Match List-I (What a business does) with List-II (Point of consumer protection it shows).
| List-I | List-II |
|---|---|
| (A) A firm sets up a customer service and grievance cell to redress the problems of its consumers | (I) Government intervention |
| (B) A firm follows the guidelines that its chamber of commerce has laid down for dealing with customers | (II) Self-regulation by business |
| (C) A firm satisfies its customers, as satisfied customers lead to repeat sales | (III) Long-term interest of business |
| (D) A firm avoids exploitative practices, as these would invite action by the authorities and tarnish its image | (IV) Business associations |
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 firm sets up a customer service and grievance cell to redress the problems of its consumers | (II) Self-regulation by business | A firm that sets up its own grievance cell is regulating itself. |
| (B) A firm follows the guidelines that its chamber of commerce has laid down for dealing with customers | (IV) Business associations | A chamber of commerce is a business association that lays down a code of conduct for members. |
| (C) A firm satisfies its customers, as satisfied customers lead to repeat sales | (III) Long-term interest of business | Satisfied customers bring repeat sales and good feedback, which serves the firm’s long-term interest. |
| (D) A firm avoids exploitative practices, as these would invite action by the authorities and tarnish its image | (I) Government intervention | Exploitative practices invite government intervention or action, which tarnishes the firm’s image. |
NCERT (2026-27 Edition): “1. Self-regulation by Business: Socially responsible firms follow ethical standards and practices in dealing with their customers Good and ethical practices encourage firms to realise that it is in their long-term interest to serve the customers in a rightful manner. Many firms have set up their customer service and grievance cells to redress the problems and grievances of their consumers.” “2. Business Associations: The associations of trade, commerce and business like Federation of Indian Chambers of Commerce of India (FICCI) and Confederation of Indian Industries (CII) have laid down their code of conduct which lay down for their members the guidelines in their dealings with the customers.” “(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.” “(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.” |