NCERT Solutions for Class 12 Business Studies Principles and Functions of Management Chapter 8

Controlling Class 12

Chapter 8 Controlling Exercise Solutions

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Multiple choice questions : Solutions of Questions on Page Number : 233

Q1 :  

An efficient control system helps in

(a) Accomplishes organisational objectives

(b) Boosts employee morale

(c) Judges accuracy of standards

(d) All of the above


Answer :

An efficient controlling system helps in achieving all the aforementioned objectives. Controlling refers to the process of assessing the progress of the current tasks and activities and setting the work standards to achieve the goals of the organisation. An efficient control system helps in keeping a close watch on the progress of the work towards the accomplishment of the organisational goals and takes the required corrective actions. It helps in tracking the changes taking place in the organisation and the business environment and thereby, helps in judging the accuracy of the standards set. Along with this, controlling boosts employee morale by telling them in advance about what is expected from them and motivating them to work according to the set policies.

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Q2 :  

Controlling function of an organisation is

(a) Forward looking

(b) Backward looking

(c) Forward as well as backward looking

(d) None of the above


Answer :

Controlling as an essential part of management is forward as well as backward looking. It is a backward looking function in the sense that it assesses the work done and analyses deviations from the set standards. Based on these deviations it attempts to take the required corrective measures. Thus, it guides the future course of action and aims at improving the future performance. In this sense, it is also a forward looking function. Hence, we can say that controlling is forward as well as backward looking function. 

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Q3 :  

Management audit is a technique to keep a check on the performance of

(a) Company

(b) Management of the company

(c) Shareholders

(d) Customers


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Q4 :  

Budgetary control requires the preparation of

(a) Training schedule

(b) Budgets

(c) Network diagram

(d) Responsibility centres


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Q5 :  

Which of the following is not applicable to responsibility accounting?

(a) Investment centre

(b) Accounting centre

(c) Profit centre

(d) Cost centre


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Short answerslong answers : Solutions of Questions on Page Number : 234

Q1 :  

Explain the meaning of controlling.


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Q2 :  

Explain the various steps involved in the process of control.


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Q3 :  

'Planning is looking ahead and controlling is looking back'. Comment.


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Q4 :  

Explain the techniques of managerial control.


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Q5 :  

'An effort to control everything may end up in controlling nothing'. Explain.


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Q6 :  

Explain the importance of controlling in an organisation. What are the problems faced by the organisation in implementing an effective control system?


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Q7 :  

Write a short note on budgetary control as a technique of managerial control.


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Q8 :  

Discuss the relationship between planning and controlling.


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Q9 :  

Explain how management audit serves as an effective technique of controlling.


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Principles and Functions of Management - Business Studies : CBSE NCERT Exercise Solutions for Class 12th for Controlling will be available online in PDF book form soon. The solutions are absolutely Free. Soon you will be able to download the solutions.

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