Generally an enterprise cannot control external factors such as government policies, ________, competition etc.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → technological changes
Option (1) technological changes — Correct. External factors lie outside the enterprise: government policies, technological changes, competition and so on. The enterprise cannot control them, and this is a limitation of controlling.
Option (2) structural drawbacks — Incorrect. Structural drawbacks are weaknesses in the organisation’s own structure. They are one of the causes found while analysing deviations.
Option (3) defective process — Incorrect. A defective process is a fault in the way work is done inside the firm. It is another cause of deviation that managers can correct.
Option (4) inadequacy of resources — Incorrect. Inadequacy of resources means too little money, staff or material for the work. It is also a cause of deviation, arising inside the firm.
NCERT (2026-27 Edition): “(ii) Little control on external factors: Generally an enterprise cannot control external factors such as government policies, technological changes, competition etc.” “Step 4: Analysing Deviations: … After identifying the deviations that demand managerial attention, these deviations need to be analysed for their causes. Deviations may have multiple causes for their origin. These include unrealistic standards, defective process, inadequacy of resources, structural drawbacks, organisational constraints and environmental factors beyond the control of the organisation. …” |