Let’s look at Target, one of the largest retailers found throughout the United States. Think…

Let’s look at Target, one of the largest retailers found throughout the United States. Think about Target, all its stakeholders, what products it sells, and how and where it sells its products. Think about all the employees that work for Target and the assets that Target needs. Think about the business of Target. Now go to Target’s Web site at www.target.com. Next, scroll to the bottom of the page and look for the heading “about Target” and click on “company information.” There you’ll find information about Target’s business. Explore the menu options available in “Our Company” and in “Investors” in order to find the answers to these questions:

1. What is the mission statement of the business? What does it say about value?

2. What type of business is Target? Is it a service company, a merchandise company, or a manufacturing company?

3. What products does Target sell? Where does it get the products it sells?

4. Who are Target’s customers?

5. Now look at Target’s stock price. At the beginning of February 2013 you would pay approximately $62 to own one share of Target’s stock. When you add all the shares of stock together, Target is valued at approximately $40 billion. That’s a considerable amount of money. Do you think Target is worth $40 billion? What role do you think accounting plays in helping owners (stockholders) decide the value of Target?

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