Herb Marks Built His Enterprise on the Faithful Patronage of Four

question 184

Essay

Herb Marks built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his two-year contract with Elmore ended.

Herb built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Herb Marks established a brand name, known merely as Marks, and decided to expand on it.

Herb extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Herb's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Marks, as well as nurture existing accounts.

"We make an excellent product," Herb Marks stated, "and we honour a good guarantee on everything we sell. But let's face it—we face hundreds of competitors! We need Marks representatives out there to help prospects understand what they should demand in something as simple as a writing tool."

The Marks brand is now fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Marks representative, before the purchase and long after.

-Explain Herb's market offering.

Understand the process and accounting for issuing stock and the concepts of par value, stated value, and paid-in capital.

Analyze and compute basic and diluted earnings per share (EPS) including understanding its components.

Understand and calculate dividend yield and price-earnings ratio and their significance to investors.

Identify the reasons for and the accounting treatment of prior period adjustments.

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Definitions:

Collagenous Layer

A layer of tissue rich in collagen, which provides strength and flexibility to structures like skin and blood vessels.

Dermis

The thick layer of living tissue below the epidermis that forms the true skin, containing blood capillaries, nerve endings, sweat glands, and hair follicles.

Infiltration

The process by which substances or cells pass through tissue, often referring to the spread of cancer cells or the delivery of fluids/medication.

Temperature Control

The process of regulating the temperature of a system or environment through natural or artificial means.