Improving quality can increase firm value because
A)firms can increase activities.
B)firms can increase costs.
C)firms can increase customer demand.
D)all of the above.

Question

Quizplus · Accepted Answer

Improving quality can increase customer demand, which can lead to increased sales and revenue for the firm. This, in turn, can increase the firm's overall value. Factors such as increased activities or costs may have a mixed effect on firm value and are not necessarily a direct result of quality improvements.

Improving Quality Can Increase Firm Value Because