The goodwill gained from benefiting the community may be worth more than it costs. Which statement is true?

• A. True
• B. False
• C. Only for nonprofits
• D. Only if tax benefits.

Answer: (A)

Building goodwill in the community can be worth more than the costs. When a business invests in local causes, supports people, or acts in an ethical, community-minded way, it earns trust, loyalty, and positive word-of-mouth. Those intangible gains often translate into higher customer retention, more referrals, and a stronger brand, which can outweigh the upfront and ongoing costs of the effort over time. This isn’t limited to nonprofits or to situations with tax benefits—for-profit businesses can realize substantial long-term value from a good reputation and solid community relationships. So the statement is true.