The importance of trust as a fundamental principle underlying business transactions is illustrated by expectations that:

Question

Quizplus · Accepted Answer

Trust is necessary for investors to have confidence that they will receive a return on their investments. Without trust, they may be hesitant to invest in the first place, or may withdraw their investments if they feel that their money is not safe.

B) Employees being discharged without notice is not directly related to trust, but rather to contractual obligations and legal requirements.

C) Litigation being inevitable is not a positive expectation, and is not a result of a lack of trust, but rather of human fallibility and the potential for misunderstandings or disagreements.

D) Insider trading is an illegal practice that undermines trust and fairness in the economic system, but it is not indicative of a fundamental flaw in the system itself.

The Importance of Trust as a Fundamental Principle Underlying Business