Derek dreaming of opening his own restaurant but has no idea about how to run let alone where to begin
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- Bob owns his own fresh food company. He currently operates only online and is looking to open a store. He does not know how he should obtain finance for the expansion. Using your knowledge of sources of finance, what source of finance would be the best option for Bob and why?If your friend asks you to invest into his two year old restaurant as a partner, which is expanding and needs money to open a second restaurant in another location, will you agree? What factors will you consider in making the decision? Will your answer be different if he asks you to personally loan him the money that he will in turn invest into the business? Why or why not?In his email William outlined an idea to set up a restaurant business. He has been told by a friend that it is best for his wife to run the restaurant as a separate business for Value Added Tax purposes. Required: Briefly provide William with an outline of the VAT consequences of setting up the restaurant business in the manner he describes; particularly note any disadvantages or adverse consequences which he should be aware of. (4%)
- Fatma has always loved to cook and is interested in starting a catering business. Being aware of the failure rate of new businesses, she is considering buying an existing catering business, Tasty Caterers that is up for sale. The Tasty Caterers claim that the business is highly profitable, but Fatma has her doubts. She wonders why the owners of Tasty Caterers would be so interested in selling the business if it is such a money-maker. Furthermore, the price that they are asking seems high to Fatma. Without any formal training in accounting, Fatma asks a friend, Rawan, for advice. Q) If Fatma decides to purchase Tasty Caterers, what plans do you think she must have in place? Give specific examples of each of the three types of planning with regard to Fatma's business.Fatma has always loved to cook and is interested in starting a catering business. Being aware of the failure rate of new businesses, she is considering buying an existing catering business, Tasty Caterers that is up for sale. The Tasty Caterers claim that the business is highly profitable, but Fatma has her doubts. She wonders why the owners of Tasty Caterers would be so interested in selling the business if it is such a money-maker. Furthermore, the price that they are asking seems high to Fatma. Without any formal training in accounting, Fatma asks a friend, Rawan, for advice. Q) What suggestion do you think Rawan would have given Fatma, so that she can clarify her doubts regarding the financial standing of the company Tasty Caterers?Mrs. Teresa is interested in starting a farming business. She is considering venturing into eitherstrawberry farming or onion farming. She has consulted a financial advisor who established probablereturns for these two types of farming businesses and the probability of occurring depending on differentweather conditions. Required:Using all the appropriate measures advice Mrs. Teresa on the best farming business to venture in. Givea well detailed justification for your answer.
- Jonatan Jelen is considering opening a bicycle shop in New York City. Jonatan enjoys biking, but this is to be a business endeavor from which he expects to make a living. He can open a small shop, a large shop, or no shop at all. Because there will be a 5-year lease on the building that Jonatan is thinking about using, he wants to make sure he makes the correct decision. Jonatan is also thinking about hiring his old marketing professor to conduct a marketing research study to see if there is a market for his services. The results of such a study could be either favorable or unfavorable. Develop a decision tree for Jonatan.What factors should the Homs consider before they make their decision as whether to open the restaurant?Ed Perez has always wanted to run his own restaurant. He worked part-time in the food service business during high school and college and has worked for a large restaurant chain since graduating from college four years ago. He's now ready to open a franchised family style restaurant. However, to get started, a large investment is required. Ed has saved some money, but will also have to secure a substantial loan. Fortunately, Ed's old college roommate, Joe Dixon, is now a loan officer with the local bank. Besides being a good friend, Joe knows that Ed is a stable, hard-working businessman and an excellent credit risk. Ed is now meeting with Joe to apply for the loan. After exchanging pleasantries, Joe asks to see Ed's business plan. In response, Ed tells him all about the idea and shows him the written information from the franchisor, which Joe glances at briefly. Joe listens politely, leans back in his chair, and says, "Ed, I've known you for years. I'm sure this is a great…
- Mrs. Teresa is interested in starting a farming business. She is considering venturing into eitherstrawberry farming or onion farming. She has consulted a financial advisor who established probablereturns for these two types of farming businesses and the probability of occurring depending on differentweather conditions. This information is as shown below: (image) Required:Using all the appropriate measures advice Mrs. Teresa on the best farming business to venture in. Givea well detailed justification for your answerMaria and Sylvia always wanted to start their own restaurant business and be an entrepreneur. as entrepreneurs they must decide whether the business should operate as a general partnership or as a limited partnership. Which is the better choiceKaren and Yanique are opening a jewellery store with no competition in the area from which they intend to operate their business. Their fundamental decision is how to organize the business. They anticipate super-profits the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow and as such, they feel the corporate form of operation will be best for the long term. They seek your advice. Requirements: State three (3) of the main advantage they gain by selecting a corporate form of business now. Would you recommend they initially issue preferred or common stock? Why? If the corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called? Can this amount be treated as a gain, income, or profit for the corporation? Please give the reason for your answer.