As a Buyer for Your Company,you Direct Large Sums of Money

question 71

Multiple Choice

As a buyer for your company,you direct large sums of money to some suppliers when you make purchases of raw materials from them.One day,you receive an unsolicited $1000 cheque in the mail from one of the suppliers.The accompanying note says that you can use the money to buy some toys for your children.You consult your company's code of ethics and notice that employees are not allowed to accept gifts from suppliers for their own personal use.But the policy doesn't say anything gifts for family members,so you decide to use the card.Which of the following would not support your decision?

• A) The supplier provides low prices that have helped your company be competitive in the market.
• B) The supplier badly needs your purchasing contracts in order to avoid bankruptcy.
• C) You do not have the final say about which bids from suppliers will be accepted.
• D) Your work contract clearly states that you must report all gifts that come from people who work for companies that you do business with.
• E) There are rumours circulating that other employees also received an unsolicited cheque from the supplier.

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Definitions:

Management Of Current Assets

The strategy of managing a company's short-term assets such as cash, inventory, and receivables.

Limited Partner

An investor in a partnership who has limited liability to the extent of their investment and does not partake in day-to-day management.

General Partner

An owner of a partnership who has unlimited liability and is responsible for the management of the partnership.

Liability For Firm Debts

Obligations a company must meet, including all debts and financial responsibilities.