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A business improves its service quality to retain existing customers so that it can remain in the market and avoid closure. Which organisational objective does this most directly support?

Answer and explanation

Correct answer: Survival

Retaining customers helps a business continue operating in the market and avoid closure. Therefore, it most directly represents the objective of survival. Customer retention may also increase profit, but the question specifically emphasises maintaining the existence of the business. Exam tip: Remaining in the market or avoiding closure indicates the survival objective.

Related tags

Business-SurvivalManagement-ObjectivesCustomer-RetentionService-QualityObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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