A major retail outlet is facing shortages for its supplies, and is facing complaints from its customers.  This was due to the company repeatedly delaying payments to their suppliers, resulting in quite a number of them refusing to give further orders until payments have been made.  In the meantime, the retail company is facing cash flow problems.   Comment on the main issue in the above scenario and suggest some solutions to overcome it.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A major retail outlet is facing shortages for its supplies, and is facing complaints from its customers.  This was due to the company repeatedly delaying payments to their suppliers, resulting in quite a number of them refusing to give further orders until payments have been made.  In the meantime, the retail company is facing cash flow problems.

 

Comment on the main issue in the above scenario and suggest some solutions to overcome it.

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