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 are obligated, both morally and financially, to their investors, who provide capital expecting a reasonable return. A primary obligation to investors is to guarantee equitable returns on their capital, underscoring the trust placed in the business.

• Investors are critical stakeholders who require profitability and transparency.
• Delivering equitable returns secures enduring investor support and solidifies the company's financial stability.

Analysis of Alternative Choices:

• (B) Compensating employees fairly: This obligation pertains to employees, not investors.
• (C) Settling obligations punctually: This relates to responsibilities towards lenders or vendors.
• (D) Supplying superior products: This addresses the commitment to customers.