1 Business Studies - XI (Subhash Dey)
1 Business Studies - XI (Subhash Dey)
SYLLABUS
Business - Concept
Concept includes meaning and features
Business, profession and employment-Concept
Objectives of business
Classification of business activities - Industry and Commerce
Industry-types: primary, secondary, tertiary-Meaning and subgroups
Commerce-trade: (types-internal, external; wholesale and retail) and auxiliaries to
trade; (banking, insurance, transportation, warehousing, communication, and
advertising) - meaning
Business risk-Concept
22 Periods
LEARNING OBJECTIVES
After going through this unit, the student/ learner would be able to:
Understand the concept of business with special reference to economic and
non economic activities.
Discuss the characteristics of business.
Understand the concept of business, profession and employment.
Differentiate between business, profession and employment.
Appreciate the economic and social objectives of business.
Examine the role of profit in business.
Understand the broad categories of business activities-industry and
commerce.
Describe the various types of industries.
State the meaning of commerce, trade and auxiliaries to trade.
Discuss the meaning of different types of trade and auxiliaries to trade.
Examine the role of commerce- trade and auxiliaries to trade.
Understand the concept of risk as a special characteristic of business.
Examine the nature and causes of business risks.
INTRODUCTION
After their Class X exams were over, Aakanksha, Shelly, Shilpa and Chhavi
happened to meet at Shruti’s house on her birthday. I reached there just when they
were sharing their experiences of examination days. After asking about their well-
being, I enquired from each one of them about their career plans. But none of them
had definite reply. I suggested them to opt for business as a promising and
challenging career. Shelly got excited by the idea and said, "Yes, my father is a
businessman." She added that a businessman can earn more money even than an
engineer or a doctor. I said, "Shelly, there is a lot more to business than mere
money." The five classmates began raising many questions: what exactly business is
all about? what is the purpose of business? What else is there in business besides
money? How is business different from non-business activities? And so on.
The conversation among the five classmates is obviously focused on the
nature and purpose of business. Business is all around us and it is the mainspring of
modern life. But very few people understand its true nature and its role in society.
The study of business is essential for training oneself fora career.
All human beings require different types of goods and services to satisfy their
needs and wants. Business is a major economic activity concerned with the
production and sale of goods and services required by people. The purpose behind
most business activities is to earn money by meeting people’s demands for goods
and services. Thus, modern concept of buSiness is founded on the goal of ‘profits
through service’.
- Business - Religious
- Profession - Social
- Employment - Parental
- Patriotic
A teacher teaching in a school —An economic activity
Definitions
1. "Business is an institution organised and operated to provide goods and
services to society under the incentive of private gain."
—B.O. Wheeler
2. "Business may be defined as a human activity directed towards producing or
acquiring wealth through buying and selling of goods."
—Lewis H. Haney
3. "Business is any enterprise engaged in the production and distribution of
goods for sale in market or rendering services for a price."
—R.N. Ownes
4. "Business may be defined as an activity in which different persons exchange
something of value, whether goods or services, for mutual gain or benefit."
—Peterson and Plowman
Characteristics/Features of Business
The nature of business can be understood clearly by studying its main
characteristics, discussed below:
1. An economic activity: Business is considered to be an economic activity
because of the following reasons:
(i) It is undertaken with the object of earning money or livelihood. There is
no place for love, affection, sympathy or patriotism.
(ii) It involves sale, exchange, purchase of goods and services for mutual
profit through the satisfaction of human wants.
(iii) Business requires use of scarce economic resources like land, labour,
capital and machinery.
2. Production or procurement of goods and services: Business enterprise
either manufactures goods (sugar, pen, textbook, machinery, furniture, etc.) or
acquires them from producers. Services include transportation, banking, insurance,
communication, etc.
3. Sale or exchange of goods and services for the satisfaction of human
needs: One of the essential characteristics of business is that there should be sale
or exchange of goods and services between the seller and the buyer. For example, if
a housemaid cooks food for her family at home, it is not a business. But cooking food
and selling it to customers in a restaurant is business.
4. Dealings in goods and services on a regular basis: Business involves
dealings in goods or services on a regular or daily basis. One single transaction of
sale or purchase does not constitute business. For example, sale of old newspaper
by a housewife or the sale of one’s old scooter (even at a profit) is not business
though the seller gets money in exchange.
