1. Read the scenarios below to decide whether or not bankruptcy would be appropriate for the business. Be sure to explain your answer.
a. Sara owns Sara's Sofas, a furniture store in a small city. She has 10 employees who work on a 50
percent commission, and rents the store front for $2,000 per month. All utilities, such as electric and
heat, are included in the monthly rent. Sara's salary is 60 percent of the store's profits. At the end of her
fiscal year, Sara discovered that two of the manufacturers have not been paid for shipments of furniture
to her store. The budget does not include the shipments, and she is unable to pay them. She decides to
declare bankruptcy so the debts will be forgiven. (2 points)

Northern lights electronics just completed plans to distribute its new tablet. the product has several unique features that differentiate it from competitor products. the marketing team plans to begin a roll-out with to only one traditional retailer for the first two months. this strategy will give consumers the perception of the product’s stand-out personality and increase demand. marketing will proceed with for the next four months, where it plans to distribute to three other retailers, as well. for the last six months of the year, it will initiate distribution agreements with discount retailers and online retailers, and any other electronics store that wants to carry it. the marketing team is confident that the tablet will cycle through the first three stages of its product life cycle quickly. as the tablet reaches maturity during the second half of its first year in the market, it is good strategy to proceed with as described above. intensive distribution; selective distribution; exclusive distribution exclusive distribution; selective distribution; intensive distribution tertiary level distribution; secondary level distribution; mono-level distribution mono-level distribution; secondary level distribution; tertiary level distribution