Author Question: Raina and James run a small running apparel company that is gaining steam with customers. They ... (Read 103 times)

Lisaclaire · **on:** Jul 14, 2018

Raina and James run a small running apparel company that is gaining steam with customers. They currently sell their items at a few specialty running stores in town and at two regional locations of Dunahm's Sports, a large sporting goods chain. They have an opportunity to get their products sold in other Dunham's locations, but they've encountered a few stock-outs. They've been told by Dunham's that they won't secure a larger distribution deal until they've sorted out their stock-out problem. Where should Raina and James focus their attention?
A) They should look at a new option for transportation as their current use of trucks does not get the items to the retail stores quickly enough.
B) They should focus on their warehousing in order to efficiently distribute goods to their retail customers.
C) They should implement a new inventory management system to maintain low levels of inventory but also minimize running out.
D) They should look at maximizing their profits by producing the running apparel overseas, where labor costs are lower.
E) They should focus on their pricing objectives in order to increase sales and cash flow.

Question 2

Tienlon and her friend Lou would like to open a dog-walking business in Chicago. Lou will handle acquiring new clients, billing, and advertising, and Tienlon will walk the dogs. They agree Tienlon will earn 60 of the profits the business earns. They don't plan on needing any investment into the company and prefer to make all the decisions regarding the business themselves. They are concerned about liability in case one of the dogs happens to get injured while in their care. Which type of business ownership best suits Tienlon and Lou?
A) LLC
B) Corporation
C) Partnership
D) S corporation
E) Sole proprietorship