5. Profit earning: One of the main purposes of business is to earn money by
way of profits. Profit is essential to cover costs and risks of the business. Every
business must earn a reasonable profit to survive and grow. A business cannot
survive without making profits. Indeed, profit is a measure of the success in
business. So, every businessman makes all efforts to maximise profits. However,
profit is not the sole criterion of business. The modern concept of business is
founded on the goal of ‘profits through service’.
6. Uncertainty of return: There is always uncertainty of return and possibility
of loss. Every businessman invests money in his/her business with the objective of
earning profit. However, there is always a possibility of loss.
7. Element of risk: Risk implies the uncertainty of reward or the possibility of
loss. There is always some element of risk involved in business because the future is
uncertain and business has practically no control over several factors affecting
profits. The risks are related to changes in consumer taste and fashions, strikes or
lock-outs in the work place, increased competition, fire, theft, accidents, etc. No
business can altogether eliminate risks, but can minimise it through insurance.
Economic Activities
Business Profession Employment
• Farming • Medical (Doctor) • Workers (Wages)
• Manufacturing goods • Legal (Lawyer) • Employees (Salary)
• Construction • Teaching (Teacher)
(roads, buildings)
• Banking • Accounting (C.A.)
Objectives of Business
Economic objectives
Since business is an economic activity, its main objectives are economic
objectives.
Economic objectives of business are centred around the personal profit of the
business and are based on one slogan ‘to earn maximum profits’.
(a) Profit earning: Business activities are undertaken primarily to earn profit,
which is the excess of income over expenses. Every business must earn a
reasonable profit to survive and grow. A business cannot survive without making
profits. Indeed, profit is a measure of the success in business. Profit is essential for
covering costs and risks of the business.
(b) Survival: It is the basic objective of any business. Manage-ment must
ensure the survival of the organisation. In order to survive, an organisation must earn
enough revenues to cover costs.
(c) Growth: Every business needs to add to its prospects in the long run. For
this it is important for business to grow. Management must exploit fully the growth
potential of the organisation. Indicators of growth of a business are — (a) increase in
sales turnover, (b) increase s in the number of products and employees, etc.
Social objectives
Social objectives of business are centred around the interests of society and
based on the slogan of ‘social welfare’.
It is necessary that business should also pursue certain objectives desired by
the people of the society because business is an integral part of society.
Social responsibility refers to the obligation of business firms to contribute
resources for solving social problems and work in a socially desirable manner.
The social objectives of business should include the following:
(a) Production and supply of quality goods and services: Business should
produce and supply products of proper quality to satisfy customer expectations.
Quality may mean durability as in the case of radio, TV, refrigerator, etc. or purity as
in the case of medicine, or safety as in the case of pressure cooker, electric
appliances, etc. Modern consumers prefer to buy quality products. He looks for ISI
mark on electrical goods, FPO mark on food products, Hallmark on jewellery, etc.
BUSINESS ACTIVITIES
Industry
Industry refers to economic activities which are connected with conversion of
resources into useful goods.
Primary Industry
Extractive
• Farming
• Mining
• Fishing
• Hunting
• Lumbering
• Oil extraction
Genetic
• Cattle breeding farms
• Poultry farms
• Pisciculture
• Nursery
Secondary lndustry
Manufacturing
• Analytical Industry
• Synthetical Industry
• Processing Industry
• Assembling industry
Construction
• Buildings
• Dams and Bridges
• Roads
• Tunnels and Canals
Tertiary Industry
• Transport
• Communication
• Banking
• Insurance
• Warehousing
• Advertising
Commerce
Commerce includes all those activities which are necessary for facilitating the
exchange of goods and services.
Trade
Internal Trade
• Wholesale Trade
• Retail Trade
External Trade
• Import Trade
• Export Trade
• Entrepot Trade
Auxiliaries to Trade (services)
• Banking
• Insurance Transportation
• Warehousing
• Communication
• Advertising
INDUSTRY
Meaning
Industry is concerned with the production or processing of goods and
materials (using mechanical appliances and technical skills). For example, cotton
textile industry produces textile goods from cotton, electronic industry produces
electronic goods like TV, video camera, etc. as well as breeding and raising of
animals.
Thus, industry refers to economic activities which are concerned with
conversion of resources into useful goods.
Types of Industries
1. Primary industries: These industries are connected with:
• the extraction and production of natural resources, and
• reproduction and development of living organisms, plants, etc.
