NCEA Level 1 Business Studies Practice Test

Fraud within a business typically leads to a significant loss of trust among stakeholders, including customers, employees, partners, and investors. Once fraud is discovered, stakeholders may feel betrayed or misled, which can severely damage the organization's reputation. This loss of trust can result in a decline in customer loyalty, decreased employee morale, and potential legal repercussions, all of which can have long-term negative impacts on the business's success.

In contrast, increased revenue, high customer satisfaction, and greater market share are outcomes that are usually associated with ethical and responsible business practices. However, fraud undermines these positive outcomes, making it highly unlikely for a business engaged in fraudulent activities to experience such benefits in the long run.