CUET UG Business Studies Booster Test 2 Techniques of Controlling -

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CUET UG Business Studies Test 2 Techniques of Controlling

⏱️ 30 Minutes

❓ 20 Questions

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

CUET UG Business Studies Test 2 Techniques of Controlling

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QUESTION 1 OF 20

Match the concepts related to control methods with their descriptions:

List 1	List 2
1. Controlling	A. Ensures resources are used effectively to achieve predetermined goals
2. Pervasive function	B. Required at all levels of management (top, middle, lower)
3. Coordination in action	C. Finds out how far actual performance deviates from standards
4. Goal-oriented	D. Provides direction to all efforts so they work together to meet targets

Answer Review

1 Match the concepts related to control methods with their descriptions:

List 1	List 2
1. Controlling	A. Ensures resources are used effectively to achieve predetermined goals
2. Pervasive function	B. Required at all levels of management (top, middle, lower)
3. Coordination in action	C. Finds out how far actual performance deviates from standards
4. Goal-oriented	D. Provides direction to all efforts so they work together to meet targets

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

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

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

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

💡 Short Explanation

Controlling is the act of checking deviations from standards. Pervasive means it exists everywhere (all levels). Coordination aligns efforts; Goal-orientation focuses on targets.

✅ Correct Answer Explanation

This matching exercise defines the nature and importance of controlling. Controlling (1-C) is specifically the process of finding deviations. It is a Pervasive function (2-B) because it is not restricted to top management but is performed by managers at all levels. It facilitates Coordination in action (3-D) by providing a unified direction to efforts. Finally, it is Goal-oriented (4-A) because its primary aim is to ensure that resources are used to reach predetermined objectives.

❓ Why Other Options Are Incorrect

Option B → Incorrectly matches Controlling with goal achievement (which is the result, not the definition) and misplaces Pervasiveness.
Option C → Incorrectly matches Controlling with Coordination.
Option D → Incorrectly matches Controlling with Pervasiveness.

🎯 Strategy

Used: Option Grouping

Application: Pairing "Pervasive" with "All levels" immediately narrows the choices to Option A.

Final Logic: Match definitions to the specific management characteristic they represent.

🧠 Memory Trick

Control = Compare; Pervasive = Present everywhere.

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

2 Assertion (A): Measurement of work using performance tools should always be done only after the task is fully completed.
Reason (R): In certain cases, like an assembling task, each part produced should be checked before assembling.

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

B A is true, but R is false.

C A is false, but R is true.

D Both A and R are false.

💡 Short Explanation

Measurement can happen during or after performance. Waiting until the end can lead to wasted resources if errors happen early. "Check before assembly" is a classic example of in-process measurement.

✅ Correct Answer Explanation

Assertion (A) is false because measurement is not strictly a "post-task" activity. NCERT notes that measurement should be done during performance wherever possible to ensure timely correction. Reason (R) is true and actually provides the counter-evidence to the assertion; checking parts before assembly allows a manager to catch defects before they are finalized, saving costs and time.

❓ Why Other Options Are Incorrect

Options A & B → These assume the assertion is true, but "always" and "only" make the assertion factually incorrect in a management context.

Option D → Incorrect because the Reason accurately describes a real-world controlling practice.

🎯 Strategy

Used: Extreme Word Filter

Application: The words "always" and "only" in the Assertion typically indicate an incorrect statement.

Final Logic: Performance measurement can be concurrent (during) or final (after).

🧠 Memory Trick

Measure Concurrently to Correct.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Measurement of Actual Performance

3 A small organisation checks each piece produced to ensure it conforms to quality specifications. However, as the business grows into a large organisation, this personal observation of every unit becomes impossible. What should the manager decide to do next based on the text?

A Stop checking for quality entirely.

B Check certain pieces at random, known as sample checking.

C Change the quantitative standards to qualitative standards.

D Rely solely on external factors for quality control.

💡 Short Explanation

Personal observation is for small-scale operations. Large-scale operations require statistical methods. Sample checking provides a reliable estimate without checking 100% of units.

