I. TIME CONTEXT
Acme Kemico, a small chemical outfit, was established in the early part of 1986. It was started as a single proprietorship selling paints and house sprays. The office set-up was composed of nine persons namely: a General Manager who was also the owner of the company; an Office Manager who served as the recruiting officer, accountant and overall supervisor; a lawyer who acted as the company’s legal counsel; five salaried salesmen who are directly under the office manager; and a secretary who was bookkeeper and typist for the company.
The general manager was a young man of thirty and a chemistry graduate from one of the leading universities, the office manager as a Master in Business Administration degree. She was a part time professor in business school. A year after, she work as part time in the company and took a full time teaching job.
In 1996, management converted the company into a corporation and consequently changed the name. The General Manager-Proprietor became the President of the corporation and at the same time Chairman of the Board of Directors. An Executive Vice-President was hired to handle the financial and production functions of the corporation. He had five men in his staff. He was also a member of the Board of Directors. The Office Manager was promoted to the position of General Manager. The number of salesmen increased to eighteen.
Additional product lines were acquired by the corporation and new channels of distribution were sought. Consequently, the President frequently traveled abroad to seek and follow up the foreign market for the various products.
The General Manager (formerly Office Manager) was in charge of maintaining satisfactory supplier-dealer relationships, the sales activities and internal supervision including all collection. She took over the general management of the corporation every time the President was out of the country.
Account receivables with subsequent increase in