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Old 10-20-2009   #9 (permalink)
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LaurieAG
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Re: Methods of Discount

Quote:
Originally Posted by LaurieAG View Post
And then we can get onto kickbacks vs vendor comissions, later.
Put simply, a kickback is a secret payment/commission agreement between the seller/buyer and a third party that is not declared at the time of the sale. Things become complicated when the buyer is aware of the secret payment as this payment can be a success fee if the third party is a lobbyist paid by either buyer or seller.

On the other hand Vendor commissions are more appropriate when the third party/parties provide declared services to the buyer (free of charge) while having an agreement with the seller to be paid a certain amount for the services rendered at a later date.

Considering the complexity involved with lobbyists, a quantum superposition, it's probably easier to say that kickbacks are illegal when they are hidden from the buyer and are official corruption when politicians and/or public servants and/or political officers become involved.


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Corollary to the Peter Principle: Once you have promoted all of your competents to their highest level of incompetence you must change your management philosophy from top down to bottom up, because the staff at the bottom are the only competent ones in your entire organisation.
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