✅ Correct Answer Explanation

As an organization grows, checking every single unit (100% inspection) becomes too costly and time-consuming. According to NCERT, the logical progression for measurement is to use sample checking. This involves selecting and checking items at random intervals to ensure they meet the quality standards, providing a statistically reliable view of the entire batch's quality.

❓ Why Other Options Are Incorrect

Option A → Quality control is essential; stopping it would lead to business failure.
Option C → Growth doesn't change the nature of the product from quantitative to qualitative.
Option D → External factors are uncontrollable; management must control internal quality.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Moving from "Small" to "Large" requires moving from "Individual" to "Statistical" checks.

Final Logic: Sample checking is the industrial standard for large-scale quality control.

🧠 Memory Trick

Small = Seeing; Large = Little samples.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Measurement of Actual Performance

4 Which of the following is NOT a limitation of controlling when relying on traditional techniques like statistical reports?

A Difficulty in setting quantitative standards

B Complete control over external factors like government policies

C Resistance from employees

D Costly affair for small enterprises

💡 Short Explanation

Controlling has several inherent limitations. Managers cannot control the external environment (government, competition). Options A, C, and D are standard limitations listed in NCERT.

✅ Correct Answer Explanation

Option B is the correct answer because it is not a limitation; it is actually an impossibility. An organization generally has no control over external factors like government policies, technological changes, or market competition. The other options (A, C, and D) are indeed limitations: setting standards for qualitative tasks is hard, employees often dislike being watched, and advanced systems are expensive.

❓ Why Other Options Are Incorrect

Option A, C, & D → These are all recognized and explicitly mentioned limitations of a controlling system in the NCERT textbook.

🎯 Strategy

Used: Odd One Out

Application: Options A, C, and D represent things that make control "harder" (limitations). Option B is a statement about "complete control," which is never true in management.

Final Logic: Management control is limited to internal factors.

🧠 Memory Trick

Internal = Controllable; External = Uncontrollable.

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

📄 Passage

Category: Budgetary Control Passage: "When a manager sets critical points and focuses attention on significant deviations which cross the permissible limit, the following advantages accrue: 1. It saves the time and efforts of managers as they deal with only significant deviations. 2. It focuses managerial attention on important areas.",

According to the passage, how does focusing on significant deviations help a manager handling a budget system?

A By making them check every single minor financial discrepancy.

B By saving their time and efforts to deal only with significant financial deviations.

C By eliminating the need for a budget entirely.

D By ensuring that the budget controls external environmental changes.

💡 Short Explanation

Management by Exception focuses on "exceptions." Minor errors are ignored to save energy. Major errors get immediate attention.

✅ Correct Answer Explanation

The passage explicitly states that focusing on significant deviations saves the time and efforts of managers. In a budget system, if every minor difference of a few cents was investigated, the manager would never finish. By only addressing deviations that cross a "permissible limit," the manager ensures they are using their high-value time on problems that actually impact the bottom line.

❓ Why Other Options Are Incorrect

Option A → This contradicts the "Management by Exception" principle mentioned in the passage.
Option C → The budget is the standard; you cannot have the "check" without the "standard."
Option D → Budgets are internal tools and cannot control external factors like government policy.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: The phrase "saves the time and efforts" is taken directly from the provided text.

Final Logic: Filter out minor issues to focus on major impacts.

🧠 Memory Trick

Significant = Save time.

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

📄 Passage

Which principle of management control is directly described in the passage for controlling costs?

A Management by Exception

B Cost volume relation

C Return on Investment

D Personal observation

💡 Short Explanation

The passage mentions "significant deviations" and "permissible limits." This is the textbook definition of Management by Exception (MBE). It suggests that an attempt to control everything results in controlling nothing.

✅ Correct Answer Explanation

The passage describes the principle of Management by Exception. This principle holds that only significant deviations which go beyond the permissible limit should be brought to the notice of management. It is based on the logic that a manager who tries to control everything often ends up controlling nothing efficiently.

