Failure to understand the beliefs and expectations of stakeholders:
A) Causes a company's profits to increase in the short run.
B) Causes a 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 the beliefs and expectations of stakeholders often leads to a performance-expectations gap, where the actual performance of a company diverges from what stakeholders expect, potentially harming stakeholder relations and the company's reputation.

Failure to Understand the Beliefs and Expectations of Stakeholders