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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.
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.