CBSE Class 12th Business Studies Question Paper - TS8 (5 Question Papers)

Free Business Studies - Class 12th (CBSE) - TS8 (5 Question Papers Included) - Controlling

Controlling is an important function of management. This seems easy! Correct?

Now, let's revise each concept of controlling with our five question papers to score well in your CBSE class 12th board exams.

Here are the quick details:

• Class: XII
• Subject: BUSINESS STUDIES
• Time: 45 minutes
• Maximum Marks: 20
• Chapter Name: Controlling
• Marking Scheme: One, three, four, and six marks

Below are the links to the tests:

• Test 1
• Test 2
• Test 3
• Test 4
• Test 5

Test 1

• Time: 45 minutes
• Maximum Marks: 20

Q1. Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below: (1 mark)

• ASSERTION (A): Controlling can prevent deviations.
• REASON (R): Controlling helps in minimising deviations by taking actions and decisions that reduce their recurrence.

1. Both Assertion (A) and Reason (R) are true, and Reason is the correct explanation of Assertion.
2. Both Assertion(A) and Reason (R) are true, and Reason is not the correct explanation of Assertion.
3. Assertion (A) is true, Reason (R) is false.
4. Assertion (A) is false, Reason(R) is true.

Q2. 

• Statement I: Planning means ensuring that activities in an organisation are performed as per the plans.
• Statement II: Managerial Control implies the measurement of accomplishment against the standard and the correction of deviations to assure attainment of objectives according to plans.

1. Statement I is correct and Statement II is not correct.
2. Statement II is correct and Statement I is not correct.
3. Both Statements I and II are correct.
4. Both Statements I and II are not correct. (1 mark)

Q3. Sojo, a company providing financial services to its clients, is keeping a close check on the employees' activities by using biometric and retina scanning as modes of accessing the office premises, in order to ensure greater security of information in the organisation. 

Choose the correct point of significance of controlling highlighted above: (1 mark)

1. Controlling helps in the achievement of organisational goals
2. Controlling helps in ensuring order and discipline
3. Controlling helps in improving employee motivation
4. Controlling enables optimum utilisation of resources

Q4. An important project at RamKaran consultants is running behind schedule by a month. This has upset their clients and might affect the reputation of the company in the long run. No managerial action like assigning more workers, equipment or giving overtime, has been able to solve the problem. What managerial action may now be taken by the company to avoid such a situation from arising in the future? (1 mark)

1. Revise the schedule
2. Assigning additional workers and equipment to the project
3. Get permission for further overtime work
4. Both B & C

Q5. Mr. Sparsh Dhamija had been heading the production department of Writewell Products Ltd., a firm manufacturing stationery items. The firm secured an export order that had to be completed on a priority basis, and production targets were defined for all the employees. One of the workers, Mr Bhanu Prasad, fell short of his daily production target by 10 units for two consecutive days. Mr. Sparsh approached Ms Vasundhara, the CEO of the Company, to file a complaint against Mr Bhanu Prasad and requested her to terminate his services. Explain the principle of management control that Ms Vasundhara should consider while making her decision. (3 marks)

Q6. Explain Critical Point Control concept.  (3 marks)

Q7. Tullu Ltd. set up a manufacturing unit at Bhiwadi in Himachal Pradesh to manufacture electric geysers and supply them to dealers all over the country. Their production target was 500 geysers per week. It was decided by the management that variation in production up to 10 units would be acceptable. At the end of the first week, the production was 450 geysers. The next week, production increased to 470 geysers. A week later, production was 460 geysers. On investigation, it was found out that the fluctuation in production was due to an irregular supply of electricity. 

