Why is increasing sales through false advertising not appropriate for an entrepreneur?
Answer and explanation
Correct answer: Because it is unethical and reduces customer trust and business credibility
False advertising makes misleading or untrue claims about a product or service. It can lead customers to make uninformed choices and later lose trust in the business. Therefore, it is unethical and harms the entrepreneur’s long-term reputation and credibility. Changing an advertisement does not itself reduce production cost or improve actual quality. Exam tip: In entrepreneurship questions, link responsible promotion with honesty, customer trust, and long-term goodwill.
Frequently asked questions
What is the correct answer to this question?
Because it is unethical and reduces customer trust and business credibility
Why is this the correct answer?
False advertising makes misleading or untrue claims about a product or service. It can lead customers to make uninformed choices and later lose trust in the business. Therefore, it is unethical and harms the entrepreneur’s long-term reputation and credibility. Changing an advertisement does not itself reduce production cost or improve actual quality. Exam tip: In entrepreneurship questions, link responsible promotion with honesty, customer trust, and long-term goodwill.
Which subject and chapter does this question cover?
This is a Class 11 Home Science question. Chapter: Work, Livelihood and Career. Topic: Entrepreneurship: definition and characteristics.
