Diversified Consolidated Corporation (DCC) is a supplier for North Manufacturing. As a credit officer at DCC, Kathy is responsible for about $1 million in credits to North. There are rumors that North is in deep trouble. The company has always paid on time and even lists DCC as a credit reference. Nonetheless, Kathy decides that a visit with North's treasurer, Scott, is in order.They have developed a good working relationship over the years, and after a few drinks at lunch, Scott levels with her. He confesses that although North's latest financial statements are technically correct, there has been a sudden reversal, and the company is talking to bankruptcy attorneys. Scott is giving first priority to paying suppliers like DCC, because supplier credit is their only hope for survival. In fact, Scott has just placed a major order with DCC's competitor Basic Products. If there is anything Kathy can do to convince Basic to extend credit, North may get over this hump and bring business back to DCC. Otherwise, North is probably headed for bankruptcy by the end of the quarter.Later that day, Kathy receives a phone call from her friend Mike at Basic Products. Suppliers often share credit information, and Mike asks about North.He has heard rumors, and he wants to make sure all is well before he commits to a major order. He is relieved when Kathy tells him that North continues to make its payments promptly. She asks him to hold the line a moment. Her mind races as she thinks about whether to tell the rest of the story. Discuss the case and how would you react if you were in her position?