Primary industries may be of following types:
(i) Extractive industries: These industries extract or draw out various products
from natural resources such as earth, soil, water, etc. Farming, mining,
fishing, hunting, lumbering, oil extraction, etc. are examples of extractive
industries. The products of such industries are either directly consumed (e.g.,
fish as food) or used as raw materials for manufacturing and construction
industries (e.g., iron ore is used in steel industry).
(ii) Genetic industries: Genetic means heredity or parentage. These industries
involve breeding or reproduction of plants and animals, e.g., cattle breeding
farms, poultry farms, pisciculture, nursery, etc.
COMMERCE
Meaning
Commerce includes two types of activities — (i) trade and (ii) auxiliaries to trade.
Trade refers to buying and selling of goods and services with the objective of
earning profit.
Activities which are meant for assisting trade are known as auxiliaries to trade
(or services), e.g., transport, communication, banking, insurance,
warehousing, advertising, etc.
Thus, commerce includes all those activities which are necessary for
facilitating the exchange of goods and services.
Types of Trade
On the basis of geographical location of buyers and sellers, trade can broadly
be classified into two categories:
1. Internal trade; and 2. External trade.
Auxiliaries to Trade
Auxiliaries to trade (or services) are described below:
1. Banking : Business needs funds for acquiring assets, purchasing raw
materials and Meeting day-to-day expenses. Necessary funds (in the form of
overdraft and cash credit facilities, loan and advances, etc.) can be obtained
by businessmen from commercial banks. Thus, banking helps business
activities overcome the problem of finance.
2. Insurance: Business involves various types of risks, e.g., theft, fire,
accidents, etc. Insurance makes provision against such risks. By getting their
goods insured, producers can avoid the risk of loss of goods.
3. Transportation: Transport (road, rail or coastal shipping) facilitates
movement of
— raw materials to the place of production, and
— the finished goods from factories to the place of consumption.
— Transportation makes for speed and efficiency in exchange. It is
because of transportation that a producer can sell his goods in different
parts of the world. It creates place utility.
4. Warehousing: Warehousing refers to the holding and preservation of goods
until they are finally consumed. It helps business firms to overcome the
problem of storage of goods and facilitates the availability of goods when
needed. Warehousing creates time utility.
5. Communication: Communication services like postal services and telephone
facilities are helpful to the business for:
— establishing links with the outside world, viz., suppliers, customers,
competitors, etc.
— for quick exchange of information.
— The electronic media is mainly responsible for this transformation.
6. Advertising: Advertising brings goods and services to the knowledge of
prospective buyers. With the help of such knowledge, consumers can obtain
better value for their money. Thus, advertising helps to promote the sale of
products like electronic goods, automobiles, soaps and detergents, etc. by
providing information about them.
Key Terms
Economic Activities—those activities by which we can earn our livelihood.
Non-economic Activities—those performed out of love, sympathy, sentiments,
patriotism, etc.
Business Enterprises or Firms—the organisations which perform a wide variety of
functions like financing, production, marketing, etc.
Professionals—those people who are engaged in professions, e.g., doctor, lawyer,
CA, etc.
Code of Conduct—the guidelines laid down by professional bodies like Institute of
Chartered Accountants of India (ICAI), Medical Council, etc. to be followed by
professionals.
Employees—those who are employed by others.
Wages—the remuneration received in return for an unskilled job.
Salaries—the remuneration received in return for a skilled job.
Capital—the amount invested in business by the owners.
Objectives—ends which a business firm seeks to achieve by its operations, e.g.,
increasing sales by 10%.
Market Standing—the position of an enterprise in relation to its competitors in the
market.
Innovation—introduction of new ideas or methods for producing goods and
services.
Physical Resources/Facilities—machines and equipment, buildings.
Financial Resources—money or funds used in business.
Optimum Use of Resources—best possible use of resources.
Productivity—a measure of efficiency.
Social Responsibility—the obligation of business firms towards society.
Profit—the excess of revenues over costs.
Commerce—all those activities which are necessary for facilitating the exchange of
goods and services.
Lumbering—cutting and preparing forest timber for transport.
Entrepot Trade—goods imported for export to other countries.
Warehousing—the holding and preservation of goods until they are finally
consumed.
Utility—satisfaction/benefit.
Chapter at a Glance
Economic and Non-economic Activities
Economic activities are those activities which are undertaken to earn money and to
create wealth, e.g. a teacher teaching in a school, etc.
Business, profession and employment are economic activities.
Non-economic activities are those activities which are undertaken to satisfy social,
psychological and emotional needs, e.g., a housewife cooking food for her family, a
boy helping an old man cross the road, etc.
