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Finance and Accounting - Term Paper Example
Author : lueilwitzcreola
Finance & Accounting
Pages 16 (4016 words)
Mr. George is planning to set up a business to import chocolate from Switzerland and sell it in the USA through internet and credit cards. The business proposal for retailing of fine Swiss chocolates given by George has been analyzed based on the information provided. …
SwissChoc SA (owned by a family friend) is prepared to give him exclusive rights to sell their products in the USA for a ten year period in return for an upfront payment. “The distributor is an independent selling agent who has a contract to sell the products of a manufacturer. The distributor cannot represent him- or herself as the producer but may display the producer's trade name in signage and in the sales situation” (US Legal, 2012). Since the information provided is not adequate, we have to make certain reasonable assumptions while working out the statements required in this respect. However, the lack of details in these areas is not materially going to affect the reliability of the statements. The assumptions made in this connection have been stated in the report to enable the user to bring in additional details, if it is felt necessary to have a more detailed report on the project. There is uncertainty in the price front as the details given with regard to prices at which the product could be sold are not specific. Instead George has given a price range with minimum and maximum prices for the products to be marketed. There are difficulties in predicting the correct prices due to interplay of the brands, price levels (cheap and costly with various price levels in between), market segments, tastes and flavors. ...