors and stops the management cycle

B It is an intellectual process of prescribing actions without evaluating them

C It acts as a postmortem of past activities but uses corrective action to improve future performance

D It is an inseparable twin of organising, not planning

💡 Short Explanation

Backward: Analyzing what happened (Post-mortem). Forward: Planning better for the next time (Correction). This dual nature keeps the cycle moving.

✅ Correct Answer Explanation

Controlling is backward-looking because it examines past performance to find deviations. It is forward-looking because the corrective actions and feedback it provides are used to improve plans and performance in the future. It doesn't just stop at finding mistakes; it seeks to prevent them from recurring.

❓ Why Other Options Are Incorrect

Option A → It doesn't stop the cycle; it restarts it.
Option B → Controlling is evaluative; planning is the prescriptive intellectual process.
Option D → Controlling is the "twin" of Planning, not Organising.

🎯 Strategy

Used: Option Grouping

Application: Option C perfectly captures both the "backward" (postmortem) and "forward" (future performance) aspects mentioned in the question.

Final Logic: Learn from the past to secure the future.

🧠 Memory Trick

Rear-view mirror (Backward) + Windshield (Forward).

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

18 As an ongoing activity, an organisation installs a software program to log computer keystrokes continuously. This specific control primarily aims to:

A Make efficient use of financial investments

B Facilitate coordination between different departments

C Keep a close check to minimise dishonest behaviour

D Help define quantitative standards

💡 Short Explanation

Keystroke logging is a form of employee monitoring. Monitoring creates a "psychological pressure" to perform. It reduces time-wasting or data theft (dishonesty).

✅ Correct Answer Explanation

One of the important functions of controlling is maintaining order and discipline. By monitoring employee activities (via CCTVs or keystroke logging software), an organization minimizes dishonest behavior and ensures that employees are focused on work during office hours.

❓ Why Other Options Are Incorrect

Option A → Software cost is a financial outlay, not necessarily a way to measure financial usage.
Option B → Logging individuals doesn't naturally improve communication between departments.
Option D → Logging is a "measurement" tool, not a "definition" tool for standards.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Logging keystrokes is a surveillance-style control. Surveillance is primarily used for "Order and Discipline."

Final Logic: Being watched keeps people honest.

🧠 Memory Trick

Watchful eye = No lie.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Importance of Controlling (Ensuring order and discipline)

19 Management by exception helps an organisation achieve its objectives because:

A It identifies critical problems which need timely action to keep the organisation on track

B It forces managers to deal with every routine deviation personally

C It increases the cost of installing the control system

D It eliminates the need for subordinates

💡 Short Explanation

Saves managerial time. Ensures urgent issues get immediate attention. Routine tasks are delegated to subordinates.

✅ Correct Answer Explanation

Management by Exception (MBE) ensures that managers don't get bogged down in minor details. By focusing only on critical problems (exceptions), managers can take timely action where it matters most, ensuring the organization stays on track to achieve its high-level objectives.

❓ Why Other Options Are Incorrect

Option B → This is the opposite of MBE; MBE avoids routine deviations.
Option C → MBE actually makes the system more economical by saving managerial time (cost).
Option D → MBE requires subordinates to handle the routine deviations while the manager handles the exceptions.

🎯 Strategy

Used: Odd One Out

Application: Options B, C, and D all describe negative or incorrect outcomes of a management principle. Option A is the only positive functional benefit.

Final Logic: Save the manager's time for the big problems.

🧠 Memory Trick

Focus on the Flaws that matter.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Analyzing Deviations (Management by Exception)

20 When striving to maintain standards, control systems often face limitations. Which of the following makes measurement of performance against standards a difficult task?

A Clear quantitative targets

B Employee morale and job satisfaction

C Units produced in a week

D Number of defective pieces

💡 Short Explanation

Qualitative factors are hard to measure. There is no "ruler" for happiness or morale. Subjective judgment can lead to inaccuracy.

✅ Correct Answer Explanation

One of the major limitations of controlling is the difficulty in setting and measuring standards for qualitative factors. While we can easily count "Units produced" (Option C) or "Defective pieces" (Option D), it is very difficult to measure exactly how much "morale" has improved, making control over human behavior complex.

❓ Why Other Options Are Incorrect

Option A → Clear quantitative targets make measurement easier, not difficult.

Option C & D → These are easily countable numerical figures.

🎯 Strategy

Used: Dimensional/Unit Analysis

Application: Options A, C, and D are all "Quantitative." Option B is "Qualitative."

Final Logic: You can't put a number on a feeling.

🧠 Memory Trick

Feelings = Hard to Measure.

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

CUET UG Business Studies Test 2 Meaning and Nature of Controlling

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