Characteristics of Business
DPS PURE*
1. An economic activity 2. Profit earning
3. Uncertainty of return 4. Element of risk
5. Production or procurement of goods and services
6. Sale/ exchange of goods and services for satisfaction of human needs
7. Dealings in goods and services on a regular basis
Objectives of Business
*
The purpose of 'DPS PURE' type of short forms is to enable the students remind the points while
answering questions. Students are advised to make similar short forms of their own choice.
1. Economic objectives
(a) Profit earning (b) Survival
(c) Growth
2. Social objectives
(a) Supply of desired quality of products
(b) Avoidance of anti-social and unfair trade practices
(c) Generation of employment
(d) Welfare of employees
(e) Community service
Business Risks
Business risks refer to the possibility of inadequate profits or even losses due to
uncertainties or unexpected events, e.g., decline in demand for a firm’s product due
to change in taste and fashion of customers.
Nature of Business Risks
1. Business risks arise due to uncertainties
2. Risk is an essential part of every business
3. Degree of risk depends mainly upon the nature and size of business
4. Profit is the reward for risk taking
Types of Trade
1. Internal Trade: Trade which takes place within a country.
(i) Wholesale trade (ii) Retail trade
2. External Trade: Trade between two or more countries.
(i) Import Trade (ii) Export Trade
(iii) Entrepot Trade
Auxiliaries to Trade
1. Banking 2. Insurance
3. Transportation 4. Warehousing
5. Communication 6. Advertising
Answers
1. (d) 2. (b) 3. (a) 4. (b) 5. (d) 6. (a)
7. (b) 8. (c) 9. (d) 10. (a) 11. (d)
2. Name and explain the two characteristics of business which involve possibility
of loss.
(4)
Ans. The two characteristics of business which involve possibility of loss are:
(i) Uncertainty of return: There is always uncertainty of return and
possibility of loss. Every businessman invests money in his/her
business with the objective of earning profit. However, there is always
a possibility of loss.
(ii) Element of risk: Risk implies the uncertainty of reward or the
possibility of loss. There is always some element of risk involved in
business because the future is uncertain. The risks are related to
changes in consumer taste and fashions, strikes or lock-outs at the
work place, increased competition, fire, theft, accidents, etc.
3. "Business is an institution organised and operated to provide goods and
services under the incentive of private gain." Discuss.
(4)
Ans. "Business is an institution organised and operated to provide goods and
services under the incentive of private gain." This statement is correct. The
following points justify the given statement:
(i) Business is an economic activity as it is undertaken with the main
objective of earning profits. Profit is essential to cover costs and risks
of the business. Every business must earn a reasonable profit to
survive and grow.
(ii) It involves sale, exchange, purchase of goods (sugar, pen, textbook,
machinery, furniture, etc.) and services (transportation, banking,
insurance, etc.) on a regular basis for mutual profit through the
satisfaction of human wants.
10. Why does every business enterprise aim at greater productivity? How can this
objective be achieved?
(3)
Ans. Every business enterprise aims at greater productivity to ensure continuous
survival and growth.
This objective can be achieved by:
(i) reducing wastages, and
(ii) making efficient use of machines and equipments, human resources,
money, etc.
14. Define service. Name the service which is related to the following cases:
(3)
(i) The service which helps in removing hindrance of knowledge.
(ii) The service which helps in removing hindrance of place.
(iii) The service which helps in removing hindrance of time.
(iv) The service which helps in removing hindrance of risk.
Ans. Activities which are meant for assisting trade are known as services (or
auxiliaries to trade).
(i) Advertising (ii) Transport
(iii) Warehousing (iv) Insurance
VALUE-BASED QUESTIONS
Values are the significant and fundamental dimensions of human life and indicate
how one adheres, attaches and reacts in life situations or circumstances. They are
the blue prints or action plan which orient and decide the thinking, action feelings
and behaviour itself.
‘Values’ does not mean going back to the superstitions but to bring in
harmony with the present social and cultural conditions, which are acceptable
to the society.
Values cannot be scientifically investigated or proven.
Values affect how we practice.
Values
Testing on animals is banned.
No information about the products on package is violation of Right to
Information Act.
Upliftment and development of tribal society.
Equal opportunity for men and women to grow.
Child labour is banned; so schools should be opened for them.
School and other supportive activities will help in community development.
4. The court passed an order to ban polythene bags as these bags are creating
many environmental problems which affect the life of people in general.