1. The above para discusses some of the steps of one of the functions of management. Explain the steps. 
2. Also, state the step(s) not discussed in the above para. (4 marks)

Q8. Anant Lal is a cloth merchant in Karol Bagh. His grandsons are requesting him to let them diversify the business into bridal wear. Anant Lal has agreed, but on the condition that they will follow the function of management he has always followed, which helps an organisation to keep a track of the progress of activities and ensures that the activities conform to the standards set in advance so that the organisational goals are achieved. Name the function of management which Anant Lal is asking his grandsons to follow. List any five reasons why it is considered an indispensable function of management. (6 marks)

The End

Test 2

• Time: 45 minutes
• Maximum Marks: 20

Q1. Aditya owns a factory manufacturing motor spare parts. He planned a quarterly production of 500 units. In the first quarter, the workers achieved the target, but from the second quarter, the production dropped to 400-450 units. Aditya tried his best to motivate his workers, announced overtime for extra hours of work and provided them with all facilities that were required for better working conditions, but the workers could not achieve the target. He did not know which factor was demanding more managerial attention. From the following, identify which function of management will help Aditya in finding out the factors responsible for the non-achievement of targets: (1 Mark)

1. Planning
2. Organising
3. Directing
4. Controlling

Q2. "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 to more urgently as compared to deviations in certain insignificant areas." Identify the principle/technique of managerial control highlighted above. (1 Mark)

1. Management by Exception
2. Critical Point Control
3. Both (a) and (b)
4. Budgetary control

Q3. 

• Assertion (A): Planning and controlling are interdependent and interlinked. 
• Reason (R): Planning provides the goals and objectives that the controlling function uses to measure performance. (1 Mark)

1. Both A and R are true, but R is not the correct explanation of A.
2. Both A and R are true, and R is the correct explanation of A.
3. A is true, but R is false.
4. A is false, but R is true.

Q4. 

• Statement I: Controlling ensures that activities in an organization are performed as per the plans.
• Statement II: The controlling function of a manager is a pervasive function. Choose the correct option from the options given below: (1 Mark)

1. Statement I is true, and Statement II is false.
2. Statement II is true and Statement I is false.
3. Both Statements are true.
4. Both Statements are false.

Q5. Explain the concept of 'Controlling'. Is controlling the last function of management? Explain. (3 marks)

Q6. One of the important steps of a function of management has been illustrated in the picture. Identify and explain the step briefly. (3 marks)

Q7. Each Employee of 'Bhoomika Ltd.' should manufacture 10 tables per day as per the terms of employment. All the employees met the said target except a few who manufactured between 4 - 6 tables per day. On investigation, it was found that these employees wasted time in gossiping and sitting idle. The management took a decision to install Closed Circuit Television (CCTV's) in the factory for monitoring the activities of the employees. Identify by quoting lines the steps in the controlling function discussed above and explain these steps. (4 marks)

Q8. Vikas was the Chief Operating Officer of 'Yalet Ltd.', a company providing advanced software solutions to the Indian Defence Services. They had been carrying on business successfully for the last twelve years and earning enough profits. But for the last one year, they have realised that though the business is getting big orders which are being fulfilled in time, even then the revenues have kept on decreasing. Vikas was not able to find out where the problem was. He started keeping a close check on the progress of activities as he could sense that something was wrong. He wanted to take some action before any major damage could be done to the business. Vikas appointed a cyber security expert who monitored the company's processes and found out that the computer operator was deleting the entries from the computers and pocketing the revenues. He was caught and handed over to the police. This created an atmosphere of order and discipline in the organisation and helped in minimising dishonest behaviour on the part of the employees. Explain the importance of the function of management highlighted in the above paragraph by giving any six points. (6 marks)

The End

Test 3

• Time: 45 minutes
• Maximum Marks: 20

Q1. As the Production Manager of a large company, which method will be followed for Mr Gopesh to gauge the performance of his department? (1 mark)

1. Sample checking of certain random pieces for quality
2. Checking each piece for quality specifications
3. Calculation of certain financial ratios
4. Checking an increase in market share

Q2.

• Assertion: Controlling helps in making efficient use of resources. (1 mark)
• Reason: An efficient control system keeps a check on the changes taking place in the organisation and in the environment and helps to review and revise the standards in light of changes.

1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
2. Both Assertion (A) and Reason (R) are true, and Reason (R) is not the correct explanation of Assertion (A).
3. Assertion (A) is true, but Reason (R) is False.
4. Assertion (A) is False, but Reason (R) is True.

