Janice Was Thrilled with the First Two Years of Operations

question 101

Multiple Choice

Janice was thrilled with the first two years of operations. Her new company-specializing in manufacturing and distributing yoga mats, props, and yoga wear-had been growing steadily and was on track to make a 14 percent profit at the end of this, her second year. Then she started to notice sales slipping in the 11th month of the year. This is a month that normally starts to see sales increases. She had just hired a key employee to work on business development, and she wondered if this downturn would trend into the 12th month and then into her third year of business. Thankfully Janice had some good advice when she launched her venture because she knew exactly how to handle the situation. Along with her business plan, she had created a(n) _____________.

• A) layoff plan
• B) contingency plan
• C) golden parachute
• D) escape plan
• E) strategic plan

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered but not yet paid for.

Bank Reconciliation

involves comparing a company's bank account records to its financial records to identify discrepancies and ensure accuracy in financial statements.

Invoices

Documents issued by a seller to a buyer that list goods or services provided and the amount due for payment.

Cash Refunds

Payments returned to customers for various reasons, such as returns or overcharges.