Failure to Understand the Beliefs and Expectations of Stakeholders

question 39

Multiple Choice

Failure to understand the beliefs and expectations of stakeholders:

• A) Causes company's profits to increase in the short run.
• B) Causes company's profits to decrease in the short run.
• C) Causes the performance-expectations gap to grow larger.
• D) Increases the chance of a corporate buy-out.

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Definitions:

Ethical

Concerned with or relating to ethics or the standards of right and wrong behavior.

Cause and Effect

A relationship in which one event (the cause) makes another event happen (the effect).

Placebo Effect

The phenomenon where patients experience real improvements in their condition after receiving a treatment that has no therapeutic effect.

Positive Expectations

The belief or anticipation that something good will happen in the future, often leading to more favorable outcomes due to optimistic attitudes.