Why is honesty necessary for an entrepreneur?
Answer and explanation
Correct answer: To win customer trust
Honesty means giving truthful information, keeping promises, using fair practices, and accepting responsibility for mistakes. These behaviours build customer confidence and support long-term relationships, repeat business, and a good reputation. Therefore option A is correct. Deception and hiding defects may produce short-term gains but violate business ethics and damage trust.
Frequently asked questions
What is the correct answer to this question?
To win customer trust
Why is this the correct answer?
Honesty means giving truthful information, keeping promises, using fair practices, and accepting responsibility for mistakes. These behaviours build customer confidence and support long-term relationships, repeat business, and a good reputation. Therefore option A is correct. Deception and hiding defects may produce short-term gains but violate business ethics and damage trust.
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.
