If an entrepreneur reduces quality by focusing only on profit, what can happen in the long run?
Answer and explanation
Correct answer: Customer trust and sales may fall
Lower quality can produce short-term savings, but customers may experience defects, poor service, or reduced value. Complaints, returns, negative word of mouth, and loss of trust can then reduce repeat purchases and future sales. A brand is not automatically strengthened by cutting quality, and neither complaints nor business risk disappears. Ethical quality management supports long-term success.
Frequently asked questions
What is the correct answer to this question?
Customer trust and sales may fall
Why is this the correct answer?
Lower quality can produce short-term savings, but customers may experience defects, poor service, or reduced value. Complaints, returns, negative word of mouth, and loss of trust can then reduce repeat purchases and future sales. A brand is not automatically strengthened by cutting quality, and neither complaints nor business risk disappears. Ethical quality management supports long-term success.
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.
