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Home/Practice questions/Business Studies
Business StudiesControlling

Which of the following is NOT an importance of controlling?

Which of the following is NOT an importance of controlling?

Answer & explanation+

Correct answer: option 2

The correct answer is Option (2) → It facilitates more control on external factors

  • Option (1) It facilitates the accomplishment of organizational goals — An importance of controlling (Incorrect). Controlling measures progress towards the goals and points out the deviations. So it keeps the organisation on the right track.

  • Option (2) It facilitates more control on external factors — Not an importance of controlling (Correct). A limitation of controlling is little control on external factors. A firm cannot control things outside it, such as government policies, changes in technology and competition.

  • Option (3) It facilitates coordination — An importance of controlling (Incorrect). Each department works to standards that fit with one another. So all efforts move towards the same goals.

  • Option (4) It facilitates effective and efficient use of resources — An importance of controlling (Incorrect). Control reduces waste of resources, because every activity follows set standards.

NCERT (2026-27 Edition): “Accomplishing organisational goals: The controlling function measures progress towards the organisational goals and brings to light the deviations, if any, and indicates corrective action. It, thus, guides the organisation and keeps it on the right track so that organisational goals might be achieved.”

“Making efficient use of resources: By exercising control, a manager seeks to reduce wastage and spoilage of resources. Each activity is performed in accordance with predetermined standards and norms. This ensures that resources are used in the most effective and efficient manner.”

“Facilitating coordination in action: Controlling provides direction to all activities and efforts for achieving organisational goals. Each department and employee is governed by predetermined standards which are well coordinated with one another. This ensures that overall organisational objectives are accomplished.”

“Little control on external factors: Generally an enterprise cannot control external factors such as government policies, technological changes, competition etc.”

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