Question

24. Explain any six factors that are important to be considered while starting a business
25. Explain social responsibility of business towards 1) consumers 2) government 3) sha​

Answer 1

Answer:

1.Below are some of the most important factors you should consider before starting a manufacturing business.

•Demand for your product. ...

•Setup costs. ...

•Competition from other manufacturers. ...

•Previous experience, knowledge and •qualifications. ...

•Finance available and finance options. ...

•Business location. ...

•Rules and regulations.

2 .b.The main responsibilities of business towards consumers are: To supply better quality goods at the right time in reasonable price. To provide after sale service on the basis of nature of a product. To provide information about the changes introduced by the business.

2.b.The social responsibilities of a business organization towards government can be explained with the help of the following points:-

1. Observation of Rules and Regulation: The organization are required to follow the rules and regulations laid by the government in proper manner.

2. Payment of Taxes: The business organizations must pay taxes and duties regularly to the government such as sales tax, income tax, octroi duty, custom duty, VAT, etc. Non payment of taxes is an offense, because it would be difficult for the government to undertake development programs.

3. Assistance in Implementing Socio-Economic Policies: The government expects co-operation and help from the business sector to help in implementing programs and policies relating to social and economic development.

Answer 2

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6 things to consider before starting a business

• Turn your idea into a plan. Every entrepreneurial journey starts with an idea.

• Self-discipline. This may be one of the most important qualities for an aspiring entrepreneur to have.

• Be flexible.

• Follow your passion.

• Listen to the pros.

• Find a nurturing environment for entrepreneurs.

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Consumers:

Responsibility of business towards consumer extends to:

(i) Product:

Quality goods should be produced and supplied. Distribution system should make goods easily available to avoid artificial scarcities and after sales service should be prompt. Buying capacity and consumer preferences should be taken into consideration while deciding the manufacturing policies. The care must be exercised in supplying the goods of quality which has no adverse effect on the health of consumers.

(ii) Marketing:

To avoid being misled by wrong claims about products through improper advertisements or otherwise, the consumer should be provided full information about the products including their adverse effects, risks and care to be taken while using the products.

Consumers all over the world are, by and large, dissatisfied because the performance of businessman is far from satisfactory. Consumer is not the king in our country but a vehicle used by businessmen for driving towards the goal of profit maximisation.

As a result of which the concept of ‘consumerism’ has come up to protect the rights of consumers. Even the government is interfering in a big way to protect the interests of consumers.

Government:

A number of legislatives are formed from time to time by the government for proper regulation and control of business. Businessmen should comply with all legal requirements, execute government contracts, pay taxes honestly and in time, make services of executives available for government, suggest measures and send proposals to enact new laws for the business.

A number of taxes are imposed on business for collecting revenue. Businessmen should pay various taxes in time and help government in collecting funds. They should not resort to tax evasions rather declare their incomes honestly and correctly.

But series of raids conducted on business houses clearly show that businessmen have failed to discharge their responsibility towards government.

Shareholders:

Shareholders who are the owners of business should be provided with correct information about company to enable them to give them true and fair position of the company to enable them to decide about further investments.

Company should provide a fair return on the investment made by shareholders. If shareholders do not get proper dividend then they will hesitate to invest additional funds in the concern. Shareholders should be kept fully informed about the working of the company for healthy growth of the business. The Companies Act 1956 also requires company to give full disclosure in the published statements.

Company should strengthen the share prices by its growth, innovation and diversification. At the same time shareholders shall also offer wholehearted support and co-operation to the company to protect their own interests.