Dave Michaels takes advantage of cash discounts whenever possible. Address the business reason for this decision. Address the ethical ramifications if Dave would take the discount when paying outside the discount period.
What will be an ideal response?
A common issue in small businesses is dealing with a tight cash position; for that reason it makes good business sense to take advantage of cash discounts when available. This reduces costs and increases profits! Also by paying bills early or at the very least always on time, DM’s credit rating will be strong. This will be a benefit in the future if seeking funding for expansion. However, taking cash discounts when making the payment outside the discount period only creates negative goodwill with your vendors—not a smart business decision!
You might also like to view...
Which of the following is an internal trigger to anger?
a. frustration that you did not get promoted because you bombed the presentation and were unable to sign the client b. frustration that your team members did not do their part c. traffic d. irritation that your spouse does not understand your work schedule
________ is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance
A) Segmenting B) Positioning C) Sales promotion D) Benchmarking E) Publicity
Which of the following terms refers to a 30-minute television advertising program that markets a single product?
A) social media B) digital catalog C) telemarketing D) blog E) infomercial
Which earnings per share computation should be reported on the face of the income statement? Basic EPS Diluted EPS
a. Yes Yes b. Yes No c. No Yes d. No No