Improving quality can increase firm value because

Question

Quizplus · Accepted Answer

By improving quality, firms can increase customer demand, leading to higher sales revenue and profits. This increase in demand can also lead to opportunities for the firm to expand its activities and potentially increase its value over time. However, if firms increase costs without a corresponding increase in customer demand or expansion of activities, it may not result in an increase in firm value.

Improving Quality Can Increase Firm Value Because