Business Studies MCQs for Class 12 with Answers Chapter 8 Controlling

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Controlling Class 12 Business Studies MCQs Pdf

1. Which of the following is not an importance of controlling function?
(a) It ensures order and discipline.
(b) It restricts co-ordination in action.
(c) It helps in judging accuracy of standards.
(d) It improves employee motivation.

Answer/Explanation

Answer: b
Explanation:
(b) It facilitates co-ordination in action


2. Which of the following statements does not highlight the relationship between planning and controlling?
(a) Planning and controlling are separable twins of management.
(b) Planning without controlling is meaningless, controlling without planning is blind.
(c) Planning is prescriptive, controlling is evaluative.
(d) Planning and controlling are interrelated and interdependent.

Answer/Explanation

Answer: a
Explanation:
(a) Planning and controlling are inseparable twins


3. Om Prakash has set up a small business unit for the manufacturing of detergent. In order to market the detergent in the local residential areas, he has appointed a team of ten salesmen. Each salesman is expected to sell at least 200 units of the detergent within a week’s time. Identify the point of importance of controlling being highlighted in the above case.
(a) Controlling helps in judging accuracy of standards.
(b) It ensures efficient use of resources.
(c) It helps in improving employee motivation.
(d) It facilitates co-ordination in action.

Answer/Explanation

Answer: c
Explanation:
(c) By making employees aware of the expected performance


4. It is the process of ensuring that events confirm to plans.
(a) Planning
(b) Controlling
(c) Organising
(d) Directing

Answer

Answer: b


5. The controlling function is performed by
(a) Top level management
(b) Lower level management
(c) Middle level management
(d) All of the above

Answer

Answer: d


6. Controlling function brings the management cycle back to the
(a) Organising function
(b) Directing function
(c) Planning function
(d) None of the above

Answer

Answer: c


7. Deviations are said to be positive in nature when
(a) Planned performance is more than the actual performance
(b) Actual performance is more than the planned performance
(c) Both planned and actual performances are same
(d) None of the above

Answer

Answer: b


8. Which of the following statements is true with respect to controlling function?
(a) It is a forward looking function.
(b) Is a backward looking function.
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: c


9. Identify the correct sequence of the steps involved in the controlling process.
(a) Measurement of actual performance, Taking corrective action, Setting performance standards, Comparison of actual performance with standards, Analysing deviations
(b) Comparison of actual performance with standards, Setting performance standards. Measurement of actual performance, Analysing deviations, Taking corrective action
(c) Setting performance standards, Measurement of actual performance, Comparison of actual performance with standards, Analysing deviations, Taking corrective action
(d) Taking corrective action, Measurement of actual performance, Comparison of actual performance with standards, Analysing deviations, Setting performance standards

Answer

Answer: c


10. Which of the following is a technique used for measuring actual performance?
(a) Random sampling
(b) Personal observation
(c) Performance reports
(d) All of the above

Answer

Answer: d


11. The comparison of actual performance with the planned performance becomes easier if the standards are set in
(a) Qualitative terms
(b) Quantitative terms
(c) Either of the above
(d) None of the above

Answer

Answer: b


12. This concept of Control Management is based on the belief that if you try to control everything, you may end up controlling nothing.
(a) Critical point control
(b) Key result areas
(c) Management by exception
(d) Deviations

Answer

Answer: c


13. When the deviations between the actual performance and the planned performance are within the limits
(a) A limited corrective action is required
(b) No corrective action is required
(c) A major corrective action is required
(d) None of the above

Answer

Answer: b


14. In an artificial plants manufacturing unit, the standard output set for a worker is 50 units per day. Dinesh produces 48 units in one day. In the given case, the value of deviation is
(a) -2
(b) + 2
(c) 98
(d) None of the above

Answer

Answer: a


15. The need for the controlling function is felt in
(a) Business organisations
(b) Political organisations
(c) Social organisations
(d) All of the above

Answer

Answer: d


16. Controlling is known as a backward-looking function because
(a) It relates to future course of action.
(b) It is like a post-mortem of the past activities
(c) To find out deviation, it aims at improving future performance.
(d) All of the above

Answer

Answer: b


17. Reducing the workers, absenteeism in a factory by 20% is an example of
(a) Quantitative standard
(b) Qualitative standard
(c) Deviation
(d) None of the above

Answer

Answer: a


18. Yash runs a logistic company. The Tour Incharges of each trip in the company are expected to submit a report to the Event Manager on the completion of every trip. Identify the step in the controlling process being described in the above lines.
(a) Setting of standards
(b) Measurement of actual performance
(c) Taking corrective action
(d) Analysing the deviations

Answer

Answer: b


19. In a marketing firm, the Financial Manager pays more attention towards an increase of 3% in the marketing cost as compared to a 15% increase in the courier expenses. Identify the concept being used by the manager.
(a) Management by exception
(b) Critical point control
(c) Corrective action
(d) None of the above

Answer

Answer: b


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