Balbharti Maharashtra State Board 12th OCM Important Questions Chapter 6 Social Responsibilities of Business Important Questions and Answers.
Maharashtra State Board 12th Commerce OCM Important Questions Chapter 6 Social Responsibilities of Business
Select the correct options and rewrite the sentence
Question 1.
Business organisation should not create profit.
(a) reasonable
(b) secret
(c) maximum
Answer:
(b) secret
Question 2.
Business organisation should avoid creation of ……………….
(a) trade unions
(b) consumers’ cell
(c) monopoly
Answer:
(c) monopoly
Question 3.
Business organisation is a part of ……………….
(a) industry
(b) government
(c) society
Answer:
(c) society
Question 4.
To maintain industrial peace is the responsibility of organisation towards ……………….
(a) customers
(b) employees
(c) society
Answer:
(b) employees
Question 5.
Ultimate goal of business must be satisfaction of …………………
(a) shareholders
(b) consumers
(c) owners
Answer:
(b) consumers
Question 6.
Location of industries should be in ……………….. zones.
(a) residential
(b) industrial
(c) commercial
Answer:
(b) industrial
Question 7.
To maintain safety of investment is responsibility of business towards …………………
(a) community
(b) investors
(c) employees
Answer:
(b) investors
Question 8.
In modern business environment, …………….. provides more opportunities and challenges.
(a) privatisation
(b) globalisation
(c) specialisation
Answer:
(b) globalisation
Match the pairs
Question 1.
| Group A | Group B |
| (A) Responsibility to owners | (1) Negotiations with management |
| (B) Anti-social activity | (2) Pollution control |
| (C) Business ethics | (3) Good working condition |
| (D) Responsibility towards community | (4) Branch of philosophy |
| (E) Trade union | (5) Earning foreign exchange |
| (6) Creating goodwill | |
| (7) To help small scale industry | |
| (8) Confidentiality | |
| (9) Provide often sales services | |
| (10) Smuggling |
Answer:
| Group A | Group B |
| (A) Responsibility to owners | (6) Creating goodwill |
| (B) Anti-social activity | (10) Smuggling |
| (C) Business ethics | (8) Confidentiality |
| (D) Responsibility towards community | (2) Pollution control |
| (E) Trade union | (1) Negotiations with management |
Give one word/phrase/term for the following statement
Question 1.
Code of conduct followed by the business to regulate their behaviour.
Answer:
Business Ethics
Question 2.
Latest trend towards quality control.
Answer:
International Standard Organisation (ISO).
Question 3.
Process of integration of national economy with world economy.
Answer:
Globalisation
Question 4.
An association of employees who have come together to improve their wages, conditions of employment by means of collective bargaining.
Answer:
Trade Union
Question 5.
Responsibility of business organisation, towards environment, towards sustainable development including health and well-being of society.
Answer:
Corporate Social Responsibility (CSR)
Question 6.
Indian philosopher who had promoted concept of social responsibility in ancient times.
Answer:
Chanakya
Question 7.
Running efficient business is the responsibility of business towards this group.
Answer:
Owners.
State whether following statement are true or false
Question 1.
Business ethics are applicable to all business organisations.
Answer:
True
Question 2.
Every business organisation should undertake Research and Development.
Answer:
True
Question 3.
Business ethics can be considered as a tool for social development.
Answer:
False.
Question 4.
A business unit is a part of society.
Answer:
True
Question 5.
Business should not disclose their records to investors.
Answer:
False
Question 6.
Providing career opportunities to employees is the responsibility of business.
Answer:
True
Question 7.
Management should avoid worker’s participation while making decisions.
Answer:
False
Question 8.
Business organisation is not liable to control pollution.
Answer:
False
Question 9.
Ethics is a branch of politics.
Answer:
False
Question 10.
Business organisation can use natural resources as they want.
Answer:
False
Question 11.
Business organisation can participate in solving complex social problems.
Answer:
True
Complete the sentences
Question 1.
Business ethics is a branch of ……………..
Answer:
Social science
Question 2.
……………… should be printed on every product.
Answer:
Maximum Retail Price
Question 3.
