"A small enterprise cannot afford to install an expensive control system".
This statement refers to.................
Answer & explanation
Correct answer: option 4
The correct answer is option (4)- Costly Affairs.
"A small enterprise cannot afford to install an expensive control system" refers to Costly Affairs.
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. Managers must ensure that the costs of installing and operating a control system should not exceed the benefits derived from it.
OTHER OPTIONS
- Little control on external factors: Generally an enterprise cannot control external factors such as government policies, technological changes, competition etc.
- 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.
- Inefficient use of resources: It refers to situations where resources are not being utilized in an optimal way.