social responsibility of business Quiz-2

To participate in government programmes relating to management of hazardous substances, cleaning of rivers etc is a legal obligation for every business.

• True

• False

• Can’t say

• Partially true

Answer explanation

Participating in government programmes relating to hazardous substances and river cleaning is not a legal obligation for every business. Therefore, the correct answer is False.

Which of the following are laws enacted for environmental protection?

• The Environment Act, 1986

• The Forests Conservation Act, 1980 Amended in 1988

• The Hazardous Wastes Act, 1989

• All of the above

Answer explanation

The Environment Act, 1986, The Forests Conservation Act, 1980 Amended in 1988, and The Hazardous Wastes Act, 1989 are laws enacted for environmental protection. Therefore, the correct answer is 'All of the above'.

Fast Track Ltd. is a leading manufacturer of automobiles spare parts. The managing director of the company is of the view that business is an economic institution, which exists with the basic objective of profit maximisation and assuming social responsibility is against this objective.However, one of the newly appointed manager tried to convince MD in favour of social responsibility. Which factor is highlighted by the manager to the MD?

• Reality of social responsibility

• Need for social responsibility

• Both (a) and (b)

• None of the above

Answer explanation

The manager highlights the reality and need for social responsibility to the MD.

Which responsibility of the business is not the responsibility of the business to the government?

• Following the pollution laws as set by the government.

• Establishment of the industrial undertaking as per the government norms.

• Providing after sales service.

• Payment of taxes, fees, surcharge etc with the honesty.

Answer explanation

The responsibility of providing after sales service is not the responsibility of the business to the government.

Samarjeet has a sweet shop. During the festive season of Diwali, he purchased adulterated khoya and paneer at very low rates in order to make huge profits.As a result, many people fell sick after consuming the sweets because of food poisoning. Do you think, Samarjeet is a socially responsible sweet seller?

• No

• Partially yes

• Yes

• None of these

Answer explanation

Samarjeet's actions of purchasing adulterated ingredients and causing food poisoning show a lack of social responsibility. The correct answer is 'No'.

Every business enterprise should install pollution control devices in its premises to reduce pollution and avoid penalties.

• True

• False

• Can’t say

• Partially true

Answer explanation

Installing pollution control devices helps reduce pollution and avoid penalties. Therefore, the correct choice is True.

Government intervention is costly to businessmen and restricts their flexibility and freedom of making decisions.

• True

• False

• Can’t say

• Partially true

Answer explanation

Government intervention imposes costs on businessmen and limits their decision-making freedom, making the statement 'True'.

Assertion (A) Legal obligations are the compulsions which should be followed as per the provisions of law.Reason (R) Social responsibility is the voluntary action on the part of business for its society.

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

• Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)

• Assertion (A) is true, but Reason (R) is false

• Assertion (A) is false, but Reason (R) is true

Answer explanation

Legal obligations are compulsions as per the law, while social responsibility is voluntary. The correct choice states that both Assertion (A) and Reason (R) are true, but Reason (R) does not explain Assertion (A) correctly.

Assertion (A) Economic activities of business are legitimate even if business-does not fulfill social responsibility.Reason (R) Services to the society increases the growth chances of business.

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

• Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)

• Assertion (A) is true, but Reason (R) is false

• Assertion (A) is false, but Reason (R) is true

Answer explanation

The correct answer is 'Assertion (A) is false, but Reason (R) is true.' Economic activities of business are not legitimate if they do not fulfill social responsibility. Services to society increase the growth chances of business.

Assertion (A) Social responsibility is a legal responsibility of the business.Reason (R) Companies Act, 2013,provides for the social responsibility of business.

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

• Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)

• Assertion (A) is true, but Reason (R) is false

• Assertion (A) is false, but Reason (R) is true

Answer explanation

Social responsibility is a legal responsibility of the business as per the Companies Act, 2013.