Survey of Accounting, 9^th Edition

Chapter 3: Basic Accounting Systems: Accrual Basis

Case 3-3 Business Emphasis Assume that you and two friends are debating whether to open an automotive and service retail chain that will be called Auto-Mart. Initially, Auto-Mart will open three stores locally, but the business plan anticipates going nationwide within five years. Currently, you and your future business partners are debating whether to focus Auto-Mart on a "do-it-yourself" or "do-it-for-me" business. A do-it-yourself business emphasizes the sale of retail auto parts that customers will use themselves to repair and service their cars. A do-it-for-me business emphasizes the offering of maintenance and service for customers. 1. In groups of three or four, discuss whether to implement a do-it-yourself or do-it-for-me business emphasis. List the advantages of each emphasis, and arrive at a conclusion as to which emphasis to implement. 2. Provide examples of real-world businesses that use do-it-yourself or do-it-for-me business emphases