Description of this paper

Assume you are the CFO of a factory that supplies product

Description

solution


Question

Assume you are the CFO of a factory that supplies product to a large well-known retail chain. It is your company's policy, and the general policy of your competitors, to offer product to this retail chain on credit terms of 2/10, net 30. However, it turns out that this large well-known retail chain consistently takes the 2% discount AND pays in 60 days. When pressed, the retail chain responds to all the suppliers that they can choose to either accept the payments as they currently are or lose the business entirely. s this ethical? Should it matter whether this practice is ethical or not? In answering these questions, describe the impact on a small supplier versus a large supplier.

 

Paper#33945 | Written in 18-Jul-2015

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