Among the cash management techniques used by most businesses are those that slow down their bill payments. A good example for this is "Cash Rebates" offered on household items like computers and other electronics.
Are these practices sound business decisions? Are they ethical? Explain.
2. What percentage of the rebates offered are actually paid?© BrainMass Inc. brainmass.com June 3, 2020, 5:54 pm ad1c9bdddf
Cash rebates serve a variety of purposes. Not only do they allow
businesses to hold on to cash from a sale and collect interest on it
for a period of time, but they provide businesses with valuable
information about the marketplace and their customers. Furthermore,
cash rebates are more efficient promotion than a simple price
reduction because not everyone who buys the product will apply for the
As long as the consumer is informed that the selling price includes a
cash rebate prior to the sale and in all advertising, and provided
that the procedure for applying for the rebate is clearly disclosed
and the rebate is paid according to those terms, then it is an ethical
business practice. No one is forced to apply for a rebate, and as
long as they understand before they make the purchase that they will
not receive the "rebate price" without ...
In a 549 word solution, the subject of cash rebates is thoroughly explored.