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.
Frequently asked questions
What is the correct answer to this question?
Loss of customer trust and business credibility
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Social Responsibilities of Business and Business Ethics. Topic: Business Ethics.
