For each of the following scenarios, a different payment agreement is described. Using what you know about
Question:
For each of the following scenarios, a different payment agreement is described. Using what you know about multiplicities, determine them in each relationship (the minimum next to Sales Order can be skipped, however – it is dependent on whether or not processes other than sales are recorded in the database).
Scenario 1:
Company A sells bookcases designed to specification. Company A allows its customers to pay in monthly installments, as occasionally the bookcases can be quite expensive. Company A generally requires its customers to pay an initial $50 upon agreement of sale, but will allow its customers who have been particularly loyal to skip the initial payment. Company A also allows their loyal customers to pay for multiple bookcase orders in the same payment, although this is certainly not required.
Scenario 2:
Company B is a travel agency. Company B requires payment upon the first consultation, and then accepts one more payment when the travel agent books the travel for the customer (usually 2-3 weeks later). Each customer payment is for only one sale.
Scenario 3:
Company C sells used (but not rare) books. Customers always pay up-front, and for one sale at a time. Installments are not accepted.
Scenario 4:
Company D sells electronics. While a down payment is allowed, it is not required. Customers can pay in a maximum of 4 weekly installments. Customers do not pay for more than one sale at a time.
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller