DNG provides electricity to 16 million customers.
it is a limited company which means DNG
shareholders benefit from limited liability. DNG is planning to stop using coal to produce it electricity .
pressure groups had an influence on the decision . the managing director knows there will be an
opportunity cost to making this change. She is considering the best way to communicate this important
to DNG 6500 employees.
Outline how having limited liability might benefit DNG shareholders
Tom wants to leave his job to become an entrepreneur. He and his sister plan to start a window cleaning
business. Tom has been told that new business are at a greater risk of failure than established business.
Tom has to decide whether a partnership is a suitable form of business organization for the new
business. He has calculated the business will need $700 as start- up capital. Tom knows that every
decision he makes will have an opportunity cost.
do you think a partnership is the best form of businesss organisation for a new businiess? justify
your answer
advantages:
Shareholder Expertise: When a company brings shareholders on board, they have a
vested interest in its success. Shareholders may contribute skills, knowledge, or
experience to help the business prosper.
Disadvantages:
Reduced Control: Selling shares means giving up ownership and control. Shareholders
have a say in how the business is run.
Bank Loan (Debt Financing):
Advantages:
o Predictable Repayment: Bank loans have fixed repayment schedules, making
financial planning easier
Disadvantages:
Interest Payments: Loans require regular interest payments, affecting cash flow
Choosing Between Shares and Loans:
Relative Cost of Capital: Companies compare the cost of equity (shares) and debt
(loans). If shares are cheaper, equity financing may be preferred.
In summary, both methods have pros and cons.
1. Building Strong Customer Relationships:
o Exceptional customer service goes beyond mere transactions. It involves actively
engaging with customers, understanding their needs, and empathizing with their
concerns.
o When customers feel heard and valued, they form a personal connection with the
brand. These connections translate into lasting relationships, driving customer
loyalty and repeat business1.
2. Improving Brand Loyalty:
o Consistently delivering excellent service builds trust and reliability.
o Trusting customers are less likely to explore alternatives, even if they come with
lower price tags.
In summary, prioritizing excellent customer service can lead to long-term benefits, increased customer
lifetime value, and a competitive advantage for Samuel’s business. 🌟
