CBSE Class 12 Business Studies HOTs Controlling Set A

Class 12 Business Studies - Controlling HOTs Higher Order Thinking Skills (HOTS) download and print



Q1. If you want to control everything you may end up controlling.

Ans. Management By Exception.

Q2. Define Management Audit.

Ans. Systematic appraisal of the overall performance of the management of an organization.

Q3. Why is controlling considered to be a backward looking?

Ans. Controlling involves evaluation of past activities to find out deviations from standards so it is a backward looking function.

Q4. Name two types of profitability ratios?

Ans . a) Gross Profit Ratio   b)Net Profit Ratio.

Q5. What do you call the sales volume at which there is no profit, No loss?

Ans. Break even Point (BEP).

Q6. Give 2 examples of Corrective Action.

Ans. a) Provide training  b) Revive standards.

Q7. Give two examples of responsibility centers.

Ans. Cost Centre, revenue center etc.

Q8. Marketing department comes under which type of responsibility center.

Ans. Revenue Centre.

Q9. Give the formula of Return on Investment.

Ans . Net Profit/ Total investment

Q10. What do you understand by key KRAs result areas?

Ans. The areas which are critical to the success of an organization.

Q11. Why planning is an empty exercise without controlling? (1)

Ans. Planning is an empty exercise without controlling because implementation of plans and monitoring of plan depend upon controlling.

Q12. Which two steps in the process of controlling are concerned with compelling events to conform to plan?

Ans  Comparison of actual performance with standards.  b)Taking corrective actions.

Q13.”Planning is looking ahead and controlling is looking back.” Comment. (3)

Q14. “An ideal control technique is the one that checks every bit of performance”. Comment. (3)

Q15. “Controlling requires a systematic process” Explain (6)

Q16. Taking corrective/remedial action is the last step in the process of one functions of one functions of management.

a) Name of Function.        b) Explain the other steps of the above mentioned function. (6)

Q17 “Planning with out controlling is meaningless and controlling is aimless without planning”. Discuss. (6)


“Planning and Controlling are interrelated.” Comment. (6)

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