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Due to an expansion of a business and to overcome problems of errors, back orders and late payment involving its suppliers, the owner of is considering the use of an advanced and integrated purchasing and cash disbursement system in a near future. As a Business Systems Consultant, provide suggestion of a potential modern purchasing system to be adopted by the company. Your suggestion should contain the description of ONE (1) proposed modern purchasing system and ONE (1) benefit of the modern purchasing system. List the relevant references to support the discussion for this questions. 4 marks
The purchasing manager for same company has sole discretion in selecting vendors for the parts and supplies sold by the company. The manager directs a disproportionate number of purchase orders to a supply company owned by the manager's brother in law which charges above market prices for its products. The manager's relationship with the vendor is unknown to his employer.
Question (a) Explain the type of fraud in the situation above.
Question (b) Discuss the control procedures that can be implemented to prevent the fraud.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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