Even retailers that sell many similar products are often different from each other in several key ways. Consider the following descriptions and specify which one best describes each retailer by selecting the correct option from the drop down menu.
1.Trader Joe's offers many organic food choices, healthy food prepared on site, a high quality fresh meat market, and extensive wine selections.It has smaller, upscale stores in major U.S. markets, but is not likely to be found in rural areas of the country. It costs more than major grocery stores and primarily sells food-related items.
2.Sam's Club has stores primarily in major markets. While they are owned by Walmart, there are far fewer Sam's Clubs than Walmarts. Pricing is low because product is sold in bulk. If you can't use 24 hot dog buns before they go stale, this isn't the store for you. Stores are huge and not only sell groceries, but refrigerators, televisions, and more.
3.Vons, QFC, and Safeway are traditional grocery stores that can be found in just about every town. These large stores carry a wide selection of foods and household products. They also often carry an assortment of books, magazines, DVDs, and many stores have pharmacies. Prices are very competitive.
4.Need a soda and a lottery ticket? How about batteries for your headphones before heading to the airport? Maybe you need some snacks for your road trip. 7-Eleven stores are in almost every town and near every major highway, in addition, they are small to facilitate purchasing what you need so you can rapidly return to the road.
1.Limited product categories, small scale, exclusive distribution, premium prices
2.Assortment of product categories, large scale, exclusive distribution, discount prices
3.Assortment of product categories, large scale, intensive distribution, discount prices
4. Assortment of product categories, small scale, intensive distribution, discount prices
When you first started your property management business, your accountant told you that a negative cash flow is often the main cause of small business failure. Keeping that in mind, you want to measure cash flow for your first year of operations. In preparing your cash flow statement, you make the following observations:
Your cash flow from operating activities was a positive $25,000 because you made a net profit of $35,000 and paid off the $10,000 beginning balance in accounts payable..
Your cash flow from investing activities was a positive $15,000, due to the sale of a company maintenance truck you no longer use.
Your cash flow from financing activities was a negative $45,000, due to the repayment of a loan you took out when starting the company.
Based upon your observations, you conclude
For years you have diligently saved your money and now you decide to invest it in a local business. You seek the advice of a large financial services company. The firm provides you with financial data for a restaurant that recently completed a major renovation on its owner-occupied building. The restaurant's financial data for the year prior to, and at the conclusion of the renovation looks like this:
Owner's Equity: $250,000
Cash on Hand: $250,000
Owner's Equity: $150,000
Cash on Hand: $25,000
After studying the financial information above, which of the following statements best describes the financial position of the restaurant?