Match List-I (point of importance of consumer protection) with List-II (what the point says).
| List-I | List-II |
|---|---|
| (A) Government intervention | (I) Exploitative trade practices invite action that can impair and tarnish the image of the company. |
| (B) Long-term interest of business | (II) Consumers form an important group among the many stakeholders of business. |
| (C) Social responsibility | (III) Products and services should not impair public confidence in the business. |
| (D) Business uses society’s resources | (IV) Satisfied customers lead to repeat sales. |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A)-(I), (B)-(IV), (C)-(II), (D)-(III)
| List-I | List-II | Reason |
|---|---|---|
| (A) Government intervention | (I) Exploitative trade practices invite action that can impair and tarnish the image of the company. | A business that exploits consumers invites government action. That action harms the company’s image. |
| (B) Long-term interest of business | (IV) Satisfied customers lead to repeat sales. | Satisfied customers come back and also tell others. This grows the customer base over the long run. |
| (C) Social responsibility | (II) Consumers form an important group among the many stakeholders of business. | A business has duties to many interest groups. Consumers are one such stakeholder group, as the business earns from them. |
| (D) Business uses society’s resources | (III) Products and services should not impair public confidence in the business. | A business uses resources that belong to society. So its products must serve the public interest and keep public confidence. |
NCERT (2026-27 Edition): “(i) Long-term Interest of Business: Enlightened businesses realise that it is in their long-term interest to satisfy their customers. Satisfied customers not only lead to repeat sales but also provide good feedback to prospective customers and thus, help in increasing the customer-base of business. Thus, business firms should aim at long-term profit maximisation through customer satisfaction.” “(ii) Business uses Society’s Resources: Business organisations use resources which belong to the society. They, thus, have a responsibility to supply such products and render such services which are in public interest and would not impair public confidence in them.” “(iii) Social Responsibility: A business has social responsibilities towards various interest groups. Business organisations make money by selling goods and providing services to consumers. Thus, consumers form an important group among the many stakeholders of business and like other stakeholders, their interest has to be well taken care of.” “(v) Government Intervention: A business engaging in any form of exploitative trade practices would invite government intervention or action. This can impair and tarnish the image of the company. Thus, it is advisable that business organisations voluntarily resort to such practices where the customers’ needs and interests will well be taken care of.” |