Answered: Describe a situation where the…

Business

Management

Describe a situation where the interests of the manager and the owner could be in conflict.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

Apex Hospital is in need of major renovation of its electrical system. One of Apex’s governing board members, Willy Watt, is an electrical contractor who is a partial owner of an electrical restoration company. He would like to bid on the project. May he? If he does, what must he do? What must the governing board do? Is there a problem with Mr. Watt’s fiduciary duty? Is there a problem with the governing board’s fiduciary duty? Recommend the best steps that Apex Hospital should follow.
The only water-treatment company in state X has in recent times substantially reduced the fees it charges to purify water for the state. A potential entrant complains that the monopoly in X is practicing predatory pricing since it claims that the incumbent is aware of the potential entrant's intention of entering market X. Discuss whether there is merit in this claim and whether other cooperative or non-cooperative strategies may be more effective in maintaining the incumbent's market dominance. Include diagrams and relevant cases to illustrate and strengthen your answer.
In December 2020, the High Court in Mahikeng, the capital of South Africa’s North West Province, made a controversial order after finding that the Kgetlengrivier Local Municipality was in breach of its legal obligations. The municipality had failed to deliver water and sanitation. It had also failed to prevent environmental pollution in the towns of Koster and Swartruggens. The court issued an interim order that the municipal manager be jailed for 90 days, unless the municipality urgently restored water services and stopped sewage flowing into the local rivers. It also ordered that, unless the municipality acted quickly, a local residents’ association could take control of the water and sewerage systems. The state would then have to pay the residents for doing the municipality’s job. Shortly afterwards, the residents took over delivery of water and sanitation and managed to restore both systems to working order. The municipality strongly objected to the take-over. But, in January, the…
The Carlson Department Store suffered heavy damage when a hurricane struck on August 31, 2013. The store was closed for four months (Sept – Dec 2013) and Carlson is now involved in a dispute with its insurance company concerning the amount of lost sales during the time the store was closed. Two key issues must be resolved: The amount of sales Carlson would have made if the hurricane had not struck; and Whether Carlson is entitled to any compensation for excess sales from increased business activity after the storm More than $8 billion in federal disaster relief and insurance money came into the county, resulting in increased sales at department stores and numerous other businesses. The table below shows the sales data for the 48 months preceding the storm. The following table reports total sales for the 48 months preceding the storm for all department stores in the county, as well as the total sales in the county for the four months the Carlson Department Store was closed. Management…
The City of Dover needs land owned by the Smith family to expand Route 13/North DuPont Highway. The Smith family does not want to sell. Discuss what course of action the city can take and the legal and constitutional basis for this action. What, if anything, can the Smith family do in response?
A. CASE: FABULOUS FABRICS, Inc. Mwiinga was recently promoted to the managing director's position at Bwino Fabrics, Inc. in Mufulira. In her new position, Mwiinga first compared the actual revenues and expenses of the company with desired results. Armed with this analysis, he formulated the future course of action for Bwino Fabrics. Mwiinga transmitted her revenue and expense analysis to outsiders such as bankers and other analysts and distributed her desired future course of action for Bwino Fabrics to his subordinates. All these groups then provide him with feedback through reports. Mwiinga is confident he can lead the company into a prosperous future. Unfortunately the company has just made changes in the way it manufactures and markets its products. These changes are producing issues associated with employee motivation and satisfaction. The company has sent some of their manufacturing offshore to South Africa, and their plants have been restructured into self-directed work teams.…
Read through the scenario below then state how you would rule / decide if you were the Judge on this matter. SCENARIO The Warren family signed an exclusive real estate listing agreement with Detlefsen real estate brokerage to sell their property. The agreement provided that the Warren's were obligated to pay a commission of 5% of the sales price if they sell the property to any person during the term of the exclusive listing agreement. The term of the agreement was six months long running from January 1 of the year through June 30th. Detlefsen marketed the property and secured several offers with the highest offer being $700,000 from Ivy Jones which the Warren's agreed to on May 30th of that year. This sales contract had a provision that in the event of default by the Warren's Ivy Jones only recourse would be a refund of her $10,000 deposit. Subsequently, a friend of the Warren's, Zaine Johnson a person unknown to Detlefsen, found out the Warrens were selling the property and offered…
In 1961, Ford Motor Company acquired Autolite, a manufacturer of spark plugs, in order to enter the profitable aftermarket for spark plugs sold as replacement parts. Ford and the other major automobile manufacturers had previously purchased original equipment spark plugs (those installed in new cars when they leave the factory) from independent producers such as Autolite and Champion, either at or below the producer’s cost. The independents were willing to sell original equipment plugs so cheaply because aftermarket mechanics often replace original equipment plugs with the same brand of spark plug. GM had already moved into the spark plug market by developing its own division. Ford decided to do so by means of a vertical merger under which it acquired Autolite. Prior to the Autolite acquisition, Ford bought 10 percent of the total spark plug output. The merger left Champion as the only major independent spark plug producer. Champion’s market share thereafter declined because Chrysler…
Identify and explain at least 4 Control Activities being implemented by entities to manage risks.
identify and enumerate different situations and practices that continue unsafe and act condition.
Brendan Quinlan and Maeve Lynch are a couple. They decided to open an Irish restaurant in Changchun, a small town in Northeast China. There were no other Irish restaurants in Changchun, and the possibility of doing something new and somewhat risky intrigued the young people. They purchased an old bistro just off Main Street for their new restaurant, which they named "The Bridge 1988". Brendan and Maeve knew in advance that at least initially they could not offer a full, varied menu of dishes. They had no idea what their local customers' tastes in Irish cuisine would be, so they decided to serve only two full-course meals each night, one with beef and the other with fish. Brendan, their chef, was confident he could make each dish so exciting and unique that two meals would be sufficient, at least until they could assess which menu items were most popular. Brendan indicated that with each meal he could experiment with different appetizers, soups, salads, vegetable dishes, and desserts…
SCENERIO 1: After his retirement in September 2019, A moved to Antalya, bought a building and did all arrangements to convert the building to a hotel. When he finished all the works as to the hotel, it was 15 January 2020. Since it was not a summer season, A decided not to operate the hotel actively until 15 May 2020. However, A opened a website for this hotel on 15 January and announced there that she established a commercial enterprise and gave information there as to reservation, fee and address of the hotel and uploaded the photos of the hotel. She printed circulars as to hotel and handed out to people. She also registered his commercial enterprise to the Commercial Register. QUESTION 1: According to the scenario 1 given above, choose the correct statement among followings: ....................... a) Article 1523 of TCC imposes an obligation on every merchant to open a website. b) A had a status of merchant on 15 May 2020 since this was the date which the hotel started to be…