ASSIGNMENT 08
C01J Introduction to Business
Directions: Be sure to save an electronic copy of your answer before
submitting it to Ashworth College for grading. Unless otherwise stated,
answer in complete sentences, and be sure to use correct English, spelling
and grammar. Sources must be cited in APA format. Your response should be
four (4) double-spaced pages; refer to the "Assignment Format" page located
on the Course Home page for specific format requirements.
Part A
1. The text says that Toyota has focused on quality as its operations
capability. Describe two (2) ways that Toyota’s operations might have
changed if it had focused on low cost instead of quality.
2. FedEx and the U.S. Postal Service compete for many of the same
customers. Describe two (2) ways that their strategies for attracting
customers are different.
Part B
Mary Ann has always loved to cook and is interested in starting a catering
business. Being aware of the failure rate of new businesses, she is
considering buying an existing catering business that is up for sale. The
current owners claim that the business is highly profitable, but Mary Ann has
her doubts. She wonders why the owners would be so interested in selling
the business if it is such a money maker. Furthermore, the price that they are
asking seems high to Mary Ann. Without any formal training in accounting,
Mary Ann asks a friend, Rolanda, for advice.
1. Rolanda suggests that Mary Ann may benefit from the services of a
noncertified public accountant. Describe two (2) types of services that
could be provided.
2. The auditor’s report has come back and Mary Ann is reviewing the
financial statements. The current balance sheet shows that the
business has more liabilities than assets. Why would this explain the
need to sell the business? Provide two (2) supporting facts.
3. Rolanda suggests that, even with the negative owners’ equity, this
business might still be worth buying. Describe one (1) other indicator
within the auditor’s report that they should consider for this decision.
Grading Rubric
Please refer to the rubric on the following page for the grading criteria for
this assignment.
