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B Com Exam  >  B Com Test  >  Business Environment  >  Test: Social Environment - 2 - B Com MCQ

Social Environment - 2 - Free MCQ Practice Test with solutions, B Com Business


MCQ Practice Test & Solutions: Test: Social Environment - 2 (10 Questions)

You can prepare effectively for B Com Business Environment with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Social Environment - 2". These 10 questions have been designed by the experts with the latest curriculum of B Com 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 10 minutes
  • - Number of Questions: 10

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Test: Social Environment - 2 - Question 1
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According to economist Milton Friedman, what is the one and only social responsibility of a business?

Detailed Solution: Question 1

According to Milton Friedman, the one and only social responsibility of a business is to maximize its profits. He believed that a company should focus on earning as much money as possible for its stakeholders. This means that the primary goal of a business is to increase its financial gains rather than addressing societal concerns.

Test: Social Environment - 2 - Question 2
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According to John Mackey, the founder and CEO of Whole Foods, what should a modern company prioritize?

Detailed Solution: Question 2

John Mackey believes that while profits are important, a modern company should prioritize putting the customer first. By focusing on customer happiness and creating value for all stakeholders, a company can build customer loyalty and potentially achieve greater long-term success.

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Test: Social Environment - 2 - Question 3
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What does the "shared value" model of business refer to?

Detailed Solution: Question 3

The "shared value" model of business refers to the idea that companies can address society's needs and challenges while also increasing their profits. This model involves businesses and society working together to achieve economic success by serving societal needs in an efficient and profitable way.

Test: Social Environment - 2 - Question 4
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Which approach to social responsibility argues that companies should focus solely on earning profits?

Detailed Solution: Question 4

The approach to social responsibility that argues companies should focus solely on earning profits is the "Increase the Profit" perspective. Economists like Milton Friedman believe that a company's primary responsibility is to maximize profits for its stakeholders, without any additional obligations towards society.

Test: Social Environment - 2 - Question 5
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According to the text, why do some companies believe that earning profits is the best way to be socially responsible?

Detailed Solution: Question 5

Some companies believe that earning profits is the best way to be socially responsible because it can lead to job creation and business growth. When a company earns profits, it can invest back into the business, expanding or opening markets and potentially creating new jobs, goods, or services. This growth benefits both the company's stakeholders and the overall economy.

Test: Social Environment - 2 - Question 6
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What is the main focus of the "Put the Customer First" approach to social responsibility?

Detailed Solution: Question 6

The main focus of the "Put the Customer First" approach to social responsibility is increasing customer happiness. While profits are important, this approach emphasizes that customer satisfaction should be an end in itself. By prioritizing customers and their needs, companies can potentially build loyal customer bases and achieve long-term success.

Test: Social Environment - 2 - Question 7
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What is the primary goal of the "shared value" business model?

Detailed Solution: Question 7

The primary goal of the "shared value" business model is to address society's needs and challenges while also increasing profits. This model recognizes that businesses can achieve economic success by serving societal needs in an efficient and profitable way. By aligning their beliefs with the betterment of society, businesses can expand or open markets and serve new needs, benefiting both society and their investors.

Test: Social Environment - 2 - Question 8
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According to the text, why do companies believe that earning profits is essential for their stakeholders?

Detailed Solution: Question 8

Companies believe that earning profits is essential for their stakeholders because it leads to job creation and business growth. When a company earns profits, it can invest back into the business, which can result in expanding operations, creating new jobs, and overall business growth. This growth benefits the stakeholders who have invested in the company and can potentially earn a greater return on their investment.

Test: Social Environment - 2 - Question 9
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What is the main argument of economist Milton Friedman regarding a company's social responsibility?

Detailed Solution: Question 9

The main argument of economist Milton Friedman is that companies should focus solely on increasing profits. According to Friedman, the one and only social responsibility of a business is to maximize its profits, assuming there is an honest and open marketplace. He believes that companies do not bear any additional responsibility toward society beyond this goal.

Test: Social Environment - 2 - Question 10
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What does John Mackey believe is the key to a successful business?

Detailed Solution: Question 10

According to John Mackey, the key to a successful business is increasing customer happiness. While profits are important, Mackey argues that putting the customer first and creating value for all stakeholders is crucial. By prioritizing customer satisfaction, companies can potentially build loyal customer bases, leading to greater long-term success.

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About this B Com Practice Test

This test contains 10 MCQs on Social Environment - 2 with detailed solutions for each question. It is part of the Business Environment course on EduRev, designed to align with the current B Com syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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If you found this Social Environment - 2 MCQ Test helpful, you can further enhance your B Com preparation with in-depth courses on EduRev, for all the subjects and topics available in Business Environment course. The course offers:
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