Question

Read the final "Running a Business" segment, "Part 6", entitled "Graeter's Recipe for Growth: New Systems, Social Media, and Financing" on pages 494-495 in your text, and answer the following questions:

1. Graeter’s uses information to track cash, sales revenue, and expenses on a daily basis. How does this type of accounting system facilitate effective decision making?

2. What kinds of questions do you think Cincinnati officials asked Graeter’s owners before agreeing to loan the company $10 million? Why would Graeter’s go with this financing arrangement rather than borrowing from a bank to pay for the Bond Hill factory?

Answer 1