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A company applies the cost control principle carefully during recession but adopts the same principle differently during growth. Which nature does this show?

Answer and explanation

Correct answer: Flexibility depending on context and economic condition

The situation illustrates the flexibility of management principles. The underlying objective of cost control may remain relevant in both recession and growth, but the method and intensity of application can differ. During recession, the company may reduce avoidable expenditure and protect liquidity; during growth, it may control waste while spending on capacity, quality, or technology. Option B is correct because it connects adaptation with economic context. Option A introduces an unrelated legal idea. Option C contradicts the change described, and option D is wrong because changing the method does not mean the principle has failed. It shows intelligent application of a general guide.

Related tags

PrinciplesEconomic-ContextFlexibilityNature Of Management PrinciplesPrinciples Of ManagementBusiness StudiesClass 12 Mcq

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