Class 12 Business Studies Chapter 8 MCQ and Important Questions of Controlling updated for new academic session 2023-24 CBSE and State board. Students of Class 12 Business Studies can take help from the MCQ and Extra Questions for chapter 8 during the exams. Class 12 Business Studies Chapter 8 Solutions.

Class 12 Business Studies Chapter 8 MCQ


Controlling function of an organization is

[A]. Backward looking
[B]. Forward looking
[C]. Both [a] and [b]
[D]. None of the above

Controlling function of management cannot be performed without

[A]. Planning
[B]. Delegation
[C]. Suspension
[D]. Communication

An efficient control system has the following advantages

[A]. Judges accuracy of standards
[B]. Accomplishes organizational objectives
[C]. Boosts employee morale
[D]. All of the above

While of the following is not a feature of controlling?

[A]. Controlling is a continuous process.
[B]. Controlling is goal oriented.
[C]. Controlling is a negative process
[D]. Controlling is backward looking

What is Controlling?

Controlling means ensuring that activities in an organization are performed as per the plans. It ensures that an organisation’s resources are being used effectively and efficiently for the achievement of suitable goals. It can be defined as comparison of actual performance with the planned performance.


Controlling is performed at

[A]. Top level
[B]. Middle level
[C]. Lower level
[D]. All levels

In controlling actual performance is compared with

[A]. Average performance
[B]. Standard performance
[C]. Performance of other companies
[D]. Performance of co-workers

An effort to control everything may end up at controlling nothing. This statement is

[A]. True
[B]. False
[C]. Partially true
[D]. Never true

The statement at point number 7 above suggests

[A]. Critical point control
[B]. Management by exception
[C]. Dictatorship
[D]. Laissez- faire

Features of Controlling

    1. Controlling is a goal oriented function
    2. Controlling is an all pervasive function
    3. Controlling is a continuous function
    4. Controlling is both a backward looking as well as forward looking function
    5. Controlling is a dynamic process
    6. Controlling is a positive process

Which function is the end of management cycle.

[A]. Planning
[B]. Controlling
[C]. Directing
[D]. None of the above

Controlling is preceded by ………. function and succeeded by ……….. function.

[A]. Planning , directing
[B]. Planning, supervision
[C]. Planning, follow up
[D]. Planning, planning

Controlling is a …… activity.

[A]. One time
[B]. Full- time
[C]. Continuous
[D]. None of the Above

Controlling is like post- mortem of events. This statement is often said because

[A]. We have to look into the past to find deviations
[B]. We have to think of the future
[C]. Both [a] and [b]
[D]. Controlling is related to planning

Importance of Controlling

    • 1. Controlling helps in achieving organizational goals
    • 2. For Evaluating/Judging accuracy of standards
    • 3. Making efficient use of resources
    • 4. Improves employee’s motivation
    • 5. Facilitating Coordination in action
    • 6. Ensuring order and discipline

Once controlling is done, managers can sit back and need not supervise the workers.

[A]. True
[B]. False
[C]. Partially true
[D]. None of the above

How many steps are there in the process of controlling

[A]. Two
[B]. Three
[C]. Four
[D]. Five

Deviations could be rectified by

[A]. Lowering the standards, if required
[B]. Educating the workers
[C]. Providing training to workers
[D]. All of the Above

If systems are properly developed, controlling could become a one time function.

[A]. True
[B]. False
[C]. Partially true
[D]. True subject to certain conditions
Limitations of Controlling
    1. Little control on external factors
    2. Resistance from employees
    3. Costly affair
    4. Difficulty in setting quantitative standards

The responsibility of controlling lies with which level?

[A]. Top Level
[B]. Middle Level
[C]. Lower level
[D]. All levels

The classification of deviations into major and minor varies with the type of organization and the kind of deviation.

[A]. True
[B]. False
[C]. Partially true
[D]. True subject to certain conditions

Which of the following is not a step of controlling

[A]. Setting standards
[B]. Delegating authority
[C]. Finding deviation
[D]. Fixing responsibility

Controlling function is the most important function of management.

[A]. True
[B]. Partially True
[C]. False
[D]. True subject to certain conditions
Relationship between Planning and Controlling

Planning and controlling are interrelated and infact reinforce each other in the following manner:

    • Planning is pre-requisite for controlling.
    • Planning is meaningless without controlling.
    • Effectiveness of planning can be measured with the help of controlling.
    • Planning and controlling both are forward looking.
    • Planning and controlling are both looking back.

What are some important precautions to be undertaken before attempting MCQs?

The common mistake committed by most important is to jump to a conclusion before verifying all the options. Therefore all options should be read carefully before writing the answer.

Can a question be asked involving 2 topics?

Yes, for example the topics planning and controlling are inter-related. Similarly the principles of Fayol and some of the principles of organising (chapter 6 class 12th business studies) are similar in nature. Therefore, a question can be asked relating to both the topics.

Is there negative marking in MCQs?

So far as CBSE examination for class 10th and 12th are concerned, there was no negative marking. However, in certain examinations like CPT (Common Proficiency Test) conducted by the Institute of CA (Now CA foundation) exam, there used to be a deduction of 25 percent marks for wrong answer to a particular question.