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An organisation conducts costly tests for customer safety, but the resulting price becomes very high and poorer customers move away. What is the best managerial challenge?

Answer and explanation

Correct answer: Balancing safety, quality, and a fair price

The governing concept is that the social objective includes both protecting customers and making useful goods or services reasonably accessible. Safety testing is necessary because customers should not face avoidable risk, but management must also control processes, improve efficiency, and seek affordable methods so that responsible protection does not exclude a large section of consumers. Option A is correct because the case presents a genuine balancing challenge between safety, quality, cost, and fair pricing. Option B is unacceptable because removing safety creates greater social harm. Option C is false because a higher price is not automatically evidence of better management or value. Option D directly contradicts the customer-oriented nature of the social objective. The appropriate response is innovation and cost management, not abandonment of safety.

Related tags

Social ObjectiveFair PricingCustomer SafetyObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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