Consider the following statements about the point ‘business uses society’s resources’:
(A) The resources used by business organisations belong to the society.
(B) Business organisations have a responsibility to render services which are in public interest.
(C) Business organisations have a responsibility to supply products which would not impair public confidence in them.
(D) Business organisations should aim at long-term profit maximisation through customer satisfaction.
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 (C) only
(A) The resources used by business organisations belong to the society. — Correct. Business organisations use resources which belong to the society.
(B) Business organisations have a responsibility to render services which are in public interest. — Correct. So they must render services which are in public interest.
(C) Business organisations have a responsibility to supply products which would not impair public confidence in them. — Correct. Their products should not impair public confidence in them.
(D) Business organisations should aim at long-term profit maximisation through customer satisfaction. — Incorrect. This line belongs to a different point, the long-term interest of business. There, satisfied customers bring repeat sales and a larger customer-base.
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.” |