❓ Why Other Options Are Incorrect

Option B → This refers to Breakeven analysis, not the filtering of deviations.
Option C → This is a financial ratio for measuring profitability.
Option D → This is a method of measurement, not a principle for analyzing which deviations to prioritize.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Identifying the core philosophy: "Deal only with significant deviations" = MBE.

Final Logic: Exception-based reporting is the heart of Management by Exception.

🧠 Memory Trick

Only the Exception gets Effort.

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

7 Statement I: Breakeven analysis is considered a modern technique of managerial control.
Statement II: Standards can be set in both quantitative as well as qualitative terms.

A Both Statements are correct

B Both Statements are incorrect

C Only Statement I is correct

D Only Statement II is correct

💡 Short Explanation

Breakeven analysis is a "Traditional" technique. Standards are targets (numbers or descriptions). Management uses both types to be comprehensive.

✅ Correct Answer Explanation

Statement I is incorrect because Breakeven Analysis is classified as a Traditional Technique, not a modern one. Statement II is correct as standards can be expressed numerically (Quantitative, e.g., 500 units) or descriptively (Qualitative, e.g., improving employee morale or brand image). Since only the second statement is factually accurate according to NCERT, Option D is the correct choice.

❓ Why Other Options Are Incorrect

Option A → Incorrect because Statement I misclassifies a traditional tool.
Option B → Incorrect because Statement II is factually true.
Option C → Incorrect because it validates the wrong statement.

🎯 Strategy

Used: Elimination

Application: Eliminate any option that calls Breakeven a "modern" technique.

Final Logic: Breakeven is old/traditional; Standards are dual-natured (Quant/Qual).

🧠 Memory Trick

Breakeven is Basic (Traditional).

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Techniques of Managerial Control

8 Arrange the steps to effectively control profits after actual performance is measured:
1. Taking corrective action
2. Analysing deviations
3. Comparison of actual performance with standards

A 3, 2, 1

B 1, 2, 3

C 2, 3, 1

D 3, 1, 2

💡 Short Explanation

First, find the gap (Comparison). Second, find out why the gap happened (Analysis). Third, fix the gap (Action).

✅ Correct Answer Explanation

The controlling process flow after measurement is sequential: 1. Comparison (3): Find the numerical or qualitative difference between what happened and what was planned. 2. Analysis (2): Use Critical Point Control or Management by Exception to understand the "why" and "how much" of the deviation. 3. Action (1): Implement changes to ensure the deviation doesn't happen again.

❓ Why Other Options Are Incorrect

Option B → You cannot fix (1) something before you compare (3) and analyze (2) it.

Option C & D → These misplace the "Analysis" and "Comparison" steps, which must happen before "Action."

🎯 Strategy

Used: Sequential Logic

Application: You must "See it" (Compare), "Understand it" (Analyze), then "Fix it" (Action).

Final Logic: Follow the standard NCERT controlling cycle.

🧠 Memory Trick

Compare →Analyze →Act (CAA).

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

9 Under advanced modern techniques, why is controlling sometimes considered a "backward-looking" function?

A Because it prepares plans for future conditions.

B Because it is like a postmortem of past activities to find out deviations from standards.

C Because it is basically an intellectual process involving thinking.

D Because it solely focuses on consistent, articulated programmes.

💡 Short Explanation

Control looks at things already done. A "postmortem" is an exam of the past to improve the future. This differentiates it from the forward-looking nature of planning.

✅ Correct Answer Explanation

Controlling is backward-looking because it examines events that have already occurred. It acts as a "postmortem" of past performance to see if it lived up to the standards. By looking at these past mistakes or successes, managers can make better plans for the future. NCERT emphasizes that while it looks backward, its purpose is to ensure future success.

❓ Why Other Options Are Incorrect

Option A → This describes the forward-looking aspect of Planning.
Option C → This describes the nature of Planning as a mental exercise.
Option D → This refers to the consistency required in Planning programs.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Linking "Backward" to "Postmortem" and "Past."

Final Logic: Checking the "Past" = Backward-looking.

🧠 Memory Trick

Controlling = Rearview mirror.