State any two values communicated to the society.
Values
Sensitivity towards the environment
Fulfilling responsibility towards nation
6. Voltech India Ltd. is manufacturing LED bulbs to save electricity and running
under heavy losses. To revive from the losses, the management thought of
shifting the unit to a backward area where labour is available at a low cost.
The management also asked the workers to work overtime without any
additional payment and promised to increase wages of the workers after
achieving its mission. Within a short period the company started earning
profits because both the management and the workers honoured their
commitments.
Identify any two values that the company wants to communicate to the
society.
Values
Concern for the environment
Development of backward regions
8. Telco Ltd. is manufacturing files and folders from old clothes to discourage
use of plastic files and folders. For this, they employ people from nearby
villages where very less job opportunities are available. An employee, Harish,
designed a plan for cost reduction but it was not welcomed by the production
manager. Another employee gave some suggestion for improvement in
design, but it was also not appreciated by the production manager.
Identify the values that the company wants to communicate to the society.
Values
Sensitivity towards the environment
Creation of job opportunities
Development of backward regions
11. Sahil, the director of garments company, is planning to manufacture bags for
the utilisation of waste material of one of his garments unit. He decided that
this manufacturing unit will be set up in a rural area of Orissa where people
have less job opportunities and labour is available at very low rate. He also
thought of giving equal opportunities to men and women.
For this he selected S. Chatterjee, Indrajeet Kaur, Aslam and Sarabjeet as
heads of Sales, Accounts, Purchase and Production departments.
Identify the values which Sahil wants to communicate to the society by setting
up this manufacturing unit.
Values
Development of backward areas
Providing job opportunities in rural areas
Equality
Optimum utilisation of resources
Secularism
12. Harish, the Director of a company, is planning to manufacture stuffed toys for
utilising waste material of one of his garment factories. He decided that this
manufacturing unit will be set up in a rural area so that people of that area will
have more opportunities for jobs. For this he selected Rehman, Anita
Bannerjee, Harpreet Kaur and Umesh (a differently abled but very intelligent
and creative person in designing) as heads of Sales, Accounts, Purchase and
Production departments respectively.
Identify the values that Harish wants to communicate by setting up this
manufacturing unit. Justify your answer.
Values
Optimum utilisation of resources (utilising waste material to manufacture
stuffed toys.)
Generation of employment opportunity to people of rural areas.
Secularism (Heads of Sales, Accounts, Purchase and Production
departments belong to different religions.)
Socially responsible behaviour (selecting Umesh, a differently abled person
as head of production department.)
14. X, Y and Z are partners of a business of manufacturing shoes. The profit for
the year ending March 31, 2015 was Rs.7,20,000. Before distributing profits
they donated 10% of profits to a ‘Non-Govt. organization’ as charity for
welfare of educationally backward section of the society. They also decided to
allow a discount of 30% on shoes for school going children.
Identify the values involved by the partnership firm of X, Y and Z.
Values
Social Responsibility
Help to weaker section of the society
Motivation to school going children
Help to increase the literacy rate
15. Ramesh and 6trrmeet are two friends belonging to Hindu and Sikh religion
respectively. They started a business of wire manufacturing in the form of a
partnership firm. They know that the factory of wire manufacturing pollutes the
environment. Therefore, there are two options available before them. First
option is that the factory can be opened in rural area where local residents are
poor and illiterate. Second option is that an advanced pollution control plant
can be installed in their factory to control the pollution. They decided to
choose the second option which involves an additional cost of Rs.2,00,000.
Mention the values involved in this question.
Values
Good relations between different religions
National integration
Development of minorities
Awareness about pollution control
Use of advanced technology
16. A, B and C are partners in a firm. C uses firm’s money to buy shares without
disclosing it other partners. Which value is C violating and what will be the
treatment of profit earned by C?
Values
C has violated the following values:
Honesty
Integrity
Truth
Breach of mutual trust
C will have to return firm’s money alongwith any profits earned.
17. What are the values involved in the formation of a partnership firm?
Values
Unity
Pooling of Resources
Efficient use of resources
20. Cadbury India Ltd., a chocolate company launched a factory in Baddi, a small
town of Himachal Pradesh. The workers who enter in factory have to wash
their hands with sanitizer and wear overcoat, cap and shoes which are
sterilized every day for which company spends Rs.3,00,000 per month. All
employees working in factory wear gloves and are not allowed to touch
directly either raw material or final product.
