Question

final milestone
judy owns a bookstore/cafe that has always done pretty well. however, a new competitor recently opened a block away, and judys business has decreased.
which of the following decisions would likely constitute an impermissible action on judy’s part?
judy buys stock in the competitor’s business until she’s the majority shareholder.
judy invents a distasteful rumor about her competitor and tells it to her customers.
judy launches a marketing campaign focused on her business’s benefit to the local community.
judy writes a letter to her competitors asking why they opened their store so close to hers.

Explanation:

Permissible business actions include legitimate investment, community-focused marketing, and direct communication with competitors. Spreading false, distasteful rumors about a competitor is an unethical and impermissible practice that violates fair business conduct standards, as it involves deceptive and harmful behavior to undermine a rival.

Answer:

Judy invents a distasteful rumor about her competitor and tells it to her customers.