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Improving Cash Flow

Lawerence Sports needs to improve its cash flow which may lead to delaying payment to a small vendor, Murray, who is very dependent on Lawrence Sports. How does Lawrence Sports balance the ethical issue of possibly putting Murray out of business with its need to improve its own cash flow?

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A lot of people don't think that ethics and business can ever really go together in the same sentence however many companies strive to prove that they are ethically moral and use it as a selling point in many instances. There are a few theories that could be used to justify Lawerence Sports delaying point.

The first of these theories is a theory of profit maximization and an obligation to the companies owners and ...

Solution Summary

Lawerence Sports needs to improve its cash flow which may lead to delaying payment to a small vendor, Murray, who is very dependent on Lawrence Sports. How does Lawrence Sports balance the ethical issue of possibly putting Murray out of business with its need to improve its own cash flow?

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