How can improving quality increase firm value?
A)Firms can increase activities.
B)Firms can increase costs.
C)Firms can increase customer demand.
D)Firms can increase non-value-added items.

Question

Quizplus · Accepted Answer

Improving quality can lead to increased customer demand due to the reputation and trust built by the firm. This can lead to increased sales and revenue, ultimately increasing the firm's value. Option A and D are incorrect because increasing activities and non-value-added items do not necessarily lead to an increase in value. Option B is incorrect because increasing costs would decrease value.

How Can Improving Quality Increase Firm Value