CA Inter P6 · Chapter 14 · Question 6 of 10
A strategy was built on the assumption that a key raw material's import duty would stay low. Managers set up a system to check regularly whether this and other planning assumptions still hold. This type of strategic control is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Premise control
Explanation
Premise control systematically and continuously checks whether the premises or assumptions on which a strategy rests remain valid. If an assumption changes, such as a sharp rise in import duty, the strategy may need revision. Implementation control assesses whether the strategy should be changed in light of the results of implementation steps.
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