You set up your own business inmerchandising sector. You lease a space of 6,000 square feet toopen a luxury watch shop.
The following is minimum informationregarding the business:
- Specific sub-sector: Merchandisingsector.
-Â Â Business model: buyingand selling luxury watches.
-Â Â Investment by owner:$1,000,000
- You hire a shop manager, twoaccounting staffs who also keep the merchandise, one securityofficer, and 8 full-time sales assistants.
-Â Â Business costs/expensesshould have at least the following: cost of merchandise sold, rentexpense, salary, utilities expense, advertising expense, interestexpense, and miscellaneous expenses.
-Capital structure: must have bothInvestment by owner ($1,000,000) and Bank loan.
Set up an effective Internal ControlSystem for the business using 5 different internal controlelements.
