Question
Question is, is this activity a fraudulent one, ie stuffing the channel to pull in sales. You all know the answer. It depends, there is
Question is, is this activity a fraudulent one, ie stuffing the channel to pull in sales. You all know the answer. It depends, there is nothing necessarily wrong about pulling in a sale, if there is a good business reason, and offering sales prices to do so is acceptable. But, if it is material and will create unnatural deficit in sales in the next quarter, as the customer will obviously not need more goods, it would be a problem if not disclosed. So it may nor may not be a problem from an accounting point of view. From a business point of view, how do you view this. As a shareholder, would you be very happy with the actions of management. Could they have done this to get a bonus they did not deserve. Potentially cause a fraud. What about the loss of profit on the sale. Believe it or not, this behavior is not that uncommon. What do you think of the business practice.
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