Responsibility of a business towards its shareholders is _____________.

Giving them more profits

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Giving them fair returns

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Giving them returns more than others

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None of the above

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Solution

The correct option is C Giving them returns more than others
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 $2013$ 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.

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