CBSE Class 12 Business Studies Controlling Worksheet Set 01

Class 12 Business Studies Practice Set: Chapter 08 Controlling

Review targeted practice sets for Class 12 Business Studies Chapter 08 Controlling. Built according to official educational guidelines for the 2026-27 academic year, these downloadable worksheets support daily revision and core concept reinforcement.

Download Chapter 08 Controlling Worksheet PDF

View or download the dedicated Chapter 08 Controlling practice resource below. Engaging with these objective and subjective questions daily ensures continuous academic progress and mastery of the 2026-27 curriculum.

CONTROLLING
 
1) Define Controlling.
Controlling means ensuring that activities in an organisation are performed as per the plans.
 
2) State or list or enumerate the features or characteristics or nature of controlling.
a) Controlling is a goal-oriented function: Controlling also ensures that an organisation’s resources are being used effectively and efficiently for the achievement of predetermined goals.
b) Controlling function of a manager is a pervasive function:
It is a primary function of every manager. Managers at all levels of management- top, middle and lower-need to perform controlling functions to keep a control over activities in their areas.
c) It is a function that brings back the management cycle back to the planning function. The controlling function finds out how far actual performance deviates from standards, analyses the causes of such deviations and attempts to take corrective actions based on the same.
 
3) Controlling only completes one cycle of management process and improves planning in the next cycle. Justify.
• The controlling function finds out how far actual performance deviates from standards, analyses the causes of such deviations and attempts to take corrective actions based on the same.
• This process helps in formulation of future plans in the light of the problems that were identified and, thus, helps in better planning in the future periods.
Thus, controlling only completes one cycle of management process and improves planning in the next cycle.
 
4) Explain the Importance or significance of Controlling.
Or Control is an indispensable function of management. Explain. Or
How does a good control system helps an organization.
 
a) Accomplishing organisational goals:
• controlling function measures progress towards the organisational goals and brings to light the deviations, if any, and indicates corrective action.
• assure attainment of objectives according to plans.
 
b) Judging accuracy of standards:
• An efficient control system keeps a careful check on the changes taking place in the organisation and in the environment.
• Helps to review and revise the standards in light of such changes.
 
c) Making efficient use of resources:
• By exercising control, a manager seeks to reduce wastage and spoilage of resources.
• Each activity is performed as per the standards and norms.
• This ensures that resources are used in the most effective and efficient manner.
 
d) Improving employee motivation:
• A good control system ensures that employees know well in advance what they are expected to do and what are the standards.
• It motivates them and helps them to give better performance.
 
e) Ensuring order and discipline:
• Controlling creates an atmosphere of order and discipline in the organisation.
• It helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities.
 
5) Explain the Limitations of Controlling
 
a) Difficulty in setting quantitative standards:
• Control system loses its effectiveness when standards cannot be measured in quantitative terms.
• This makes measurement of performance and their comparison with standards a difficult task.
 
b) Little control on external factors:
• Generally an enterprise cannot control external factors such as government policies, technological changes, competition etc.
 
c) 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).
 
d) 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.
 
6) Explain the Relationship between Planning and Controlling. Or planning without controlling is meaningless. Similarly, controlling is blind without planning.
• Planning and controlling are inseparable twins of management.
• A system of control consists of certain standards. These standards serve as the basis of controlling and are provided by planning.
• Once a plan becomes operational, controlling is necessary to monitor the progress, measure it, discover deviations and initiate corrective measures to ensure that events conform to plans.
• Thus, planning without controlling is meaningless. Similarly, controlling is blind without
planning.
 
7) Planning is thus, prescriptive whereas, controlling is evaluative. Explain
• Planning is basically an intellectual process involving thinking, articulation and analysis to discover and prescribe an appropriate course of action for achieving objectives.
• Controlling, on the other hand, checks whether decisions have been translated into desired action.
 
8) Planning and controlling are both backward-looking as well as a forward-looking function. Explain.
• Planning is looking ahead while controlling is looking back. However, the statement is only partially correct.
• Plans are prepared for future and are based on forecasts about future conditions. Therefore, planning involves looking ahead and is called a forward-looking function.
• On the contrary, controlling is like a postmortem of past activities to find out deviations from the standards. In that sense, controlling is a backward-looking function.
•However, it should be understood that planning is guided by past experiences and the corrective action initiated by control function aims to improve future performance.
 
9) Explain the process of Controlling.
a) Step 1: Setting Performance Standards:
• The first step in the controlling process is setting up of performance standards.
• Standards serve as benchmarks towards which an organisation strives to work.
• Standards can be set in both quantitative as well as qualitative terms.
• Standards should be flexible enough to be modified whenever required.
 
b) Step 2: Measurement of Actual Performance:
• Once performance standards are set, the next step is measurement of actual performance.
• Performance should be measured in an objective and reliable manner.
• There are several techniques for measurement of performance.
• These include personal observation, sample checking, performance reports, etc.
 
c) Step 3: Comparing Actual Performance with Standards:
• This step involves comparison of actual performance with the standard.
• Such comparison will reveal the deviation between actual and desired results.
• Comparison becomes easier when standards are set in quantitative terms.
• For instance, performance of a worker in terms of units produced in a week can be easily measured against the standard output for the week.
 
d) Step 4: Analysing Deviations:
• 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 more urgently as compared to deviations in certain insignificant areas.
 
e) Step 5: Taking Corrective Action:
• The final step in the controlling process is taking corrective action.
• No corrective action is required when the deviations are within acceptable limits.
• However, when the deviations go beyond the acceptable range, especially in the important areas, it demands immediate managerial attention so that deviations do not occur again and standards are accomplished.
 
