Whether it is ethical to lengthen the payable periods particularly when dealing with small suppliers. Introduction: Small companies start their business with minimum capital contribution due to financial and other risks. Small suppliers offer the material on credit basis to the small firms.

Question

Want to see the full answer?

Answer 1

Question

Chapter 18, Problem 8CRCT

Summary Introduction

To discuss: Whether it is ethical to lengthen the payable periods particularly when dealing with small suppliers.

Introduction:

Small companies start their business with minimum capital contribution due to financial and other risks. Small suppliers offer the material on credit basis to the small firms.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

3. CONTEXT In 2019 Wal-Mart employed over 1.7 million employees in the U.S. and, in its annual report, recorded an employee turnover rate of about sixty percent. Although Wal-Mart has since made some efforts to improve employee retention, the situation remains substantially unchanged and, more importantly, the underlying principle is still very pertinent. In fact, Amazon actually pays employees who have, (often legitimate) grievances to quit. 4. THE CASE Given the vast number of employees, enormous expense in terms of rehiring and training is to be expected. For purposes of this exercise we presume that employee training pay is above the federal minimum and, more or less the average of state minimums, or about $6.50. We estimate that training time is three and half work weeks of thirty-six and half hours. Since Wal-Mart has about 1.7 million employees, a 60% turnover means hiring and training about a million new people every year. In addition to the cost of the trainee we must add the…

Davis Construction Company has not been doing very well lately. The controller is looking over the invoices for bills that need to be paid this week, and realizes the company is approximately $7,000 short. The only account with excess cash is mandated to be used only for cases of workers' compensation. Can the controller pull the money from that account? O No, that is a short-term investment account, and the money cannot be converted into cash that quickly. O Yes, it is a cash equivalent account, which can be used to supply the money for the bills as long as the money is replaced within the month. O No, that is restricted cash and the money cannot be taken out to cover other expenses. O Yes, it is restricted cash, but as long as the money is replaced within a month of being taken out, it will balance out fine.

Q1. Suppose XYZ Software Company faces the threats given in the following table. Using the table, calculate the ARO and ALE for each threat category that XYZ Software Company faces. Threat Category Cost per Incident (SLE) Frequency of Occurrence Programmer mistakes $5,000 1 per week Loss of intellectual property $75,000 1 per year Assume a year has passed and XYZ has improved security by applying a number of controls. Using the information from the following table, calculate the post-control ARO and ALE for each threat category listed. Cost per Incident Frequency of Cost of Threat Category Occurrence Control Type of Control Programmer mistakes $5,000 1 per month $20,000 Training Loss of intellectual property $75,000 1 per 2 years $15,000 Firewall/IDS Calculate the Cost Benefit Analysis (CBA) for each threat category. For each threat category, determine if the proposed control is worth the costs.