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If an entrepreneur fails to fulfil a promise made to customers on time, what loss is most likely?

Answer and explanation

Correct answer: Loss of customer trust and business credibility

A promise creates an expectation about delivery, quality, service, or timing. When the entrepreneur fails to meet it without a valid explanation or remedy, customers may feel disappointed and become less willing to buy again or recommend the business. Repeated failures can damage goodwill and credibility, and in some situations may also lead to complaints or legal consequences. Therefore, loss of trust and reputation is the most likely immediate business harm.

Related tags

Business-EthicsCustomer-TrustCredibilityBusiness EthicsSocial Responsibilities Of Business And Business EthicsBusiness StudiesClass 11 Mcq

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