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To whom does the entrepreneur owe a duty of obligation in meeting the ends of his business?

      

To whom does the entrepreneur owe a duty of obligation in meeting the ends of his business?

  

Answers


Kavungya
Customers
The customer is the most influential stake holder of a business. It is through the customer
that the business can justify its reason for existence. The entrepreneur can ensure that his
customers’ interests are well taken care of in the following ways;
• Treating them with respect. This shows how much they mean to the business
• The entrepreneur should ensure the customer has all the relevant information to make
an informed decision to do with purchasing a product or service. Dishonesty can ruin a
business reputation to an extent that it may never recover its good will
• The entrepreneur should be objective and truthful about the success of his products or
service. He should not exaggerate about the good points of the product or service.
• He should be fair in the manner in which he handles disputes. Customer complaints will
always be there in any kind of business. What the entrepreneur needs to do to achieve
amicable relationship with his clients is to be as cool headed as possible when it comes
to dispute handling.

Suppliers
The entrepreneur needs his suppliers so he can get a continuous supply of commodities for
his customers. He therefore needs to establish good relations with the supplier at all times
• He should uphold ethical business practice. It is the entrepreneur’s duty to act honestly
in all dealings with the suppliers.
• He should be patient with the supplies in waiting for deliveries. The entrepreneur should
give the supplier time between making an order and having the same delivered.
• Should the entrepreneur refuse to take up the suppliers’ products for one reason or
another, it is good business practice to inform the supplier this in writing.

Creditors and lenders of funds
• The entrepreneur should honor the credit policies of creditors and act accordingly in
meeting financial obligations. If he foresees difficulties, he should communicate with
the financiers in good time.
• It is good business practice to acknowledge communications with creditors, whether in
writing or email

Investors
• The entrepreneur needs to constantly update the investors on how the business is
doing. This will assist them make a decision as to whether to invest more or give the
business more time to grow.
• The entrepreneur should ensure the financial statements are prepared on a timely basis
for the regular meetings held with the other stakeholders. He should free himself from
any bias in the preparation of the financial statements.
Kavungya answered the question on April 12, 2021 at 15:27


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