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Read the assertion and reason. Assertion: A professional manager should maintain transparency. Reason: Transparency increases stakeholders’ trust. Choose the correct option.

Answer and explanation

Correct answer: Both assertion and reason are true, and the reason correctly explains the assertion

The governing concept is professional accountability through transparent management. Transparency means presenting relevant information honestly, explaining important decisions and avoiding deliberate concealment of facts that affect stakeholders. Such conduct allows investors, employees, customers and regulators to make informed judgements, and it strengthens confidence in the organisation. Consequently, the assertion is true: a professional manager should maintain transparency. The reason is also true because reliable and open information generally increases stakeholders’ trust. It correctly explains the assertion, so option A is the answer. Options B, C and D are incorrect because they reject one or both true statements.

Related tags

Management-As-ProfessionTransparencyStakeholder-TrustManagement As A ProfessionNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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