All employees irrespective of post have to take food in mess at the same
place and same food for this company. Mention the values involved in this
question.
Values
Equality — all employees treated equally
Health consciousness — use of sanitizer and sterilised clothes
Balanced regional development
Employment to people of hills, raising their standard of living
21. A Cloth manufacturer distributes its defective product at free of cost (after
getting them repaired from Nari Niketan at lower cost) to orphanage. Which
values are being attested in this solution?
Values
Fulfilment of social responsibility
Help to needy class of society
Employment to members of Nari Niketan
Full utilisation of defective product after improvement
23. An industrial unit, working in a backward area opens schools for education at
nominal cost for the children of its employees and local people. By this act
which value is promoted here?
Values
Increasing literacy rate
Development of society
More employment opportunities in backward areas
24. A factory established in a residential locality, uses machines creating heavy
noise while running. Due to noise pollution students can’t study properly and
residents can’t sleep/work properly. Which values are affected here?
Values
Noise Pollution
Bad effect on the health of employees
Bad effect on the studies and health of children
25. An organisation proposes the use of CFLs and LEDs which consume less
electricity than normal bulbs for its lighting arrangements. Which value is
attained by the organization?
Values
Save Electricity
Reduction in Cost
Protection of environment
26. An entrepreneur wants to start his business in backward area because govt.
gives many incentives & rebates in taxes, which results in low cost and he will
be able to sell the product at low prices. There he will be able to get large
area by deforestation. Which values are being affected here?
Values
Environmental degradation (due to deforestation)
Availability of goods at low cost
Development of backward area
Increasing employment opportunities in backward area.
28. In recent times the Govt. has increased the prices of diesel and LPG. Which
value is being overlooked here?
Values
Fall in Standard of living
Increase in Domestic Expenditure
Increase in the cost of agricultural products
29. In a visit to a restaurant, some youngsters were found, smoking in spite of
sign board indicating ‘No Smoking Zone’.
Suggest the values which will help the youth to become responsible citizens
of the nation.
Values
Obedience
Self discipline
Concern for health of other people
Respecting the law of the land
30. Removal of mobile towers from residential area is being planned by the
government to promote which value?
Values
Environment protection
Safety of birds
Safety of Health of Society
32. Tobacco manufacturer is planning to sell its products outside the Schools and
Colleges. Which values are violated here from your point of view?
Values
Bad effect on students’ health
Deprivation of Morality
Social evil
33. An employee has been terminated due to a small mistake without hearing
him, while the other one was not terminated on the same mistake. Which
value has been neglected here?
Values
Biasness
Misuse of rights
Insecurity and groupism in employees
34. In an organisation the good environment, refreshment Corner and
entertainment rooms have been made for all employees. Which values have
been considered here?
Values
Good Working Conditions
Improvement in efficiency and health
Helpful in reducing the stress and tension
36. A wholesaler of onion comes to know that due to less production the prices of
onion will increase heavily. He stores the onion and during rising prices, he
earns heavy profits by selling the stored onion. Here, which value is affected?
Values
Promoting hoarding and black marketing of goods
37. A tea producer uses such packets/things for packing tea, which can be used
even after consuming the tea inside for other purposes. In this which values
are being affected by him?
Values
Optimum utilisation of resources (re-use of the container)
38. A cosmetics manufacturing company claims in advertisement that its face
cream improves the face complexion. On using it was found incorrect. Here,
which values are being ignored?
Values
Cheating the consumers by misleading advertisements
Affect the health of public
Environment protection
39. XYZ Ltd., a firecracker manufacturing firm had launched some new products
on Diwali which attracted many buyers. However, product package did not
have adequate ‘directions for use’, because of which many accidents took
place. Despite the accidents, the product was not withdrawn from the market
by the manufacturers.
List the values that have been overlooked by XYZ Ltd.
Values
Concern for environment
Concern for human life
Social responsibility/responsible behaviour
Sensitivity
40. Mayaram is a sweet maker (Halwai), who collects milk from village to village
and prepares sweet on Deepawali, due to increased demands, he purchased
khoya from other shopkeeper which was adulterated, because it was not
possible to meet the demand from collected milk. For meeting the demand
quickly he has not maintained cleanliness while preparation of sweets. He
kept two children for packing the sweet and one female at cash counter.
Which social values he is affecting and how?
Values
Use of adulterated khoya will badly affect the health of consumer
Child labour is a crime
Spreading diseases due to non-consideration of cleanliness
By employing females, equal opportunities to females
EXERCISE