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If an entrepreneur uses inferior material only to earn more profit, what is the most likely long-term effect?

Answer and explanation

Correct answer: Decline in customer trust and reputation

Inferior material can reduce product performance, safety or durability. Customers who receive poor-quality products may complain, stop buying and warn others. Over time, this can damage the entrepreneur’s reputation and reduce customer trust, repeat sales and business opportunities. The other options do not follow from using cheaper, lower-quality inputs: quality will not improve automatically, research remains useful, and employee skills are not necessarily affected.

Related tags

Business-EthicsQualityReputationIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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