Final answer:
The question relates to business scenarios for a car dealership owner in Dayton, focusing on the option that he is facing a decline in sales. This aligns with provided information about the automotive industry facing sales challenges and cutting ties with dealerships. Options for a business like this include borrowing or issuing stock to raise funds, with each having its pros and cons.
Step-by-step explanation:
The question at hand deals with Mr. Mills, the owner of car dealerships in Dayton, and presents multiple scenarios, such as considering expanding his business, facing a decline in sales, needing assistance with financial planning, or opening a new branch in another city. However, the scenario that aligns with the reference information provided is that he is facing a decline in sales since the information mentions that automotive companies are severing ties with dealerships due to decreased sales and manufacturing outputs.
For a small firm like Mr. Mills's that is dealing with a downturn in sales, options to raise funds are critical. This could include choices between borrowing or issuing stock. Borrowing would mean taking on debt with the obligation to pay it back with interest, but it would also allow the owner to retain full control of the business. Issuing stock would dilute ownership but could also raise significant capital without the obligation to repay.
In the context of adjusting to economic shifts as described in the provided information, businesses must be versatile and consider various strategies like expanding or reducing production, setting prices, opening or closing facilities, hiring or laying off workers, and revising their product lineup to adapt to new market realities.