Business and society are ……………….
Answer:
interdependent
Question 4.
The ……………….. protects the rights of employees.
Answer:
trade union
Question 5.
All companies shall spend, in every financial year, at least ……………… of the average net profits of the company.
Answer:
2%.
Answer in one sentence
Question 1.
In ancient times who preached and promoted ethical principles while doing business ?
Answer:
Philosophers like Chanakya from India and pre-Christian era philosophers in West, preached and promoted ethical principles while doing business.
Question 2.
Which points are to be considered by the business regarding investment by the investors ?
Answer:
- Fair returns on investment,
- Safety of investment,
- Steady appreciation of business are the points to be considered by the business regarding investment made by investors.
Question 3.
Why is it necessary for the business to provide job security to their employees ?
Answer:
Security of job provides mental peace and employees can work with full dedication and concentration which will raise their morale and ; loyalty towards the organisation.
Question 4.
What should be banned by management to protect the interest of employees ?
Answer:
Management and Trade Union should agree to ban strikes and lockouts to protect the interest of both the parties.
Question 5.
What are 4 R’s in waste prevention techniques?
Answer:
Waste prevention techniques are commonly summarized in 4 ‘R’s:
- Reduction in waste
- Reuse of waste if practicable
- Recycle of waste which cannot be reduced or reused.
- Recover materials or energy from waste, if it cannot be reduced, reused or recycled.
Question 6.
Which companies has to comply with provisions related to CSR under Section 135 of Indian Companies Act 2013 ?
Answer:
Under Section 135 of India Companies Act 2013, the companies having net worth of 1500 Cr or more or turnover of 1000 Cr or more or net profit of 15 Cr or more during any financial year shall be required to comply with provision related to CSR.
Question 7.
How much amount companies are required to spend in pursuance of their CSR policy ?
Answer:
All companies shall spend, in every financial year, at least 2% of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its CSR Policy.
Question 8.
What are penalties for Non-compliance of CSR activities ?
Answer:
Penalties for non-complying the duty of CSR would attract a fine of not less than Rs 50,000 which may extend to Rs 25,00,000 and every officer of the company in default shall be punishable with imprisonment for a term which may extend to 3 years; or with fine which shall not be less than Rs 50,000 which may extend to Rs 5,00,000 or with both.
Attempt the following
Question 1.
Explain the responsibilities of business organisations towards owners.
Answer:
The responsibilities of business organisations towards the owners are explained as follows:
(1) Reasonable profit : The business organisations must earn adequate (reasonable) profit for further growth and expansion. It brings financial stability.
(2) Exploring business opportunities : Opportunity refers to the scope available to the business enterprise to grow, expand and diversify the business. Businessmen should be watchful to find and explore such opportunities. They should take advantage of and exploit every possible opportunity. It is very essential for success of the business.
(3) Optimum use of capital : The business organisations are expected to use available capital more carefully and efficiently. Business risk should be carefully and properly considered. Management should take extra care for the safety of the capital.
(4) Minimise wastage : Management should provide due attention throughout the business to avoid or minimise the wastage of time, money, manpower and other resources. This in turn facilitates business enterprise to maximise its profitability.
(5) Efficient business : Business organisations are expected to make use of available resources up to their optimum level. Efficient use of resources ultimately increases efficiency, productivity and profitability.
(6) Fair practices on stock exchange : The business organisations should avoid all sorts of unfair practices on stock exchange such as insider trading, providing wrong and secret information about the affairs of the company, etc. Artificial increase or decrease in share prices put the common investors to loss.
(7) Expansion and diversification : The business unit must always develop, expand and diversify its business to strengthen and consolidate its position. It should always undertake research and development activities to face competition more successfully.
(8) Periodic information : It is obligatory for a business organisation to provide complete and accurate information in respect to financial position. It should disclose information through reports, circulars, etc.
(9) Effective use of owners’ funds : The company is expected to use the shareholders’ i.e. owners’ funds in the most profitable manner. It helps the organisation to give short term and long term returns in proper time.
(10) Creating goodwill : In order to get respect and trust in the (share) market, the management is expected to develop and maintain good public image of its company.