Why is honesty important in business?
Answer and explanation
Correct answer: To build trust
Honesty means giving truthful information, keeping promises where possible, recording transactions accurately, and dealing fairly with stakeholders. It builds trust with customers, employees, suppliers, lenders, and investors, supporting lasting relationships and reputation. Cheating, false promises, and erasing records are dishonest practices that create legal and commercial risks.
Frequently asked questions
What is the correct answer to this question?
To build trust
Why is this the correct answer?
Honesty means giving truthful information, keeping promises where possible, recording transactions accurately, and dealing fairly with stakeholders. It builds trust with customers, employees, suppliers, lenders, and investors, supporting lasting relationships and reputation. Cheating, false promises, and erasing records are dishonest practices that create legal and commercial risks.
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.
