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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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Date posted: September 27, 2020. 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.
Required
Prepare
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Date posted: November 13, 2019. Answers (1)
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Required:-
Prepare a trading profit and loss account for the year ended 31 December 2010.
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March 2...(Solved)
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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.
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Required:-
Record the above transactions in a two-column cash book and balance it off.
Date posted: November 13, 2019. Answers (1)
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The following Trial balance was extracted from PEMUR STORES on 31st Dec 2009.
Additional information;-
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Date posted: November 7, 2019. Answers (1)
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Date posted: November 7, 2019. Answers (1)
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Date posted: November 7, 2019. 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 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.
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Date posted: October 31, 2019. Answers (1)
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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)