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Assertion (A): A small enterprise cannot afford to install an expensive control system. Reason (R): Control system loses some of its effectiveness -

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Question

Assertion (A): A small enterprise cannot afford to install an expensive control system.

Reason (R): Control system loses some of its effectiveness when standards cannot be defined in quantitative terms.

Options

  • Both (A) and (R) are true, and (R) is the correct explanation of (A).

  • Both (A) and (R) are true, but (R) is not the correct explanation of (A).

  • (A) is true, but (R) is false.

  • (A) is false, but (R) is true.

MCQ

Solution

Both (A) and (R) are true, but (R) is not the correct explanation of (A).

Explanation -

Control is expensive since it requires a lot of money, time, and effort. A small business cannot afford to implement an expensive control system. It is impossible to justify the costs required. Managers must ensure that the costs of building and operating a control system do not outweigh the benefits that it provides.

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