If an entrepreneur makes a false promise to attract customers, what will be the long-term result?
Answer and explanation
Correct answer: Damage to trust and reputation
A false promise may create an initial sale, but customers eventually compare the claim with the actual product or service. If expectations are not met, complaints, refunds, negative word of mouth, and loss of repeat business may follow. Trust and reputation are long-term business assets, so deceptive promotion is both unethical and commercially harmful.
Frequently asked questions
What is the correct answer to this question?
Damage to trust and reputation
Why is this the correct answer?
A false promise may create an initial sale, but customers eventually compare the claim with the actual product or service. If expectations are not met, complaints, refunds, negative word of mouth, and loss of repeat business may follow. Trust and reputation are long-term business assets, so deceptive promotion is both unethical and commercially harmful.
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.
