Scenario 8-3 After Working as an Account Executive in an Advertising Agency

question 79

Multiple Choice

Scenario 8-3
After working as an account executive in an advertising agency for 20 years, you've decided you want to own your own business. You buy Springfield Hardware, a neighborhood hardware store, from a man who has owned and run the business for the past 52 years. He sells you the store and its entire inventory, but with one warning-he wasn't much on paperwork, so there won't be a lot of records to be found. You buy the store and begin to create your ad plan.
-(Scenario 8-3) Due to the lack of records,you have no way of knowing what Springfield Hardware has gone through over the years.You can only guess about the hardware needs of the local population,and the store's target market and customer base.This will be a major hindrance in writing the       sections of your situation analysis.

• A) overview and executive summary 
• B) industry analysis and historical context 
• C) strategy and execution 
• D) historical context and market analysis

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Definitions:

Cash Receipts

Money received by a business during a given period, accounting for its cash inflow.

Cash Payments

Transactions that involve the outflow of cash from a company to settle dues such as expenses, debts, or purchases.

Debit Balance

A situation where the sum of debits in an account exceeds the sum of credits, often indicating the amount owed or expenses.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those shown on a bank statement.