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

10 Which analytical tool helps in improving future planning by providing information derived from past experience?

A Unrealistic standards

B The controlling process itself

C External government policies

D Employee resistance

💡 Short Explanation

Control provides feedback. Feedback shows what worked and what didn't. This data is used to set better plans for the next cycle.

✅ Correct Answer Explanation

The controlling process itself is the ultimate tool for improving future planning. It acts as a feedback loop. When a manager completes the controlling cycle, they discover if their standards were too high, too low, or if their processes were flawed. This information is then funneled back into the next planning stage, making the next set of plans more realistic and grounded in experience.

❓ Why Other Options Are Incorrect

Option A → These hinder planning rather than helping it.
Option C → These are external constraints, not internal analytical tools derived from experience.
Option D → This is a negative outcome/limitation that management must overcome, not a tool for planning.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Understanding that Controlling and Planning are a "Circular" relationship where one feeds the other.

Final Logic: The "check" of today is the "data" for tomorrow's plan.

🧠 Memory Trick

Control = Feedback for the future.

📚 Batch 2: Questions 11–20

11 For a finance and accounting department using ratio analysis, which standard is used to gauge performance according to the text's table?

A Labour turnover

B Advertising expenditures

C Flow of capital / Liquidity

D Sales volume

💡 Short Explanation

Financial departments focus on money and solvency. Liquidity is the ability to pay short-term debts. Ratios like the "Current Ratio" measure this flow.

✅ Correct Answer Explanation

In the context of financial and accounting control, Ratio Analysis is used to evaluate the financial health of the firm. One of the primary standards mentioned for this department is the Flow of capital or Liquidity. This ensures the company has enough cash and liquid assets to meet its obligations, which is measured by calculating liquidity ratios.

❓ Why Other Options Are Incorrect

Option A → This is a Human Resource (Personnel) standard.

Option B & D → These are Marketing department standards.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Linking the "Finance" department to "Capital/Liquidity."

Final Logic: Finance handles cash; Liquidity is the measure of cash flow.

🧠 Memory Trick

Finance = Cash/Capital.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Setting Performance Standards

12 How does a technique like Return on Investment (ROI) help in controlling as per the general importance of control?

A It increases the wastage and spoilage of resources.

B It ensures resources are used in the most effective and efficient manner.

C It causes resistance from employees who prefer personal observation.

D It eliminates the need for organisational coordination.

💡 Short Explanation

ROI measures the "profit per dollar invested." This forces managers to use capital wisely. It aligns with the "Efficiency" goal of controlling.

✅ Correct Answer Explanation

One of the key benefits of controlling is making efficient use of resources. A technique like Return on Investment (ROI) allows management to see which departments are using their allocated capital most effectively to generate profit. By highlighting underperforming areas, ROI ensures that resources are redirected or better managed to achieve maximum efficiency.

❓ Why Other Options Are Incorrect

Option A → Controlling is designed to reduce wastage, not increase it.
Option C → Employees generally prefer objective data (like ROI) over the "feeling" of being watched (personal observation).
Option D → Controlling facilitates coordination; it never eliminates the need for it.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Connecting a profitability tool (ROI) to the management goal of "Efficiency."

Final Logic: High ROI = High Efficiency.

🧠 Memory Trick

ROI = Resource Optimization Index.

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

13 When standardizing a task in responsibility accounting, a manager should try to set standards in what terms to make comparison easier?

A Vague qualitative terms

B Precise quantitative terms

C Broad subjective terms

D Informal terms

💡 Short Explanation

Numbers are easier to compare than opinions. "10% increase" is clearer than "a good increase." Quantitative standards reduce bias and confusion.

✅ Correct Answer Explanation

To make the controlling process objective and simple, standards should be set in precise quantitative terms (numbers, percentages, or time). When a target is numerical, it is very easy to measure actual performance against it and calculate the exact deviation. This removes the guesswork and subjectivity that come with vague or qualitative descriptions.

❓ Why Other Options Are Incorrect

Option A & C → Vague or broad terms lead to disagreement and difficulty in identifying if a goal was truly met.

Option D → Formal systems like Responsibility Accounting require formal, documented standards.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Identifying the most "Scientific" and "Clear" way to set goals.

