Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
True
B
False
Understanding the Answer
Let's break down why this is correct
Answer
Focusing only on short‑term profits can hurt a company because it ignores future costs, lost customers, and damaged reputation. When a firm cuts research, skimpers on quality, or burns through cash for quick gains, it may win a few sales now but lose loyal customers and face legal or regulatory problems later. The long‑term health of the business depends on investing in people, technology, and brand trust, which builds sustainable revenue. For example, a phone maker that cuts safety testing to save money may sell many units initially, but later recalls and lawsuits can wipe out those profits and damage the brand for years. A balanced strategy that balances current earnings with future growth is healthier for the organization.
Detailed Explanation
A business strategy is a plan that guides a company over time. Other options are incorrect because Some think strategy is only about money now.
Key Concepts
Business Strategy
Competitive Advantage
Long-term Planning
Topic
Business Strategy
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.