If a business is growing rapidly, why should the entrepreneur strengthen control systems?
Answer and explanation
Correct answer: To maintain consistency in quality, cost, and service
Rapid growth increases the number of employees, transactions, suppliers, and customers, so the possibility of errors and inconsistency can also rise. Strong control systems—such as clear procedures, budgets, performance checks, and quality monitoring—help the entrepreneur use resources properly and maintain reliable service. The purpose is not to create disorder, reduce customers, or hide profits, but to support controlled and sustainable expansion.
Frequently asked questions
What is the correct answer to this question?
To maintain consistency in quality, cost, and service
Why is this the correct answer?
Rapid growth increases the number of employees, transactions, suppliers, and customers, so the possibility of errors and inconsistency can also rise. Strong control systems—such as clear procedures, budgets, performance checks, and quality monitoring—help the entrepreneur use resources properly and maintain reliable service. The purpose is not to create disorder, reduce customers, or hide profits, but to support controlled and sustainable expansion.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
