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Apple Computers: iPod Rebate Process and Cash Management Techniques

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Use Apple Inc. and discuss the following, including whether it should use cash rebates.

Many businesses use cash management techniques that slow down their rate of bill payments. i.e. Cash rebates are a common offer on many items such as computers/electronics.

1. Are practices such as these good decisions in business and are they ethical?

2. In terms of these rebates, what % is paid?

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Solution Summary

The solution discusses the techniques Apple uses in relation to offering rebates on its products and the percentage of consumers who never cash in the rebate, saving the business millions - 439 words.

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1. Are these practices sound business decisions?

Yes, these are sound business practices. Apple offers special rebates on certain items. While some companies offer instant rebates on products purchased online, such as Sprint Wireless, Apple and many others make the consumer work for the rebate. In doing so, not all who make a purchase will apply for the rebate. Some will be too busy and forget and will not remember until after the rebate deadline. This saves companies millions. The less a company has to pay in rebates, the more revenues a company has.

The amount of the rebate depends on the product purchased. Currently, Apple is offering up ...

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