Which of the following best describes the most basic responsibility of all businesses in terms of economic responsibility?

• A. To ensure equal distribution of income among all stakeholders
• B. To produce goods and services efficiently and profitably
• C. To maximize social welfare regardless of costs
• D. To minimize government intervention in the market

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of economic responsibility in the context of businesses. Economic responsibility refers to the fundamental duty of a business to be profitable and efficient in producing goods and services.
2. Step 2: Recognize that businesses operate within a market economy where their survival depends on generating profits by meeting consumer demands effectively.
3. Step 3: Analyze each option by comparing it to the core economic role of businesses: producing goods and services efficiently and profitably is essential for business sustainability.
4. Step 4: Note that while social welfare, income distribution, and government intervention are important topics, they are not the primary economic responsibility of businesses but rather relate to broader social or regulatory roles.
5. Step 5: Conclude that the best description of the most basic economic responsibility of businesses is to produce goods and services efficiently and profitably, as this ensures their continued operation and contribution to the economy.