Q3. _______ checks whether decisions have been translated into a desired action. (1 mark)

1. Directing
2. Controlling
3. Organising
4. Coordination

Q4. When the deviations go beyond the acceptable range, especially in the importance area, it demands immediate managerial attention so that deviations do not occur again and standards are accomplished. (1 mark)

1. Management by exception
2. Critical point control
3. Both (a) and (b)
4. Analysing deviations

Q5. "An attempt to control everything results in controlling nothing." Explain with an example. (3 marks)

Q6. "Planning is looking ahead while controlling is looking back." Comment. (3 marks)

Q7. Airtech Ltd. is manufacturing mobile phones both for the domestic Indian market and for export.

It had enjoyed a substantial market share and also had a loyal customer following. But lately it has been experiencing problems because its targets have not been met with regard to sales and customer satisfaction.

Also, the mobile market in India has grown tremendously, and new players have come with better technology and pricing.

This is causing problems for the company. It is planning to revamp its controlling system and take other steps necessary to rectify the problems it is facing. (4 marks)

1. Suggest any two benefits the company will derive from a good control system.
2. Give the steps that the company should follow to remove the problems it is facing. 

Q8. A company was manufacturing 'LED bulbs' which were in great demand. It was found that the target of producing 300 bulbs a day was not met by the employees.

On analysis, it was found that the workers were not at fault. Due to electricity failure and a shortage of workers, the company was not able to achieve the set targets, and alternative arrangements were needed.

To meet the increased demand, the company assessed that approximately 88 additional workers were required, out of which 8 would work as heads of different departments, and 10 would work as subordinates under each head.

The required qualifications and job specifications were also enlisted. It was also decided that necessary relaxation should be given to encourage women, persons from backward and rural areas and persons with special abilities to assume responsible positions in the organisation.

All efforts were made to match the ability of the applicants with the nature of the work.

1. Identify the functions of management discussed above.
2. State the two steps in the process of each function discussed in the above paragraph. (6 marks)

The End

Test 4

• Time: 45 minutes
• Maximum Marks: 20

Q1. 

• Assertion (A): Controlling is a goal-oriented function.
• Reason (R): Controlling ensures that an organisation's resources are being used effectively and efficiently for the achievement of predetermined goals.

1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). 
2. (b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
3. Assertion (A) is true, and Reason (R) is false.
4. Assertion (A) is false, and Reason (R) is true. (1 mark)

Q2. 

• Statement I: Planning based on facts makes controlling easier and effective. 
• Statement II: Controlling improves future planning by providing information derived from past experience. (1 mark)

1. Statement I is correct, and Statement II is not correct.
2. Statement II is correct, and Statement I is not correct.
3. Both Statements I and II are correct.
4. Both Statements I and II are not correct.

Q3. Radha started a home-cooked food delivery Dabba service. Her mother, who is a great cook, decided to help her. 

They relied on friends and family for orders and then on word of mouth. 

As a step in the process of ensuring that activities are performed as per her plan of supplying healthy, good quality, reasonable food and earning profit, she decided to keep both qualitative and quantitative benchmarks towards which she would strive to work. 

A function of management is being discussed above. An important characteristic of this function of management is: (1 mark)

1. It is the first function of management
2. It is the last function of management
3. It is both forward-looking and backwards-looking
4. It is required only in business organisations

Q4. Ajit Nene, the owner of a newly established food delivery outlet, 'Food and Snacks' in Maharashtra, instructed the Human Resource Manager of the firm to establish qualitative benchmarks of performance, as he wanted to assess the motivation, skill and satisfaction level of his employees.

The sales manager was asked to set quantitative benchmarks of performance in terms of volume of sales made on a daily basis.

Identify the step performed by Ajit Nene in the process of controlling. (1 mark)

1. Measurement of performance
2. Analysing deviations
3. Setting performance standards
4. Taking corrective action

Q5. "A control technique should check each and every activity in an organisation." Do you agree? Give reasons. (3 marks)

Q6. A Departure Control System (DCS) automates processing an airline's airport management operations, which includes managing the information required for airport check-in, printing boarding passes, baggage acceptance, boarding load control and aircraft checks.

Today, almost 98% of DCS manage e-ticket using interface from a number of devices, including check-in kiosks, online check-in, mobile boarding pass and baggage handling.

