Question

Tanner’s Boat Shop

Tanner owns a recreational boat business in a small town near a popular cove on a regional lake. Although the population is small, the town is bustling in the spring and fall for fishing and in the summer for recreation. Tanner's business is growing due to the influx of sportsmen and vacationers to the community. Tanner's competition thus far has been nearly nonexistent, but as the area grows he expects to encounter increasing competition.
   Tanner sells mostly fishing and skiing boats. A salesperson greets customers when they arrive on the lot and directs them to the boats. Depending on customer preference, the salesperson will either take the customer on a tour or the customer may browse and inspect the boats on his or her own.
   Since fishing and skiing boats are fairly large-ticket items, it is not unusual for customers to leave without making a purchase on the first visit. When a customer decides to make a purchase, the salesperson initiates a series of procedures to properly document the order and sale transaction. Determine the model of the selected boat and offer the customer a list of options that correspond to the particular model. The customer can purchase a boat off the lot without added features, purchase a boat off the lot with added features, or special order a boat with requested features.
   In most cases, customers do not pay cash on the date of purchase. If the customer chooses to pay with cash, a simple sales contract is prepared and the customer leaves with the boat. The majority of customers purchase on credit. Once the credit is approved by the local bank, the customer can take delivery of the boat. This involves a delivery person inspecting and cleaning the boat. The customer may pick up the trailer or have the delivery person tow it to the customer’s house.
   With an installment purchase, an installment agreement is prepared in addition to the sales contract. Tanner has arranged financing through a local bank for all installment sales. When an installment sale is made, the bank sends Tanner a lump-sum payment equal to the price of the boat. Instead of making payment to Tanner, customers pay the bank. Tanner receives a lump-sum payment for each boat regardless of whether it is a cash or credit sale. The payment is then deposited into one of Tanner’s three bank accounts.
   
Required:

a. What type of firm is this? Add the firm type to the Heading of you diagram.

b. Complete a flowchart for the processes described above. Make sure you diagram includes all formatting requirements.

Answer 1