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A business is making a loss but does not compromise on providing safe products to customers. Which objective is being fulfilled?

Answer and explanation

Correct answer: Social objective

The governing concept is that a business must pursue social responsibility even when its financial results are unfavourable. Providing safe products protects consumers and the community from injury, loss, and avoidable risk. The fact that the business is making a loss makes it clear that the action is not being described as profit maximisation; nevertheless, safety remains a valid social objective. Therefore option A is correct. Profit objective would require earning a return, expansion would involve increasing scale or market reach, and a personal bonus concerns an individual employee rather than customer welfare. Ethical management does not abandon safety standards merely because short-term costs are high.

Related tags

Social ObjectiveProduct SafetyCustomer WelfareEthical ManagementObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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