Final Logic: Numbers = Clarity.

🧠 Memory Trick

Quantity = Quick Comparison.

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

14 In Human Resource Management performance areas, which of the following is a standard used to gauge performance?

A Inventory control

B Capital expenditures

C Labour absenteeism

D Sales expense

💡 Short Explanation

HR deals with people (the workforce). High absenteeism indicates morale or management problems. It is a measurable standard for HR effectiveness.

✅ Correct Answer Explanation

Within the Human Resource (Personnel) function, management sets standards related to employee behavior and stability. Labour absenteeism (the rate at which workers miss work) and Labour turnover (the rate at which they leave) are the primary quantitative standards used to gauge the performance and health of the workforce.

❓ Why Other Options Are Incorrect

Option A → This is a Production/Operations standard.
Option B → This is a Finance standard.
Option D → This is a Marketing/Sales standard.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Linking "Human Resource" to "Labour" related metrics.

Final Logic: HR manages people; Absenteeism measures people.

🧠 Memory Trick

HR = Human (Labour) count.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Setting Performance Standards

15 Which of the following is true about Management Audit as an evaluation technique?

A It is categorized as a traditional technique of control.

B It is a modern technique of managerial control.

C It relies strictly on sample checking of physical products.

D It is only used in educational institutions.

💡 Short Explanation

Management Audit is an overall check of management efficiency. It is a relatively new concept compared to observation or budgets. It is listed under the "Modern" category in NCERT.

✅ Correct Answer Explanation

Management Audit is a Modern Technique of managerial control. It is a systematic appraisal of the entire performance of management. Its purpose is to check how well the management is performing its functions and to improve future efficiency by identifying gaps in policies or leadership. It is used across all types of large business organizations, not just specific institutions.

❓ Why Other Options Are Incorrect

Option A → Traditional techniques are older, simpler methods (like budgets).
Option C → Sample checking of products is part of production control, not a "Management Audit."
Option D → It is primarily used in the corporate world for business efficiency.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Locating Management Audit in the "Modern" list of the NCERT techniques table.

Final Logic: High-level system checks are modern.

🧠 Memory Trick

Management Audit = Modern.

📚 Class XII – Business Studies – Chapter: Controlling – Topic: Management Audit

16 An evaluation system might need to revise its standards under what condition?

A Whenever an employee performs perfectly.

B In case the deviation cannot be corrected through managerial action.

C When the actual performance matches the standard exactly.

D When standard setting is done in precise quantitative terms.

💡 Short Explanation

Sometimes goals are simply impossible (unrealistic). If efficiency is high but targets are missed, the target is likely wrong. Revising the standard makes the goal realistic again.

✅ Correct Answer Explanation

Corrective action usually focuses on fixing performance. However, if the performance is already optimal and the gap still exists (often due to external changes like new technology or government policy), it means the standard is unrealistic. In such cases, the deviation cannot be corrected by managerial action (like more training), and therefore, the standards must be revised or lowered to reflect the new reality.

❓ Why Other Options Are Incorrect

Option A & C → If things are perfect or match exactly, the system is working; there is no need to change the goal.

Option D → Quantitative terms make standards better, but being quantitative isn't a reason to change them.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Identifying the "last resort" corrective action when the environment changes.

Final Logic: If you can't reach the bar despite your best effort, move the bar.

🧠 Memory Trick

Can't fix work? Fix the goal.

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

17 What is a likely corrective action if a PERT network reveals an important project is running behind schedule?

A Decreasing the budget of the project immediately.

B Assigning additional workers and equipment to the project.

C Changing the project from quantitative to qualitative standards.

D Canceling the project entirely without review.

💡 Short Explanation

PERT/CPM track project time. If behind, you need more "speed." Adding resources (labor/tools) is the standard way to catch up.

✅ Correct Answer Explanation

PERT is used to control time in complex projects. If the system shows a delay, management must take corrective action to bring the project back to the planned timeline. The most direct way to do this is by increasing the resources applied to the task—assigning additional workers and equipment—to speed up the remaining work.

