Read the following statements and choose the correct option.
Statement I: Under the point ‘government intervention’, government action against exploitative trade practices can impair and tarnish the image of the company.
Statement II: Under the point ‘government intervention’, it is advisable that business organisations take care of customers’ needs and interests on the directions of the government.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Statement I is correct but Statement II is incorrect.
Statement I: Under the point ‘government intervention’, government action against exploitative trade practices can impair and tarnish the image of the company. — Correct. A business that uses exploitative practices invites government action. This action can impair and tarnish the image of the company.
Statement II: Under the point ‘government intervention’, it is advisable that business organisations take care of customers’ needs and interests on the directions of the government. — Incorrect. The point advises business organisations to take care of customers voluntarily, on their own. If they wait for the government to step in, the action itself harms their image.
NCERT (2026-27 Edition): “(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.” |