10:23 E Q AA RX ... . 1: island display for bulk cheeses . 2, 3: island display for soft drinks 4: area for shopping carts FIGURE 1 Present Store Layout-Derocher's Market Office A 'Wine cellar" Entrance Checkouts 1 Lavatory 4 2 Glass storefront Fruit display D 3 storage Meat Vegetable-fruit display Dairy Refrigerated cheese-meat display The store employs eight full-time people. These consist of six clerks and two assistant managers-one manager for meat and dairy and the other for grocery, produce, and frozen foods. During the first four weeks of operation, several things were determined: 1. There are far too many employees for the type of work needed. 2. There is far too much congestion of shoppers at certain in-store locations. 3. There is a build-up of customers at the check-out stations. 4. Many customers have inquired as to where to find various food items. 5. Several of Derocher's employees have indicated that some changes need to be made to the interior layout of the store. After receiving this input. Derocher is not sure what to do. The present layout seems unsatisfactory, but he does not want to spend a lot of money making changes. Questions 1. Based on Figure 1 and the observations of the first four weeks, what are the weaknesses of the present store layout? 2. Develop a layout that might solve these problems HOME SMART HARDWARE STORE Home Smart is a small hardware store located in Meyburn, Saskatchewan, an agricultural community with a popula- tion of about 9000. Merchandise stocked includes automotive and farm supplies, furniture and appliances, sporting goods, plumbing and electrical supplies, and giftware. 428 PART 3 MANAGING THE SMALL BUSINESS 428 / 531 >10:23 E Q AA R ... 5. What is the tax liability for the following proprietorship's taxable incomes? a. $5496 b. $10,942 c. $34,999 d. $63,000 6. Determine the federal tax liability for the following companies: a. A Canadian-controlled incorporated company with $25,000 taxable income b. A Canadian-controlled incorporated company with $25,000 taxable income that qualifies for a small busi- ness deduction c. Same as part (b), but the business qualifies for the 5 percent manufacturing credit d. A proprietorship with taxable income of $25,000 7. Ask a consultant or an accountant when a business should incorporate. What are the important considerations? 8. Start the process of creating an ideal board of advisors for your potential business. Create a list of roles with the requisite skills and knowledge you will be seeking. If you want to take this question further, create proce- dures for managing the board as outlined in the chapter. CASES FOR PART 3 Derocher's Market Taylor Construction Company Home Smart Hardware Store The Barrow Bracket Martha's Designs Threadz Sadie's Country n' Western Store Garner Men's Wear Dale's Sport Pursuit Boomerang Bouncers Entertainment Susie's Fashions DEROCHER'S MARKET Derocher's Market opened a new store in Quebec City in January 2019. Although the firm has been in business for three generations, the neighbourhood in which the original store stood had become shabby, and many of its loyal clientele had moved to the suburbs. The present owner, Claude Derocher, decided to follow the population move. The new store is located next to a several other small independent businesses near more than 70 four-storey apartment buildings that house more than 400 families. Many more apartment buildings are under construction, as well as three- and four-bedroom single-family homes in several nearby housing developments. The nearest com- petition is located approximately three kilometres northeast of the present shopping centre. In preparation for the grand opening, Claude Derocher purchased many varieties of canned juices, fruits, and vegetables. In addition, he carries a number of varieties and lines of cheeses, frozen foods, other dairy products, fruits, vegetables, and meats. To display and sell all the stock, it is necessary to use valuable aisle space as islands for various bulk cheeses, canned fruits, and dry groceries, such as potato chips, pretzels, and the like. The store size is 17 by 27 metres. The store layout, shown in Figure 1, is as follows: . A: display area for crackers, breads, and cookies . B: refrigerated area for frozen foods, frozen desserts, and packaged cheeses . C: display area for olives, pickles, other condiments, canned fruit, and fruit juices . D: display area for canned vegetables, canned fish, breakfast cereals, and dried fruits CHAPTER 12 Management Help: Mentors, Boards of Advisors or Directors, and Tax Assistance 427 427 / 531 >