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PROBLEMS 17

(c) Inventory (1,N) - (O,N) Vendor
(d) Inventory (1,N) - (1,1) Vendor
1.9 Which one of the following statements about the REA data model is true?
(a) Each resource is generally linked to at least two agents.
(b) Each event is generally linked to at least three agents.
(c) Each event is generally linked to at least one resource.
(d) Each agent is generally linked to at least two events.

PROBLEMS

1.1 Cherokee Art and Antique Store
Develop an REA diagram for Cherokee Art and Antique Store's expenditure cycle to model its pur-
chasing and payment events related to artists/sellers given the following new fact that Jesse likes to
collect information on potential artists/sellers for future business. Other situations remain the same.
1.2 Cherokee Art and Antique Store
Develop an REA diagram for Cherokee Art and Antique Store's acquisition activities to model its
expenditures related to the purchasing of store furniture, office equipment, and other fixed assets
only. Assume that Jesse always makes installment payments for asset acquisition. He writes a check
for the payment of each asset even if several assets have been purchased from the same vendor, since
this way is easier for him to track the unpaid balance of each item. Occasionally, a vendor does not
require a down payment.
1.3 Cherokee Art and Antique Store
Develop an REA diagram for Cherokee Art and Antique Store's expenditure cycle to model its pur-
chasing and payment events in general (not to include the acquisition event in Problem 1.2). That is, not
only buying art pieces and paying the artists, Cherokee also buys office supplies, orders services for
maintenance, and pays for other operating expenses such as water and utilities, telephone, and cleaning.
1.4 Velvet Lounge
Background: Velvet Lounge is a premier upscale nightclub located in the heart of San Francisco. It has
two levels, which are fully stocked with two bars on each level. Velvet Lounge is richly decorated with
velvet furniture, mahogany walls, and giant chandeliers to create a very luxurious setting.
Velvet Lounge may be entirely rented for hosting a private event. Most of the time, the club
is rented out for people to host a theme party or an after-patty for concerts or other special events.
People who tend to rent the entire club are mostly promoters or radio stations. Admission fees are to
be determined by the host of the event and all of the admission fees go to the host. This gives the
promoters an incentive to bring in a large crowd.
Velvet Lounge has private VIP rooms that may be rented for birthday parties and special
occasions on a smaller scale. Depending on the size of the room that is rented, the customer will be
given a certain number of VIP guest passes. ;./
Internet Use: Velvet Lounge's official Web site enables customers to see upcoming events at the
club. The Web site is used to provide background information about the club to the public. General
information such as location and management contact information is posted on the site. Pictures of
the club are also posted on the site.
Velvet Lounge's Web site allows customers to subscribe to its mailing list and to be notified
of special events. This allows Velvet Lounge to keep in touch with its customer base. The mailing
list is also a great tool for targeted promotions.
Detailed information about VIP room rentals is available from the Web site. Customers may
submit a request to reserve a VIP room or the entire club through the Internet with their contact