Test: Social Responsibilities of Business and Business Ethics- Case Based Type Questions - Commerce MCQ

Direction: Read the following text and answer the questions that follow:

Karigar Furniture Ltd., a company manufacturing and trading furniture, was started by Saransh with five of his friends under Start Up India Program. It provides a diverse collection of wooden, plastic, cane, bamboo, and steel furniture at reasonable rates to the customers. They import raw-material from China for the same abiding by the government policy and procedures for imports. The company is earning good profits and donating 5% of profits earned for plantation of trees on highway roadside. The company organises training and skill development programme for its workers. The efficient planning and marketing strategy of the company has offered the owners of the company reasonable appreciation of capital employed.

“...import raw-material from China for the same abiding by the government policy and procedures for imports”.

Q. Identify the kind of responsibility fulfilled here.

Direction: Read the following text and answer the questions that follow:

Shuddh Masala Udyog is a Partnership firm, which deals in trading of all varieties of spices. The partners focus on maximising the profits on the basis of customer satisfaction. Due to increasing competition in the market, the level of profits is falling. One of the partners advised to use substandard raw-material, to do little adulteration in products, and to maintain their profit margin. But the other partners opposed it by saying that the consumers can take legal action against the firm. Suggestion came from other partners to cut down the wages of workers and to withdraw the brunch facility given to them, but it was discarded on the ground that it will create discord and unsatisfactory environment. Finally it was decided that to maintain their profits the firm has to boost its sale and public image by fulfilling the social responsibility.

“...public image by fulfilling the social responsibility...”

Q. Social responsibility improves public image because of the following reasons?

Direction: Read the following text and answer the questions that follow:

Shuddh Masala Udyog is a Partnership firm, which deals in trading of all varieties of spices. The partners focus on maximising the profits on the basis of customer satisfaction. Due to increasing competition in the market, the level of profits is falling. One of the partners advised to use substandard raw-material, to do little adulteration in products, and to maintain their profit margin. But the other partners opposed it by saying that the consumers can take legal action against the firm. Suggestion came from other partners to cut down the wages of workers and to withdraw the brunch facility given to them, but it was discarded on the ground that it will create discord and unsatisfactory environment. Finally it was decided that to maintain their profits the firm has to boost its sale and public image by fulfilling the social responsibility.

“... cut down the wages of workers.”

Q. What is the reality of social responsibility that business firms don’t do this?

Direction: Read the following text and answer the questions that follow:

Shuddh Masala Udyog is a Partnership firm, which deals in trading of all varieties of spices. The partners focus on maximising the profits on the basis of customer satisfaction. Due to increasing competition in the market, the level of profits is falling. One of the partners advised to use substandard raw-material, to do little adulteration in products, and to maintain their profit margin. But the other partners opposed it by saying that the consumers can take legal action against the firm. Suggestion came from other partners to cut down the wages of workers and to withdraw the brunch facility given to them, but it was discarded on the ground that it will create discord and unsatisfactory environment. Finally it was decided that to maintain their profits the firm has to boost its sale and public image by fulfilling the social responsibility.

“...will create discord and unsatisfactory environment.”

Q. Identify the argument in favour of social responsibility in this regard.

Direction: Read the following text and answer the questions that follow:

Shuddh Masala Udyog is a Partnership firm, which deals in trading of all varieties of spices. The partners focus on maximising the profits on the basis of customer satisfaction. Due to increasing competition in the market, the level of profits is falling. One of the partners advised to use substandard raw-material, to do little adulteration in products, and to maintain their profit margin. But the other partners opposed it by saying that the consumers can take legal action against the firm. Suggestion came from other partners to cut down the wages of workers and to withdraw the brunch facility given to them, but it was discarded on the ground that it will create discord and unsatisfactory environment. Finally it was decided that to maintain their profits the firm has to boost its sale and public image by fulfilling the social responsibility.

Q. If the business resorts to substandard raw-material, and does little adulteration in products, which of interest group will be affected:

Match the following stakeholders given in column I with expected social responsibility of enterprise given in column II.

Match the statement given in column I with the elements of business ethics given in column II.