If an entrepreneur focuses only on profit and ignores customer safety, what is the biggest risk?
Answer and explanation
Correct answer: Trust, reputation, and legal standing may be damaged
Ignoring customer safety can cause injury, product recalls, complaints, penalties, lawsuits, and loss of customer confidence. These consequences can damage the business's reputation and financial position, while also creating legal and ethical liability. Profit cannot be treated as a substitute for safety. The words “always” in the other options make them unreasonable and factually wrong.
Frequently asked questions
What is the correct answer to this question?
Trust, reputation, and legal standing may be damaged
Why is this the correct answer?
Ignoring customer safety can cause injury, product recalls, complaints, penalties, lawsuits, and loss of customer confidence. These consequences can damage the business's reputation and financial position, while also creating legal and ethical liability. Profit cannot be treated as a substitute for safety. The words “always” in the other options make them unreasonable and factually wrong.
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.
