Cash Management Techniques: Discuss the concept of cash rebates and their effect on business; are they ethical?

Among the cash management techniques used by most businesses are those that slow down their bill payments. A good example for this is the concept of cash rebates. Cash rebates are most commonly offered on household items like computers and other electronics.

Research "cash rebates" and other similar cash management techniques. Answer the following questions:

Are these practices sound business decisions? Are they ethical? Explain.
What percentage of the rebates offered are actually paid?

Select a business of which you are familiar, and answer the following question:

Would you recommend that this business use cash rebates?

Solution Summary

This solution provides detailed information on cash management techniques - in particularly on rebates and why offering them may be considered a sound business practice. Information is also given to help you decide on whether such a business practice is considered ethical. An example is given in the solution for a business that you could recommend to offer rebates. This solution is approximately 1600 words.