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In: Accounting

You own a small business that produces high-quality cut flowers. While you have many customers your...

You own a small business that produces high-quality cut flowers. While you have many customers your largest buyer is Blooming Smart Ltd, a large retail outfit with a national chain of outlets that accounts for 50% of your orders on average. Blooming Smart Ltd has now requested that you extend credit terms to them better than what you offer to your other buyers.

A. How could this affect your operating cycle?

B. Do you see anything ethically wrong with what Blooming Smart is trying to do?

C. What would be your strategy(ies) in dealing with this?

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Expert Solution

ekkarill92 answered 1 year ago
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