(A) Assertion is correct, reason is not.
The assertion that a business enterprise should be a loyal citizen of the state is correct. Businesses operate within the framework of society and benefit from the resources, infrastructure, and legal systems provided by the state. Just as individuals have certain responsibilities as citizens, businesses also have an obligation to contribute to the well-being of society and comply with laws and regulations.
The reason provided, "The business is also a part of the system. It makes use of resources of society," is also correct. Businesses rely on various resources provided by society, including human capital, infrastructure, natural resources, and legal systems. By acknowledging this interdependence, businesses are expected to act responsibly, give back to the community, and contribute to the overall development and welfare of society.
Therefore, both the assertion and the reason are correct, and there is a logical connection between them. Businesses should fulfill their role as loyal citizens by recognizing their societal impact and responsibly utilizing the resources provided by society.