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Assertion: Customer interest is part of the social objective. Reason: Customers are external stakeholders and part of society. Choose the correct option.

Answer and explanation

Correct answer: Both assertion and reason are true and the reason is the correct explanation

The governing concept is the social objective of business, under which an organisation is expected to serve society and protect the legitimate interests of groups affected by its activities. Customers are external stakeholders and members of society; therefore their safety, fair treatment, truthful information, reasonable quality and protection from exploitation are relevant social concerns. The assertion is true, and the reason is also true. More importantly, the reason explains why customer interest falls within the social objective: customers are a social stakeholder group affected by business decisions. Hence option A is correct. The other options incorrectly separate two statements that logically support each other.

Related tags

Assertion-ReasonCustomer-InterestSocial-ObjectivesObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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