📚 Learning Guide
Business Strategy
easy

A business strategy is solely focused on maximizing short-term profits, regardless of the long-term implications for the organization.

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Learning Path
Learning Path

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Choose the Best Answer

A

True

B

False

Understanding the Answer

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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

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