conflict of interest

Question 1

customer VS owner

Answer 1

• the owners interest is to maximise profits and charge the highest price as possible

• the customer will want value for money and the lowest price as possible

• the customers will want their goods to be of a satisfactory quality for the price they paid

• the owners may try and reduce business costs by using poorer quality materials and customers may want a refund, therefore the business loses sales revenue

• the customer will want delivery of products as soon as possible

• the owner may have difficult on time due to the varying costs of delivery

Question 2

government VS manager/ owner

Answer 2

• the government wants firms to follow all laws

• the owner and managers however, may fight the new laws as costs will rise in legal and administrative costs which will result in reduced profits

Question 3

local community VS manager

Answer 3

• local community want the firm to look after the local environment and be socially responsible

• whereas the manager of the firm may try to cut costs but are polluting the local environment

Question 4

owner VS employees

Answer 4

• employees are likely to want higher wages

• the owner will not want to pay out wages that are too high

• disagreements may occur about the working environment and the owner will have to try and please everyone but may not be able to due to financial restraints

• employees may complain about the temperature of the working environment

Question 5

owner VS manager

Answer 5

• owners will want to maintain control of the business

• managers however, can become too powerful and influential

Question 6

suppliers VS manager

Answer 6

• the managers will want to keep cash in the business as long as possible to improve cash flow

• this will delay paying the suppliers for the goods and services they have provided

• however if suppliers are not paid within a reasonable time then this can cause them financial hardship and cash problems of their own