Match List-I (business situation) with List-II (point of importance of consumer protection from the point of view of business).
| List-I | List-II |
|---|---|
| (A) A dairy sold watered-down milk. The food department sealed it, and its name suffered in the town. | (I) Social responsibility |
| (B) A hotel keeps its guests so pleased that they come back and also send their friends. | (II) Government intervention |
| (C) A paper mill draws water from the town’s river, so it makes products that serve the public interest. | (III) Business uses society’s resources |
| (D) A bank looks after its account holders as one of its stakeholders, like its shareholders and employees. | (IV) Long-term interest of business |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A)-(II), (B)-(IV), (C)-(III), (D)-(I)
| List-I | List-II | Reason |
|---|---|---|
| (A) A dairy sold watered-down milk. The food department sealed it, and its name suffered in the town. | (II) Government intervention | Watering milk is an exploitative practice. It brought action by the food department, and the dairy’s image was tarnished. |
| (B) A hotel keeps its guests so pleased that they come back and also send their friends. | (IV) Long-term interest of business | Pleased guests bring repeat sales and good feedback to new customers. This grows the customer base. |
| (C) A paper mill draws water from the town’s river, so it makes products that serve the public interest. | (III) Business uses society’s resources | The river belongs to society. A firm that uses it must supply products in the public interest. |
| (D) A bank looks after its account holders as one of its stakeholders, like its shareholders and employees. | (I) Social responsibility | The bank treats account holders as one of its stakeholder groups and cares for them like the others. |
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.” |