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.

Question

Quizplus · Accepted Answer

Failure to understand stakeholders' beliefs and expectations can lead to a performance-expectations gap, where the company's actions do not align with what stakeholders expect, potentially leading to dissatisfaction and conflict.

Failure to Understand the Beliefs and Expectations of Stakeholders