Josh,the owner of a software company,is facing cash flow problems.To control the cash outflow,he avoids paying the bills to his vendors.After much delay,he sends a check in payment but intentionally forgets to sign the check.To prevent the cash from going out of his business,Josh is applying the strategy of _____.

Question

Quizplus · Accepted Answer

Josh is intentionally delaying payment and then attempting to prevent payment altogether by forgetting to sign the check - this is an example of gaming the payment process, where he is taking advantage of loopholes or oversights in the payment system to preserve his cash flow. Timing the purchases would refer to manipulating when purchases are made, which is not relevant here. Noncash incentives and trade discount payments are unrelated to this scenario.

Josh,the Owner of a Software Company,is Facing Cash Flow Problems