Causing major product shortages

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Reference no: EM134044821

Question

During the year, one of Dilmah Ltd's major suppliers went bankrupt one month ago, causing major product shortages. To overcome the problem, David Kim, the husband of the finance director, Ying Kim, provided hardware components to Dilmah Ltd through his private company. There is no formal agreement in place with David Kim, however, the goods are being provided at competitive prices. You are concerned about the components that David Kim' company is supplying, because his products are new to the market and there is rumour that some of Dilmah Ltd's staff complaining that they are of poor quality.

Reference no: EM134044821

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