Question

In order to achieve an economic objective of profit making an enterprise indulges in unfair trade practices, such as charging higher prices, low quality products etc. (a) which value is being ignored by the above enterprises? (b) explain profit making as one of the characteristics of business activity.

Answer 1

Explanation:

An enterprise is subject to profit making but cannot indulge himself into unfair trade practices . An enterprise while producing a product has an indirect promise made to the customers regarding safety measures and quality products . An enterprise shall never forget that because of the customers they are succeeding in the field they choose and also making profits. So, exploiting customers will lead to nothing but losing customers and encouraging bad reputation .

Profit making is obviously one of the main characteristics of business activity . But ofcourse, it should be backed by fair means and affairs