Question

Although firms cannot stay in business without earning a profit, using profit as the sole guiding light for corporate action can lead to __________ decisions that may in fact cause the firm to __________ customers in the long run.

Answer 1

Relying solely on profit as the guiding factor for decision-making can lead to short-sighted decisions that may harm the long-term success of the firm and its customer relationships.

Step-by-step explanation:

Although profit is essential for a business to stay in operation, relying solely on profit as the guiding factor for decision-making can lead to short-sighted decisions that may harm the long-term success of the firm and its customer relationships.

For example, if a company prioritizes maximizing profit over customer satisfaction, they may cut corners on product quality or customer service, resulting in dissatisfied customers and potential loss of future business.

By considering factors beyond just profit, such as customer needs, market trends, and long-term sustainability, businesses can make more informed decisions that promote customer loyalty and overall success.