Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

Managers at a New York City import-export company suspected that two employees were robbing it. Corporate Defense Strategies (CDS) of Maywood, New Jersey, advised the firm to install a software program that could secretly log every single stroke of the suspects’ computer keys and send an encrypted e-mail report to CDS. Investigators revealed that the two employees were deleting orders from the corporate books after processing them, pocketing the revenues, and building their own company from within. The programme picked up on their plan to return to the office late one night to steal a large shipment of electronics. Police hid in the rafters of the firm’s warehouse, and when the suspects entered, they were arrested. The pair was charged with embezzling $3 million over two and a half years, a sizable amount of revenue for a $25 million-a-year firm.

Which of the following option denotes the correct steps of "Controlling process"?

Options:

Measurement of actual performance → Setting standards → Comparison of actual performance with standards → Analyzing deviations → Corrective action plan 

Setting standards → Measurement of actual performance → Comparison of actual performance with standards → Analyzing deviations → Corrective action plan 

Setting standards → Measurement of actual performance → Analyzing deviations → Comparison of actual performance with standards → Corrective action plan 

None of the above

Correct Answer:

Setting standards → Measurement of actual performance → Comparison of actual performance with standards → Analyzing deviations → Corrective action plan 

Explanation:

Following is the correct "Controlling process":

Setting standards → Measurement of actual performance → Comparison of actual performance with standards → Analyzing deviations → Corrective action plan