Q.(a) Explain any five roles of business in consumer protection.

(a) Business should protect consumers because it is socially responsible, in its own long-term interest, morally right, and requires supplying quality goods at fair prices with honest information and grievance redressal. (b) Financial markets are classified by nature of claim (debt/equity), maturity (money/capital), seasoning (primary/secondary) and timing of delivery (cash/futures).

(a) Five roles of business in consumer protection

In the Tamil Nadu HSC Class-12 Commerce course, business has an important part in protecting consumers:

• Fulfilling social responsibility — business uses society's resources, so it is responsible for protecting consumers' interests.
• Long-term self-interest — satisfied, protected consumers stay loyal, which ensures steady sales and survival of the business.
• Moral justification — it is morally wrong to cheat, mislead or exploit consumers; ethical business avoids this.
• Supplying quality goods at fair prices — providing safe, standard-quality products at reasonable prices and correct weights and measures.
• Honest information and grievance redressal — giving truthful advertising and labels, and setting up systems to handle complaints and settle genuine grievances fairly.
• Avoiding unfair trade practices — refraining from adulteration, hoarding, black-marketing and misleading claims (an additional role).

(b) Five kinds of financial market

Financial markets can be classified in several ways:

• By nature of claim — Debt market and Equity market: the debt market deals in fixed-claim instruments (bonds, debentures); the equity market deals in ownership claims (shares).
• By maturity — Money market and Capital market: the money market deals in short-term funds (up to one year); the capital market deals in medium and long-term funds. …