Question

Select the proper option from the option given below and rewrite the completed sentences.

Business is a ________ activity.
(a) Socio-economic
(b) Industrial
(c) Profit making

Answer 1

Correct option- a
Business is a socio-economic activity.

Explanation:
The primary objective of any business enterprise is profit maximisation. Profit acts as a measure of success. However, it is argued that business enterprises are not just profit-making entities. They also fulfil the duties and responsibilities towards society, as their members carry out activities that are favourable to the society. Thus, a business activity has economic as well as social goals. Therefore, it is regarded as a socio-economic activity.