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Home/Practice questions/Business Studies
Business StudiesControlling

An efficient control system helps in:

An efficient control system helps in:

Answer & explanation+

Correct answer: option 4

The correct answer is Option (4) → Both (1) and (2)

Option (1) Ensuring order and discipline — Correct. Controlling creates an atmosphere of order and discipline. A close check on employees’ activities cuts down dishonest behaviour.

Option (2) Judging accuracy of standards — Correct. A good control system checks whether the standards set are accurate and objective. It also helps to revise them as the organisation and its environment change.

Option (3) Reducing the risks of uncertainty — Incorrect. This is an importance of planning. Planning looks ahead, foresees future events and prepares for them, so it reduces uncertainty. Controlling checks performance against standards that are already set.

NCERT (2026-27 Edition): “Importance of Controlling Control is an indispensable function of management. Without control the best of plans can go awry. A good control system helps an organisation in the following ways:
(i) 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.
(ii) Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate and objective. An efficient control system keeps a careful check on the changes taking place in the organisation and in the environment and helps to review and revise the standards in light of such changes.”

“(v) Ensuring order and discipline: Controlling creates an atmosphere of order and discipline in the organisation. It helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities. …”

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