Question

From the following statements identify the responsibility of business towards investors.

• A. Providing fair returns
• B. Providing fair wages
• C. Making payments on-time
• D. Providing good quality products

Hint:

Investors expect fair returns and transparent management — rewarding them builds long-term credibility.

Answer 1

The Correct Option is A

Businesses have a moral and financial responsibility towards their investors, who contribute capital with the expectation of reasonable returns. One of the key responsibilities of a business towards its investors is to ensure fair returns on their investments. This reflects the trust and confidence investors place in the business.

• Investors are vital stakeholders who expect profitability and transparency.
• Providing fair returns ensures long-term support from investors and strengthens the company’s financial foundation.

Explanation of Other Options:

• (B) Providing fair wages: This is a responsibility towards employees, not investors.
• (C) Making payments on-time: This is associated with responsibility towards creditors or suppliers.
• (D) Providing good quality products: This refers to the responsibility towards customers.