Taking a "You" Perspective in the Face of a Mistake

question 54

Multiple Choice

Taking a "you" perspective in the face of a mistake ________.

• A) results in the customer ending all business relations with the company
• B) is considered to be harmful for future business
• C) results in angry customers
• D) is ethical and a good business decision
• E) must be avoided

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Definitions:

Opportunity Costs

The loss of potential gain from other alternatives when one alternative is chosen.

Explicit Costs

Direct, out-of-pocket payments for expenses incurred in conducting business, such as wages, rent, and materials.

Implicit Costs

The opportunity costs that are not directly paid for or incurred in transactions but represent real costs to a business.

Implicit Costs

refer to the opportunity costs that occur when a company uses internal resources that could have been used for another purpose but do not directly affect cash flow.