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Home/Practice questions/Business Studies
Business StudiesControlling

Which of the following statements about the need for controlling are…

Which of the following statements about the need for controlling are correct?

(A) Controlling is required in a business organisation.
(B) Controlling is required in a hospital.
(C) Controlling is as much required in a club as in a business.
(D) A small enterprise can justify the cost of an expensive control system.

Choose the correct answer from the options given below:

Answer & explanation+

Correct answer: option 1

The correct answer is Option (1) → (A), (B) and (C) only

(A) Controlling is required in a business organisation. — Correct. Every business needs control to make sure its activities go as per the plans.

(B) Controlling is required in a hospital. — Correct. Controlling is a pervasive function. It is needed in hospitals, schools and the military too.

(C) Controlling is as much required in a club as in a business. — Correct. A club also has goals and activities to keep on track, so it needs control as much as a business does.

(D) A small enterprise can justify the cost of an expensive control system. — Incorrect. Control is a costly affair. A small enterprise cannot afford an expensive control system and cannot justify the expenses involved.

NCERT (2026-27 Edition): “Meaning of Controlling … Controlling function of a manager is a pervasive function. It is a primary function of every manager. Managers at all levels of management— top, middle and lower-need to perform controlling functions to keep a control over activities in their areas. Moreover, controlling is as much required in an educational institution, military, hospital, and a club as in any business organisation. …”

“(iv) Costly affair: Control is a costly affair as it involves a lot of expenditure, time and effort. A small enterprise cannot afford to install an expensive control system. It cannot justify the expenses involved. …”

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