Question : A control system that relies on external audits is an example of:
Option 1: Bureaucratic control.
Option 2: Market control.
Option 3: Clan control.
Option 4: Centralized control.
Correct Answer: Bureaucratic control.
Solution : The correct answer is (a) Bureaucratic control.
Bureaucratic control is a system of control that relies on rules, procedures, and hierarchy to ensure that employees are following the organization's policies and procedures. External audits are a form of bureaucratic control because they are conducted by independent auditors who are not affiliated with the organization. The auditors review the organization's financial records and procedures to ensure that they are in compliance with applicable laws and regulations.
Question : Which control technique involves dividing an organization into smaller, manageable units?
Option 4: Decentralized control.
Question : Which control technique involves using competition to regulate performance?
Option 4: Strategic control.
Question : Which of the following is a characteristic of an effective control system?
Option 1: Being rigid and inflexible.
Option 2: Focusing only on financial aspects.
Option 3: Encouraging employee participation.
Option 4: Exclusively relying on external audits.
Question : Case Study 7:
RST Motors is an automobile manufacturer. The company wants to implement an effective control system to ensure that its production processes meet the required quality standards.
Question:
Which control technique would be suitable for RST Motors to ensure product quality?
Question : Case Study 14:
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