Paper 3 · June 2023 · Business ethics and sources of capital
A firm that consistently deals honestly with its customers and suppliers benefits chiefly because
Agovernment awards it an automatic tax exemption for good conduct.
Bit is guaranteed a monopoly position in its industry.
Cits production costs fall automatically regardless of output.
Dtrust built over time lowers disputes and encourages repeat business.
Explanation
Honesty is not rewarded with a formal prize; it works through reputation: customers who trust a firm return and refer others, and suppliers extend better terms, both of which lower the cost of disputes and lost business over time.
Derived from ZIMSEC Advanced Level Economics 6073/3 Paper 3, June 2023 session, Q1