Tuesday 17 May 2011
The BIG question...
Read the 'Going to a small claims court' case study carefully on page 144. When debtors (people who owe you money) default on payments this can have a 'domino effect' of cashflow problems along the supply chain. i) Explain, using the scenario of the case study what we mean by 'domino effect'. ii) What options does David have if he is to avoid defaulting on paying the bathroom supplier?
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The domino affect means that you if you dontn get paid then the supplys do not get paid which will then probably mean they cant may the manufacturor, If the customer is not paying then you may have to take them to court or pay the supply on his overdraft which will leave him with debt,this is just silly!!
ReplyDeleteThe domino effect is that David didnt have enough money to pay the supplier, and he kept reaching his over draft limit, he then owed more and more money. David had the option to maybe take out a loan so that he could pay the supplier, or maybe borrow money off of a family member or friend.
ReplyDeleteDomino effect mentthat he did not have enough money to pay his workers plus he had overdraft.Davd diddnt want to let his workers down by not paying them. David chould try and get a loan to pay his work's and pay of the. remaining bills etc. But he would then have to work extra hard to give the money back in a good space of time so he doesnt have to pay alot more than he borrowed. But if they where gonig to get a loan they would need to get a short term loan but aND OVERDRAFT WOULD BETTER.
ReplyDeletethe domino effect was that he did not have enough money to pay the worker , and he had a overdraft , but he didnt want to let the worker down by not paying him because he was a friend .
ReplyDeleteDavid could try an get a overdraft , so that means he can still pay the worker , and if he borrows the money he can always pay it back to the bank .
The domino effect is when you dont get paid then you will feel the effects. Then that person wont be able to pay money therefore losing a client, supplier etc. losing out.
ReplyDeleteDavid could get a overdraft or loan
the domino effect is a thing where like you wont get paid anything, then the supplies wont get paid anything and then it would effect someone else. so david didnt get paid, so that the supplies couldnt. taking a small loan out maybe or borrow some money for short term.
ReplyDelete1)The domino effect is when the client does not pay in time and then the business will not have money to pay the supplier in time.
ReplyDelete2)to avoid this happening he could get a overdraft or a loan, he could also then take legal action on the customer that failed to pay.
Ian Burden
the domino effect is where a chain reactions is set off. in this case the customer didnt pay, this meant david couldent pay his supplier.a domino effect is were were one factor defuts and it effcts another and defults that.
ReplyDeletehis options are taking the customer to a small claims court, or ask the supplier for more time to pay. or go to the bank and get a bigger overdraft.
the domino effect is shown in this case study and it means that one thing leads to another with bigger and bigger consiquences. so David didnt get paid, so he couldnt pay back the supplier, he had reached his overdraft limit, he couldnt then pay the supplier, who then wouldnt have the money he needed.
ReplyDeletean option david could have is to take the debtor to a small claims court. so he can get the money back which he is owed by the customer. or david could go to the bank and get an overdraft extension. This means he will be able to take more m,oney out of his accoutn to pay his supplier then pay the overdraft off when hehas then been paid.
Domino effect means a link all down the chain of suppliying, if one of its links is late then all teh other links are affected, so in this case study David has the option to get a overdraft or a small term loan, so that he avoids defaulting on paying the bathroom supplier. because if the supplier doesnt get their money then they cant pay the people they need to pay.
ReplyDeleteChloe Orange
1) David's overdraft had run out. so he couldnt pay back his suppliers for the equipment this is called the domino effect as not only does have no money he also has tarnished the friendship with the supplier
ReplyDelete2), david's options would have been getting an overdraft extenision, he could also of gone to get a loan. meduim or long term.
dominoe effect means that if the customer doesnt pay david, he cant pay the supplier or his account and them the supplier cant buy the materials needed to sell to david. david can apply for an overdraft or ifhe has reached the end of his overdraft, he can ask for an overdraft extension.
ReplyDeletei) In this scenario, the domino effect is the result of the contractor not being paid sufficiently, which could then lead to him losing the ability of paying for supplies which could ruin a good business relationship or he could become bankrupt. It basically has a knock on affect on everything.
ReplyDeleteii) The other options that David has is that he can go and see a bank about getting another overdraft or extending the one he currently has. This means he'll have the money to pay the supplier, and if the court finds in favour in him, he will have the money that the debtor refused to pay, but due to the raised inflation on his new overdraft, he still might not have enough to pay it all off.
The "domino effect" is when the people he does the kitchens for can't pay him so then he doesnt have enough money in his account to pay for his materials. David can go to the bank and apply for a loan or a overdraft.
ReplyDeleteIf the customer doesn't pay Davies builders the money then davies builders can't pay the supplier the money, this is a dominos effect.
ReplyDeleteExtend his overdraft and pay the supplier in
little amounts maybe.
i) The 'domino effect' is where a chain reaction is set off. If one person, in the case the customer who brought the bathroom doeos not pay on time, it had a knock on effect on Davies Builders, meaning they cannot pay their suppliers on time. This is the 'Domino effect'.
ReplyDeleteii) To avoid debt, David could go and see the bank about having an extension on his overdraft, meaning that he can go over his over his usual overdraft. However the bank may put a higher interest rate on this, meaning he has to pay more back in the long time.
Dayna Potter
Domino effect means that when the customer did not pay the company there was a domino effect on everything else on the chain. this means that one falls down they all start going down. .E.G. if one person doenst pay the company he cant pay the person he needs to pay so it is a massive domino chain effect.
ReplyDeletehe has to avoid the payment until he gets the money he could do a overdraft from the bank or borrow the money to pay the suppliers until the customer pays the company the money that he needs to pay the supllier.
Craig Hudson
leeds are poor
ReplyDelete1) if a client doesnt pay what it expected to be payed then the business cannot pay back the materials used with money and if the business doesnt pay back the money then the suppliers cannot pay back the money they other other people for the material and so on.
ReplyDelete2) extend his overdraft and pay the supplier and then goto the small claims court to try and get the money back and then they can payback the bank the extra money he took out. he will have to do this fast becuase the interest rate will rise becuase of this so he is more pressured to pay it back faster
Ali Bennagi
the domino eefect is the manager cant pay his supplyer or his overdfat so then the supplyer cant but his materials ect..
ReplyDeletenuff said peace out
batman and robin lucas
domino effect means he cant pay the supplier and he cant pay his over draft either then the supplier cant by his materials etc.
ReplyDeletealfie einstein borszcz=-)