Two Years Ago,Travis Started His Own Restaurant Supply Company,serving the Greater

question 143

Multiple Choice

Two years ago,Travis started his own restaurant supply company,serving the greater Chicago are A.Until recently,he has never concerned himself with establishing a formal control system.Now,with a recession looming,he is experiencing cost conscious restaurant owners.He has decided that a formal control system is needed.The first step Travis should take is:

• A)draw up a formal organization chart.
• B)talk to his banker to set financial goals.
• C)devise a set of clear performance standards.
• D)design an accident report form so that he can keep accurate records of all accidents that occur.

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Definitions:

Depreciation Expense

The distribution of a physical asset's cost across its anticipated lifespan to reflect its depreciation over time.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, also known as the bottom line.

Private Corporation

A company owned by non-governmental organizations or a relatively small number of shareholders or company members which does not offer or trade its company stock (shares) to the general public.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing shareholders' ownership in the company.