DECA+ Business Management and Administration Practice Exam

What is wrongful interference in a business setting?

1. Encouraging customers to switch brands

2. Engaging in dishonest advertising practices

3. Drawing customers or employees away from a competitor

4. Creating barriers to market entry for new competitors

The correct answer is: Drawing customers or employees away from a competitor

Wrongful interference in a business setting refers to actions that unjustly disrupt another company's business relationships. This often involves practices that go beyond fair competition. Drawing customers or employees away from a competitor fits this definition, as it involves actively seeking to undermine a competitor's business by diverting their patrons or talent. Such actions could include persuading employees to leave their jobs or enticing customers to switch their loyalty, which disrupts the normal operations and expectations of the competitor. The other choices do not fully capture the essence of wrongful interference. Encouraging customers to switch brands can be considered a part of competitive marketing strategies, and engaging in dishonest advertising practices typically falls under legal issues related to misleading consumers rather than directly disrupting a competitor's relationships. Creating barriers to market entry for new competitors, while a concern in competitive practices, involves regulatory aspects rather than direct interpersonal interference with an existing business.