❓ Why Other Options Are Incorrect

Option A → Decreasing the budget would likely slow down the project even further.
Option C → Changing the type of standard doesn't fix a schedule delay.
Option D → Cancellation is an extreme move; management should first try to fix the deviation.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Matching a "Time" problem with a "Resource" solution.

Final Logic: More resources = Faster completion.

🧠 Memory Trick

Behind? Boost resources.

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

18 How do network techniques like CPM rely on planning?

A Planning provides the standards of performance which serve as the basis of controlling.

B Planning makes CPM completely unnecessary.

C CPM generates the plans organically without forward-looking processes.

D CPM is blind because it is independent of planning.

💡 Short Explanation

You can't have a "Critical Path" (CPM) without a project plan. Planning sets the sequence and duration of tasks. CPM then monitors if the work follows that plan.

✅ Correct Answer Explanation

Every control technique, including CPM, is dependent on planning. Planning provides the standards (the schedule, the sequence of events, the deadlines) which act as the benchmark for control. Without a pre-defined plan, CPM would have no "path" to monitor or "critical" tasks to identify. As NCERT states, "controlling is blind without planning."

❓ Why Other Options Are Incorrect

Option B → CPM is a tool for planning and controlling; they work together.
Option C → CPM is a tool used in planning; it doesn't replace the human intellectual process of planning.
Option D → Controlling (including CPM) is blind without planning, but it is not independent; it is deeply connected.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Reaffirming the "Inseparable Twins" relationship between Planning and Control.

Final Logic: The plan is the blueprint; CPM is the progress check.

🧠 Memory Trick

Plan = Blueprint; CPM = Tape measure.

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

19 What is the core benefit of using an Information System (like MIS) for control according to the "Importance of Controlling" section?

A It ensures activities are performed efficiently and coordinates efforts.

B It provides a way to avoid setting any performance standards.

C It decreases employee motivation by avoiding clear standards.

D It completely controls external factors like technological changes.

💡 Short Explanation

MIS provides the right data at the right time. This allows for better coordination between departments. Better information leads to higher overall efficiency.

✅ Correct Answer Explanation

A Management Information System (MIS) is a modern tool that supports the general importance of controlling. By providing managers with accurate and timely data, it helps ensure activities are performed efficiently and facilitates coordination in action. When every department has the same information, they can work together more effectively toward organizational goals.

❓ Why Other Options Are Incorrect

Option B → MIS requires standards to have something to report deviations against.
Option C → Controlling actually improves motivation by providing clear standards, not avoiding them.
Option D → No system, even MIS, can "completely control" external factors like technology.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: Linking a "Modern Tool" to the "Primary Benefits" of control (Efficiency/Coordination).

Final Logic: Good info = Good coordination.

🧠 Memory Trick

Information = Integration (Coordination).

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

20 A company uses data support software to log key strokes and send encrypted reports to track dishonest employees. This aligns with which importance of controlling?

A Facilitating coordination in action

B Ensuring order and discipline

C Difficulty in setting quantitative standards

D Making efficient use of physical resources

💡 Short Explanation

Control helps monitor employee behavior. Tracking dishonesty prevents fraud and misconduct. This creates a safe and honest work environment.

✅ Correct Answer Explanation

One of the major benefits listed in NCERT under the Importance of Controlling is Ensuring order and discipline. By using tools (like key-loggers or reports) to monitor activities, management creates an environment where dishonest behavior is minimized. The knowledge that a control system is in place discourages undesirable activities and ensures that employees follow the rules and ethics of the organization.

❓ Why Other Options Are Incorrect

Option A → This refers to aligning different departments, not stopping dishonesty.
Option C → This is a limitation of controlling, not a benefit alignment.
Option D → While it protects resources, tracking "dishonest employees" is primarily a matter of organizational discipline and human behavior.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: "Tracking dishonest employees" directly maps to the concept of "Discipline."

Final Logic: Monitoring behavior = Maintaining order.

🧠 Memory Trick

Watchful eye = Orderly guy.

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

CUET UG Business Studies Test 2 Techniques of Controlling

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