Final answer:
Jacques Torres is exercising the controlling function of management by choosing not to expand his chocolate business, prioritizing product quality control.
Step-by-step explanation:
When Jacques Torres decides not to expand his chocolate business outside New York due to concerns about managing the quality of the product, he is engaging in the management function of controlling. This function involves the measurement and correction of performance to ensure that enterprise objectives and the plans devised to achieve them are accomplished. In the case of Jacques Torres, the decision is based on his assessment that maintaining the high quality of his chocolates would be challenging at a larger scale. Quality control is a critical aspect of the chocolate industry, where the consistency of the product is essential to maintain the brand's reputation and customer satisfaction.