 
Match the columns
 
Standards to gauge performance Functional areas of business
(i) Labour relations, labour turnover, labour absenteeism, etc. (a) Production
(ii) Sales volume, sales expense, advertising expenditure, individual sales person’s performance, etc. (b) Marketing
(iii) Capital expenditure, inventories, flow of capital, liquidity, etc. (c) Human resource management
(iv) Quantity, quality, cost, individual job performance, etc. (d) Finance and accounting

Andwer : (i)-(c),(ii)-(b),(iii)-(d), (iv)-(a)

 

Answer in one word to one sentence

Question. Controlling is as much required in an educational institution, military, hospital, and a club as in any business organisation.
What feature of nature of controlling is highlighted above?
Andwer : Controlling is a pervasive function.

Question. Today almost every business organisation has computer monitoring as a part of their control system. Which point of importance of controlling function of management is highlighted above?
Andwer : Controlling helps in ensuring order and discipline in the organisation.

Question. Name the function of management which is concerned with monitoring organisational performance towards the attainment of organisational goals.
Andwer : Controlling

Question. Why is controlling called a continuous process?
Andwer : Controlling is a continuous process because it involves a constant review of actual performance for taking corrective action, if any.

Question. In case of assembling task, each part produced should be checked before assembling. Similarly, in a manufacturing plants levels of gas particles in the air could be continuously monitored for safety.
What step of controlling process and its aspect has been highlighted in the above examples?
Andwer : Measurement of actual performance wherever possible, measurement of work should be done during the performance.

Question. Standards are set in quantitative as well as in qualitative terms. Identify the type of standards when it is set in terms of ‘Cost to be incurred.
Andwer : Quantitative standards

Question. Which two steps in the process of controlling are concerned with compelling events to conform to the plan?
Andwer : (i) Comparison of actual performance with standards
(ii) Taking corrective action

Question. What is important while analysing deviations in controlling?
Andwer : While analysing deviations, it is important to determine the acceptable range of deviations/Key result areas.

Question. What should be the ‘focus point’ for a manager while controlling, as controlling at each and every step is not possible?
Andwer : Key Result Areas (KRAs)

Question. Standards are set in quantitative as well as in qualitative terms. Identify the type of standards when it is set in terms of ‘time to be spent’.
Andwer : Quantitative standards

Question. Which term is used to indicate the difference between standard performance and actual performance?
Andwer : Deviation

Question. Give any two standards that can be used by a company to evaluate the performance of its Finance & Accounting department
Andwer : (i) Capital expenditure, Inventories, Flow of capital, Liquidity
 

Please click on below link to download CBSE Class 12 Business Studies Controlling Worksheet Set A

Free study material for Business Studies

Exam Preparation Worksheet for Class 12 Business Studies Chapter 08 Controlling

Chapter 08 Controlling Printable Worksheet for Class 12 Business Studies

Review targeted practice exercises for Class 12 Business Studies Chapter 08 Controlling. Curated to match official CBSE guidelines, these downloadable PDF sheets support daily revision and core concept reinforcement.

How to Use These Practice Sheets

Each worksheet is structured around standard CBSE textbooks, allowing students to check their working steps and correct mistakes early in their revision.

Enhance Speed with Online Practice

Explore our broader library of printable assignments, chapter notes, and mock tests designed to support continuous revision and secure higher marks in CBSE assessments.

FAQs

Where can I download the latest PDF for CBSE Class 12 Business Studies Controlling Worksheet Set 01?

You can download the teacher-verified PDF for CBSE Class 12 Business Studies Controlling Worksheet Set 01 from StudiesToday.com. These practice sheets for Class 12 Business Studies are designed as per the latest CBSE academic session.

Are these Business Studies Class 12 worksheets based on the 2026-27 competency-based pattern?

Yes, our CBSE Class 12 Business Studies Controlling Worksheet Set 01 includes a variety of questions like Case-based studies, Assertion-Reasoning, and MCQs as per the 50% competency-based weightage in the latest curriculum for Class 12.

Do you provide solved answers for CBSE Class 12 Business Studies Controlling Worksheet Set 01?

Yes, we have provided detailed solutions for CBSE Class 12 Business Studies Controlling Worksheet Set 01 to help Class 12 and follow the official CBSE marking scheme.

How does solving CBSE Class 12 Business Studies Controlling Worksheet Set 01 help in exam preparation?

Daily practice with these Business Studies worksheets helps in identifying understanding gaps. It also improves question solving speed and ensures that Class 12 students get more marks in CBSE exams.

Is there any charge for the Class 12 Business Studies practice test papers?

All our Class 12 Business Studies practice test papers and worksheets are available for free download in mobile-friendly PDF format. You can access CBSE Class 12 Business Studies Controlling Worksheet Set 01 without any registration.