Consider the following statements about factors outside an enterprise:
(A) Little control on external factors is the limitation under which an enterprise generally cannot control government policies, technological changes and competition.
(B) Environmental factors beyond the control of the organisation are one of the causes of deviations.
(C) Little control on external factors is the limitation that applies especially to small enterprises.
(D) Due to changes in the internal and external business environment, standards may need some modification to be realistic.
(E) Making efficient use of resources is the importance of controlling that keeps a careful check on the changes taking place in the environment.
Which of the statements given above are correct?
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (B) and (D) only
(A) Little control on external factors is the limitation under which an enterprise generally cannot control government policies, technological changes and competition. — Correct. Government policies, technological changes and competition are external factors that an enterprise generally cannot control.
(B) Environmental factors beyond the control of the organisation are one of the causes of deviations. — Correct. When deviations are analysed for their causes, the causes listed include unrealistic standards, defective process and environmental factors beyond the control of the organisation.
(C) Little control on external factors is the limitation that applies especially to small enterprises. — Incorrect. The limitation that weighs on small enterprises is costly affair, since they cannot afford an expensive control system. Little control on external factors applies to every enterprise.
(D) Due to changes in the internal and external business environment, standards may need some modification to be realistic. — Correct. The business environment keeps changing, so standards should be flexible enough to be modified and stay realistic.
(E) Making efficient use of resources is the importance of controlling that keeps a careful check on the changes taking place in the environment. — Incorrect. Keeping a careful check on changes in the environment is part of judging accuracy of standards. Making efficient use of resources is about reducing wastage.
NCERT (2026-27 Edition): “Limitations of Controlling … “Step 1: Setting Performance Standards: … It is important that standards should be flexible enough to be modified whenever required. Due to changes taking place in the internal and external business environment, standards may need some modification to be realistic in the changed business environment.” “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: “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. Also, deviations in key areas of business need to be attended more urgently as compared to deviations in certain insignificant areas. …”
|
