One of the consequence of not following legislative requirements when making decisions about customer complaints is loss of reputation. A company that fails to comply with legislation in handling customers complaints risk losing its reputation, which results to loss of customers. The damage caused to a company's reputation could last longer than financial outlay.
Secondly, is the down time and loss of productivity. When a company breaches certain legislation, it ceases production until the error is corrected. The loss of production results to loss of income, making the company go out of business.
The third consequence is the loss of potential or current staff. This is because the current and potential employees may not want to associate with a company that has a poor record on handling customers complaints. Such a company may have been prosecuted for breaking human rights laws. Therefore, it may be difficult for employees to stay in the company.
The fourth consequence is that the company may be fined for not complying with certain agreements with the customer. Legal and prosecution costs for non-compliance is an expensive exorcise, which may affect the company's finances.
Lastly, it may lead to the imprisonment of the managers of the company. For instance, if the customer goes to court to file a case against the company for not complying with certain agreements they have made, the mangers may be imprisoned.
Kchris answered the question on January 11, 2021 at 09:08
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Using example, differentiate between a firm and an industry
(Solved)
Using example, differentiate between a firm and an industry.
Date posted:
September 27, 2020
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Answers (1)
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The following trial balance was prepared from the books of Bahari Retailers for the year ended 31st December, 2013.
(Solved)
The following trial balance was prepared from the books of Bahari Retailers for the year ended 31st December, 2013.
Required
Prepare
i) Balance sheet as at 31st December. 2013.
ii) Determine a) Working Capital
b) Capital employed
c) Borrowed capital
Date posted:
November 13, 2019
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Answers (1)
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The following data is for country ABC for 2 consecutive years.
(Solved)
The following data is for country ABC for 2 consecutive years.
Explain five reasons why the economic welfare of people in the above country may not have been better off in the year 2014 than the year 2013.
Date posted:
November 13, 2019
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Answers (1)
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The following information relates to Mavuno Traders for the year ended 31 Dec. 2010.
(Solved)
The following information relates to Mavuno Traders for the year ended 31 Dec. 2010.
Required:-
Prepare a trading profit and loss account for the year ended 31 December 2010.
Date posted:
November 13, 2019
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Answers (1)
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The average consumer price for 500g container of cooking fat for various years is shown in the table below.
(Solved)
The average consumer price for 500g container of cooking fat for various years is shown in the table below.
Calculate the consumer price index using the year 2009 as the base year.
Date posted:
November 13, 2019
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Answers (1)
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The features given below describe various product markets. Write the correct product market against each of the features in the spaces provided.
(Solved)
The features given below describe various product markets. Write the correct product market against each of the features in the spaces provided.
Date posted:
November 13, 2019
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Answers (1)
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Moraa bought goods worth shs.500, 000 from Embu Supplies and received a trade discount of 20%. She later paid shs.392, 000 in full settlement of...
(Solved)
Moraa bought goods worth shs.500, 000 from Embu Supplies and received a trade discount of 20%. She later paid shs.392, 000 in full settlement of the amount due. Calculate the percentage cash discount allowed.
Date posted:
November 13, 2019
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Answers (1)
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State four components in the economic environment of a business.
(Solved)
State four components in the economic environment of a business.
Date posted:
November 13, 2019
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Answers (1)
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On 1st March 2015, Mingi Retailers had shs.13,200 in cash and a bank overdraft of shs.56,000. The following transactions took place during the month.
March 2...
(Solved)
On 1st March 2015, Mingi Retailers had shs.13,200 in cash and a bank overdraft of shs.56,000. The following transactions took place during the month.
March 2 Cash sales shs.38,000
March 12 Paid creditors shs.8,200 cash
March 27 received a cheque for shs.6000 from debtors.
March 31 Paid rent shs.10,000 in cash.
Required:-
Record the above transactions in a two-column cash book and balance it off.
Date posted:
November 13, 2019
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Answers (1)
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For each of the following transactions indicate the account to be debited account to be credited and the ledger in which each account would be...
(Solved)
For each of the following transactions indicate the account to be debited account to be credited and the ledger in which each account would be maintained.
Date posted:
November 13, 2019
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Answers (1)
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The following Trial balance was extracted from PEMUR STORES on 31st Dec 2009.
(Solved)
The following Trial balance was extracted from PEMUR STORES on 31st Dec 2009.
Additional information;-
Closing stock was valued at sh. 22,000
Prepare PEMUR STORES; Trading, profit and loss accounts for year ending 31/12/2009.
Date posted:
November 7, 2019
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Answers (1)
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Pemba is an Island within the Indian Ocean. She had registered an improvement in her national income. Explain five factors that may have contributed to...
(Solved)
Pemba is an Island within the Indian Ocean. She had registered an improvement in her national income. Explain five factors that may have contributed to this trend.
Date posted:
November 7, 2019
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Answers (1)
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The table below shows the demand and supply schedules for product A in a week.
(Solved)
The table below shows the demand and supply schedules for product A in a week.
b) Explain five ways of making face to face communication effective.
Date posted:
November 7, 2019
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Answers (1)
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The following transaction took place in Zaodon enterprises in the month of June 2015.
(Solved)
The following transaction took place in Zaodon enterprises in the month of June 2015.
Required
Record the above transactions in the relevant books of original entry.
Date posted:
November 7, 2019
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Answers (1)
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Planning is an important aspect of economic development. Explain five reasons why a country should carry out development planning.
(Solved)
Planning is an important aspect of economic development. Explain five reasons why a country should carry out development planning.
Date posted:
November 7, 2019
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Answers (1)
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Discuss any five reasons why a firm may consider hiring a machine rather than buying.
(Solved)
Discuss any five reasons why a firm may consider hiring a machine rather than buying.
Date posted:
November 7, 2019
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Answers (1)
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Explain five reasons why affirm may consider hiring a machine rather than buying.
(Solved)
Explain five reasons why affirm may consider hiring a machine rather than buying.
Date posted:
November 7, 2019
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Answers (1)
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Give the forms of business units
(Solved)
Give the forms of business units
Date posted:
November 7, 2019
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Answers (1)
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A manufacturing company operates an imprest of sh.10,000. On 1/6/2013 the petty cashier had a balance of sh. 4000. She received a reimbursement to restore...
(Solved)
A manufacturing company operates an imprest of sh.10,000. On 1/6/2013 the petty cashier had a balance of sh. 4000. She received a reimbursement to restore it on 5/6/2013.
The following transactions took place during the month:
June 8 Paid Amos a creditor sh. 500
June 9 Paid postage sh. 300
June 10 Paid for cleaning for sh. 480
June 11 Bought stamps for sh. 180
June 12 Paid for cleaning sh. 750
June 13 Paid for travelling sh. 400
June 14 Paid for tea leaves sh. 450
June 15 Paid for stationery sh. 450
Required:
Prepare the petty cash book for the manufacturing company for the month of June 2013
with the following analysis column.
Travelling, cleaning, stationery, tea, postage, ledger account.
Date posted:
October 31, 2019
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Answers (1)
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The following account balances were extracted from the books of Maisha Traders as at 30th June 2013.
Prepare a trial balance for the business.
(Solved)
The following account balances were extracted from the books of Maisha Traders as at 30th June 2013.
Prepare a trial balance for the business.
Date posted:
October 31, 2019
.
Answers (1)