Correct Answer: (C) Dynamic

Explanation of the correct option:
Effective controlling is dynamic in nature. Controlling involves continuous monitoring of activities, comparing actual performance with standards, and taking corrective actions whenever required. Since business environment, plans, standards, and performance conditions keep changing, controlling cannot remain fixed or rigid. It must adjust according to changing situations. Therefore, effective controlling is flexible, adaptive, and dynamic, not static. A dynamic control system helps organisations respond effectively to new challenges and changing business conditions.

Explanation of incorrect options:
(A) Static — This is incorrect because static means fixed or unchanging. Controlling cannot be static because business conditions, standards, and organisational needs continuously change. A static control system becomes ineffective in dealing with new situations and challenges.

(B) Pre-determined — This is incorrect because although standards are pre-determined during the planning stage, controlling itself is not restricted only to pre-decided actions. It requires continuous review, evaluation, and modification according to actual performance and changing circumstances.

(D) All of these — This is incorrect because “Static” is not a characteristic of effective controlling. Therefore, all the options cannot be correct.

Conclusion:
Thus, effective controlling must be dynamic so that it can adapt to changing business conditions and ensure proper achievement of organisational objectives. Hence, the correct answer is (C) Dynamic.

Effective controlling is

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