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Discussion 5: Vendor Discounts Includes assessment. Must post first. Vendor discounts for early payment are can be attractive for a firm. Discuss the issues and difficulties that can keep a company...

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Discussion 5: Vendor Discounts Includes assessment. Must post first.

Vendor discounts for early payment are can be attractive for a firm. Discuss the issues and difficulties that can keep a company taking an advantage of those discounts. What are some of the ethical issues that can arise?.

Support your answer with at least one credible source which you cite in APA format (both in-text and reference entry).

Answered Same Day Mar 08, 2020

Solution

Shakeel answered on Mar 09 2020
125 Votes
Vendors play an important role in business operation. They smoothes the business operation by providing regular supply of inventories, other goods and services on time. Even they support the working capital requirement of firm by providing goods and services on credit. Now, for the early payment of their supply, they offer discount to the firm. Such step, however, reduces their realized cash but assures the minimization of bad debt. Firm also enjoy the benefit of less payment. However, before taking advantages of such discount offer, following issues and difficulties should be taken into account -
· Early...
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