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Home/Practice questions/Business Studies
Business StudiesControlling

Match List I with List II. List I (Controlling Process) List II (Rela…

Match List I with List II.

List I

(Controlling Process)

List II

(Related Concept)

A. Analysis deviations I. It demands managerial attention
B. Taking corrective action II. It becomes easy when quantitative terms are used
C. Comparison of standard with actual III. To determine acceptable range of deviations
D. Setting performance standards IV. Serves as benchmarks towards which an
organization strives to work

Choose the correct answer from the options given below :

Answer & explanation+

Correct answer: option 2

The correct answer is Option (2) → A-III, B-I, C-II, D-IV

A. Analysis deviations — This matches III. To determine acceptable range of deviations. In this step it is important to determine the acceptable range of deviations.

B. Taking corrective action — This matches I. It demands managerial attention. When deviations go beyond the acceptable range, it demands immediate managerial attention.

C. Comparison of standard with actual — This matches II. It becomes easy when quantitative terms are used. Comparison becomes easier when standards are set in quantitative terms.

D. Setting performance standards — This matches IV. Serves as benchmarks towards which an organization strives to work. Standards serve as benchmarks.

NCERT (2026-27 Edition): “Step 4: Analysing Deviations: Some deviation in performance can be expected in all activities. It is, therefore, important to determine the acceptable range of deviations. …”

“Step 5: Taking Corrective Action: The final step in the controlling process is taking corrective action. No corrective action is required when the deviations are within acceptable limits. However, when the deviations go beyond the acceptable range, especially in the important areas, it demands immediate managerial attention so that deviations do not occur again and standards are accomplished.”

“Step 3: Comparing Actual Performance with Standards: … This step involves comparison of actual performance with the standard. Such comparison will reveal the deviation between actual and desired results. Comparison becomes easier when standards are set in quantitative terms. For instance, performance of a worker in terms of units produced in a week can be easily measured against the standard output for the week.”

“Step 1: Setting Performance Standards: … The first step in the controlling process is setting up of performance standards. Standards are the criteria against which actual performance would be measured. Thus, standards serve as benchmarks towards which an organisation strives to work.”

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