The principle of finance that "reputation matters" implies that for institutions or businesses to be successful, they must have the trust and confidence of their customers, employees, and owners, as well as the community and society within which they operate.

Question

Quizplus · Accepted Answer

The statement is true because reputation influences customer loyalty, employee satisfaction and retention, investment decisions, and regulatory compliance, among other factors that affect the financial performance of a company.

The Principle of Finance That "Reputation Matters" Implies That for Institutions