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Home/Practice questions/Business Studies
Business StudiesControlling

Which one of the following is NOT a limitation of controlling?

Which one of the following is NOT a limitation of controlling?

Answer & explanation+

Correct answer: option 3

The correct answer is Option (3) → Controlling leads to rigidity

Option (1) Controlling is a costly affair — A limitation of controlling. Control needs a lot of expenditure, time and effort. A small firm may not be able to afford it.

Option (2) Controlling faces resistance from employees — A limitation of controlling. Employees see control as a restriction on their freedom, for example a strict watch through CCTVs.

Option (3) Controlling leads to rigidity — Not a limitation of controlling. Rigidity is a limitation of planning. Once a plan is fixed for a time frame, managers may not be able to change it.

Option (4) Controlling offers little control over external factors — A limitation of controlling. A firm cannot control government policies, technological changes or competition.

NCERT (2026-27 Edition): “Limitations of Controlling … (ii) Little control on external factors: Generally an enterprise cannot control external factors such as government policies, technological changes, competition etc.
(iii) Resistance from employees: Control is often resisted by employees. They see it as a restriction on their freedom. For instance, employees might object when they are kept under a strict watch with the help of Closed Circuit Televisions (CCTVs).
(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. …”

“(i) Planning leads to rigidity: In an organisation, a well-defined plan is drawn up with specific goals to be achieved within a specific time frame. These plans then decide the future course of action and managers may not be in a position to change it. This kind of rigidity in plans may create difficulty. Managers need to be given some flexibility to be able to cope with the changed circumstances. Following a pre-decided plan, when circumstances have changed, may not turn out to be in the organisations interest.”

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