11th Class Business Studies Social Responsibilities Of Business And Business Ethics Question Bank Social Response of Business and Business Ethies (Short)

  • question_answer
    Describe the obligations of business towards owners and shareholders.

    Answer:

    Ans.     Social responsibility of business towards its shareholders or investors is most important of all other obligations.
    If a business satisfies its investors, they are likely to invest more money in a project. As a result, more funds will flow in and the same can be utilized to modernise, expand and diversify the existing activities on a larger scale. Happy financiers can fulfill the rising demand of funds needed for its growth and expansion.
    1. They need to give a fair return to shareholders.
    2. They need to give true and fair information to shareholders.
    3. They need to give them proper opportunity to participate.


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