If I Worked in Purchasing in My Company, It Would

question 271

True/False

If I worked in purchasing in my company, it would be a conflict of interest and unethical for me to accept season tickets for my city's NBA team from the company that has supplied catering for the company's training sessions.

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Definitions:

Real Interest Rate

The interest rate that has been adjusted to remove the effects of inflation, reflecting the real cost of funds to the borrower and the real yield to the lender or investor.

Nominal Net Cash Flow

The total amount of cash that flows into and out of a business, not adjusted for inflation.

Inflation Rate

The percentage increase in the general level of prices for goods and services in an economy over a period of time.

NPV

Net Present Value; a financial calculation used to determine the value of a series of future cash flows by discounting them to the present using a specific rate.