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Finance: What are Kickbacks? 1 Views


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Description:

What are kickbacks? Well, they're things we don't get for working at Shmoop, that's for sure. Hit play to find out more.

Language:
English Language

Transcript

00:00

Finance allah shmoop What are kickbacks He okay Okay It's

00:08

Not that it's This dark worf at midnight A car

00:14

with no place The nervous guy in the suit He's

00:16

thie it or information technology Head buyer for the bank

00:21

shmoop nar go he's the decision maker on buying three

00:25

billion dollars worth of database software And then there's this

00:29

guy just out of the car He's the head of

00:31

sales of del fi databases are us He'll make a

00:34

three percent or ten million dollar commission on this ten

00:37

year contract If it goes through all it takes is

00:40

this little bit of wd forty to make the wheels

00:44

turn a briefcase full of one hundred grand in unmarked

00:47

bills Yeah That's the grease this dough to the buyer

00:50

It's a kickback and it's an obvious one In real

00:53

life kickbacks are way more insidious secretive clever head of

00:58

sales of del fi owns a beach house in the

01:01

hamptons Maybe he you know lets his buyers stay there

01:05

on weekends And maybe he provides them with well all

01:09

kinds of recreation You can let your mind wander So

01:12

sound like a ludlum me kind of ah spy novel

01:15

With corporate intrigue well guess what This happens all the

01:19

time that's happened a big companies and little hewlett packard

01:22

and oracle and others they've all come down with sales

01:25

People being nailed exacts being fired and businesses well continuing

01:30

to practice this practice more or less The big problem

01:33

Foreign markets yeah there they do kick back so just

01:36

kind of a regular part of doing business So if

01:39

we're trying to play by our rules in america and

01:42

imposing them on some small struggling nation where the people

01:46

are desperate to simply make enough money to feed their

01:48

children wealth and how we think about the morality of

01:51

kickbacks we know this guy's position on the matter We

01:54

should remember that from inside the jail bars when we're 00:01:57.722 --> [endTime] nailed

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