Final answer:
Unrestrained customer acquisition can result in a negative impact on profits due to the cost of customer acquisition with little offsetting income.
Step-by-step explanation:
The statement is true. Unrestrained customer acquisition can result in negative impacts on profits because the cost of acquiring customers may outweigh the income generated from them. When a business spends a significant amount of money on customer acquisition without seeing substantial returns, it can harm the overall profitability of the company.
For example, if a company spends a large amount on marketing and advertising to acquire new customers, but those customers only make small purchases or fail to become repeat customers, the cost of acquisition may not be justified. In such cases, the business may experience a negative impact on profits despite the effort and resources spent on acquiring new customers.