High error rates can have several adverse effects on a business:
1. Financial Losses: Poor decisions can lead to significant financial setbacks, making it difficult to sustain operations. 2. Reputation Damage: Frequent errors can tarnish a company's reputation, making it challenging to attract customers and investors. 3. Employee Morale: A high rate of errors can demoralize employees, leading to decreased productivity and higher turnover rates. 4. Opportunity Costs: Time and resources spent on correcting errors could have been better utilized in growth-oriented activities.