Question

Review the opening feature of this chapter that highlights Vlad Tenev and Baiju Bhatt and their company Robinhood. Their company plans to open a kiosk in the Ferry Building in San Francisco to sell Robinhood shirts, hats, and other merchandise. Other retail outlets and expansion plans may be in the works.

Required

2. Do you believe that a retail outlet will need to add controls to the business as it expands? Explain.

Short answer

Answer

Yes, a retail outlet needs to add controls to the business as it expands.

Step-by-step solution

Step-by-Step SolutionStep 1: Introduction to topic-

Retail outlets: Retail outlets permit customers to see what they are purchasing up close. Instead of online stores, they provide instant delight because the customer walks away with their purchases right away.

Explanation-

As the business grows, controls will become more significant. The outlet will have more employees and will have to designate more liabilities. Healthy controls will be important to ensure that the business isn't a casualty of fraud or employee errors.