Question 1

Social responsibility of business refers to its obligation to take decisions and perform actions which are desirable in terms of:

Accepted Answer

Social responsibility of business refers to the obligation of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society. Therefore, the correct option is objectives and values of our soci

Question 2

Arguments against social responsibility include:

Accepted Answer

The primary argument against social responsibility is the maximization of profit business, which suggests that a business's primary responsibility is to its owners or shareholders by maximizing economic returns. Other social goals should be left to other institutions.

Question 3

Which of the following is a responsibility of business towards shareholders?

Accepted Answer

Providing a fair return on investment and ensuring the safety of capital invested are the primary responsibilities of a business towards its shareholders or investors.

Question 4

Business ethics deals primarily with:

Accepted Answer

Business ethics is primarily concerned with what is right and wrong in business conduct. It provides moral guidelines for decision making and behavior in business operations.

Question 5

The responsibility of a business towards consumers includes:

Accepted Answer

A business has a core responsibility towards consumers to supply goods and services of standard quality at fair and reasonable prices, avoiding adulteration, hoarding, and misleading advertisements.

Social Responsibilities of Business and Business Ethics — CBSE Class 11 Business Studies Important Questions & Revision Notes