Consider the following statements about the importance of consumer protection from the point of view of business:
(A) Business organisations make money by selling goods and providing services to consumers.
(B) Business organisations should supply products which would not impair public confidence in them.
(C) Business organisations have a responsibility to render services which are in the interest of their shareholders.
(D) Consumers form an important group among the many stakeholders of business.
(E) Business organisations use resources which belong to the government.
Which of the statements given above are correct? Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (B) and (D) only
(A) Business organisations make money by selling goods and providing services to consumers. — Correct. Business organisations make money by selling goods and services to consumers.
(B) Business organisations should supply products which would not impair public confidence in them. — Correct. Their products and services should not impair public confidence in them.
(C) Business organisations have a responsibility to render services which are in the interest of their shareholders. — Incorrect. The responsibility is to serve public interest. The resources come from society, so the duty is towards the public.
(D) Consumers form an important group among the many stakeholders of business. — Correct. Consumers are an important group among the stakeholders of business.
(E) Business organisations use resources which belong to the government. — Incorrect. The resources used by business belong to the society.
NCERT (2026-27 Edition): “(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. |