Question:
The primary economic responsibility of a business is
The primary economic responsibility of a business is
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Remember: The word "Economic" relates to money, markets, and survival. Profit generation is the primary economic engine of a business.
Updated On: Jun 25, 2026
- To earn profits by meeting consumer needs
- To donate for charity
- To control pollution
- To pay taxes honestly
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The Correct Option is A
Solution and Explanation
Step 1: Concept
Businesses have various types of social responsibilities, primarily divided into Economic, Legal, Ethical, and Discretionary categories.
Step 2: Meaning
Since a business is fundamentally an economic institution, its foundational obligation is to survive and grow by generating wealth through operations.
Step 3: Analysis
• Donating for charity is a discretionary or philanthropic responsibility, relying on voluntary goodwill.
• Controlling pollution relates to ethical and legal responsibilities to protect the environment and society.
• Paying taxes honestly is a strict legal responsibility mandated by the laws of the country.
• Earning profits by meeting consumer needs is the core economic responsibility, as it ensures the financial viability of the enterprise and creates value for society.
Step 4: Conclusion
Producing goods and services that society wants and selling them at a profit is the most basic economic role of any business.
Final Answer: (A)
Businesses have various types of social responsibilities, primarily divided into Economic, Legal, Ethical, and Discretionary categories.
Step 2: Meaning
Since a business is fundamentally an economic institution, its foundational obligation is to survive and grow by generating wealth through operations.
Step 3: Analysis
• Donating for charity is a discretionary or philanthropic responsibility, relying on voluntary goodwill.
• Controlling pollution relates to ethical and legal responsibilities to protect the environment and society.
• Paying taxes honestly is a strict legal responsibility mandated by the laws of the country.
• Earning profits by meeting consumer needs is the core economic responsibility, as it ensures the financial viability of the enterprise and creates value for society.
Step 4: Conclusion
Producing goods and services that society wants and selling them at a profit is the most basic economic role of any business.
Final Answer: (A)
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