DCS are able to identify and capture updated reservations from an airline computer reservation system for passengers called the passenger name record (PNR). A DCS is used to update reservations typically as checked-in, boarded, and flown or another status.

Additionally and increasingly, a DCS or some city fare sectors may also interface with immigration control for visa, immigration and passenger no-fly watch list. Identify and state the function of management highlighted above.

Also, explain how this function is a pervasive function. (3 marks)

Q7. Describe briefly the relationship between controlling and planning. (4 marks)

Q8. Rudrakshi Ltd. is engaged in manufacturing high-end luxury pens. 

The target production is 700 units daily. The company had been successfully attaining this target until three months before. 

Over the last few months, it has been observed that daily productions vary between 600-650 units. (6 marks)

1. Identify the function of management, which has been highlighted in the above context.
2. Discuss the steps involved in the process of the function identified above. 
   

The End

Test 5

• Time: 45 minutes
• Maximum Marks: 20

Q.1

• Assertion (A): The controlling function of a manager is a pervasive function. (1 mark)
• Reason (R): Controlling is as much required in an educational institution, military, hospital, and a club as in any business organisation.

1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
3. Assertion (A) is true, and Reason (R) is false.
4. Assertion (A) is false, and Reason (R) is true.

Q.2

• Statement I: At the time of setting standards, a manager should try to set standards in precise quantitative terms, as this would make their comparison with actual performance much easier.
• Statement II: Standards set in terms of cost to be incurred, revenue to be earned, product units to be produced and sold, and time to be spent in performing a task, all represent qualitative standards.

1. Statement I is correct, and Statement II is not correct.
2. Statement II is correct and Statement I is not correct.
3. Both Statements I and II are correct.
4. Both Statements I and II are not correct.

Q.3 Choose the incorrect statement about the controlling function of management. (1 mark)

1. Controlling is both backward and forward looking
2. Controlling is prescriptive, whereas planning is evaluative
3. Controlling presupposes the existence of certain standards
4. Controlling is a pervasive function of management

Q.4 Keya Ltd. is a large organisation manufacturing a popular brand of desi ghee and supplying it to various states of India. 

They manufacture 10,000 litres of desi ghee every day and pack it in cartons of 250 ml, 500 ml and 1 litre sizes. 

The production manager ensures that one out of every ten cartons of each size is checked for quality control every day.

The step of the controlling process discussed in the above paragraph is: (1 mark)

1. Setting performance standards
2. Measurement of actual performance
3. Comparison of actual performance with standards
4. Analysing deviations

Q.5 Paul, the Manager of a manufacturing unit in Noida, employed various strategies to address the production shortfall of 850 balls out of the 1,000-ball target.

Furthermore, what crucial initial steps might he have overlooked during the process of analysing deviations and implementing corrective measures? (3 marks)

Q.6 How can a regional manager of a retail chain enhance operational efficiency and maximise profits by analysing deviations in sales performance among different stores?

Some outlets consistently exceed sales targets, while others struggle to meet their goals.

To address these disparities, the regional manager aims to implement two management techniques for analysing deviations.

Explore these two techniques in detail. (3 marks)

Q.7 Priya is a regional manager of XYZ Ltd. She is a hardworking employee and is trying to reduce the wastage of resources in her company.

She has set standards for the performance of different activities and is ensuring that targets are met according to these standards with minimal wastage of resources.

She has set up CCTV cameras, which help her to keep a close check on the activities of the subordinates and know how the employees are performing.

She also rewards the employees with a bonus when these standards are met.

She is trying her best to ensure a good performance of her team this year through the application of an important function of management.

Explain any four benefits of the function of management highlighted above. (4 marks)

Q.8 Each employee of 'Bhoomika Ltd.' should manufacture 10 tables per day as per the terms of employment.

All the employees met the said target except a few who manufactured between 4–6 tables per day.

The management has made a decision to install Closed Circuit Television (CCTVs) in the factory for monitoring the activities of the employees. (6 marks)

1. Identify the managerial function discussed above.
2. Explain the steps in the process of the function identified in (a) above.

The End

Go through the entire revision notes of CBSE Chapter 8: Controlling by clicking here.