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If expenses are increasing in a business but customer satisfaction is decreasing, what should the entrepreneur do first?

Answer and explanation

Correct answer: Analyse the reasons behind service and cost issues

Two negative trends require diagnosis before action. The entrepreneur should examine cost records, service processes, quality, complaints, and customer feedback to identify the causes and their relationship. Only after this analysis can suitable corrective measures be chosen. Raising prices, blaming customers, or closing immediately may worsen the problem without evidence.

Related tags

ControllingDeviation-AnalysisAnalysing DeviationsBusiness StudiesClass 12 Mcq

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