Shawarma Rocket (Scenario) Imagine That You Are the President of Shawarma Rocket, a Shawarma

question 52

Multiple Choice

Shawarma Rocket (Scenario)
Imagine that you are the president of Shawarma Rocket, a new and successful chain of 100 Lebanese fast- food restaurants. The success you have experienced in the last five years has you thinking of what to do with the business next. Should you expand the business at the current rate? Open new and different restaurants?
-Because of the good profits and a fear of growing too fast, you decide to keep Shawarma Rocket in the same business and do not change the menu. You hope to retain the same market share and return- on- investment record. This is considered a ________strategy.

• A) stability
• B) combination
• C) growth
• D) diversification

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Definitions:

Accounts Receivable

Funds that customers owe a company for products or services already received but not yet paid for.

Allowance for Uncollectible Accounts

A contra-asset account that represents the amount of receivables a company does not expect to collect.

Accounts Receivable

Monies owed to a business by its customers for goods or services delivered or used but not yet paid for.

Bad Debt Expense

An expense recognized by businesses for receivables that are considered uncollectible, reflecting estimated losses.