Which of the following statements about the limitation ‘difficulty in…

The correct answer is Option (1) → Sales volume and labour turnover are areas where this problem might arise.

Option (1) Sales volume and labour turnover are areas where this problem might arise. — False. Sales volume and labour turnover can be counted, so standards for them can be set in numbers. The problem arises in areas such as employee morale, job satisfaction and human behaviour.

Option (2) The control system loses some of its effectiveness when standards cannot be defined in quantitative terms. — True. When a standard cannot be put in numbers, the control system loses some of its effectiveness.

Option (3) Measurement of performance and its comparison with standards become a difficult task. — True. Without a standard in numbers, measuring performance and comparing it with the standard becomes difficult.

Option (4) Employee morale, job satisfaction and human behaviour are areas where this problem might arise. — True. Morale, job satisfaction and behaviour are feelings and actions of people. They are hard to measure in numbers.