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Pre-Paid Legal

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Issue:

Business

 

Written by:

Teresa R

 

Date added:

May 15, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 308

 

Was viewed:

6442 times

 

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Essay content:

This also, however, presents a business risk, since the stability of customers acquired by these “trained” associates is unknown and could lead to uncollectible revenues. The growth of the company might also present a risk in that such rapid increases in cash flow could be followed by a definitive reduction in cash flow if members’ cancellation rate increases and PPLS is forced to recover commissions...
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It seems the method by which PPLS disbursed commissions to associates for new members and recorded them starting in 1995 might have caused an unrealistic measure of growth compared to pre-1995 growth. The membership commission advances represented on the balance sheet will likely necessitate recovery as growth continues and the performance of sales associates reaches its peak and begins to decline...
displayed 300 characters

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