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IFSM 300 Final Assessment ExamNOTE:As for all work in this class, the final exam must be original work developed by thestudent solely for use in this class and must conform to UMUC’s academic policies.Instructions:Use the Case Study presented here to answer the questions below.Your answers should be longenough to answer each question fully and completely and typed below the individual question in thisdocument.Follow the instructions in the questions to determine the appropriate length of yourresponses.Your answers should demonstrate an understanding of the concept(s), should applycritical thinking, and should provide analysis of the Case Study in light of the concepts(s).Youshould not just re-iterate what has been presented in class, but integrate the information and relate itto the Case Study.Proper APA style must be used for any citations and references that you use.Your exam will be graded on the completeness and accuracy of your responses and whether youhave appropriately tied your responses to the Case Study.Responses that do not mention the CaseStudy will receive very few points, if any.Each question is worth 10 points.Virginia BikesCase StudyIn 1985 Bill Thomas took $6,000 of his savings, borrowed another $4,000 from his best friend, andopened a bike rental business in Vienna, VA.The rental shop is adjacent to the Washington & OldDominion Trail (W&OD) that goes from Purcellville to Old Town Alexandria (45 miles), connects tothe Mt Vernon Trail (18 miles) and ends at George Washington’s Mt Vernon Estate.Bill, bought 10bikes for his first store. The location has parking, and is near the historic Vienna Inn and a number offood and drink establishments.He has since opened stores in Old Town Alexandria and Reston, VA,where he sells, rents and repairs bicycles.The Vienna store is now Bill’s anchor store, and at 5,000 square feet, it is three to five times largerthan his other stores.Bill estimates he sells around 3,000 new bikes a year. Because of the highuse of the W&OD trail, especially on weekends, he also provides tune up and maintenance servicesat all of his stores for the many riders from up and down the trail.In 2012, Bill leased a store in the heart of D.C., near the Smithsonian Museums and other touristattractions.He uses this store to rent bikes to tourists and residents of the city, and does somerepairs to his rental bicycle inventory in the back of the shop.Although he has always made money, or he would not be in business, Bill has seen a decline inbikes sales of about 20 percent since 2008.He attributes this to the downturn in the economy andthe growth in Internet sales.However, his rental, tune up and repair business has increaseddramatically.Over the past few years, he realized that he must be more aware of expenses anddecrease them wherever practical in order to preserve profits.Version 31

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