UNDERSTANDING BUSINESS>CUSTOM<
12th Edition
ISBN: 9781265320539
Author: Nickels
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 3DCS
Summary Introduction
To discuss: Whether the franchisor offers financial assistance to prospective franchisees and also evaluates the cost of franchise versus its business potential using the risk and return tradeoff.
Introduction:
Franchise refers to an agreement between two parties where one party gives the right to use his business name for selling of product or service to other party.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
You have just graduated from the MBA program of a large university, and one of your favorite courses was “Today’s Entrepreneurs.” In fact, you enjoyed it so much you have decided you want to “be your own boss.” While you were in the master’s program, your grandfather died and left you $1 million to do with as you please. You are not an inventor, and you do not have a trade skill that you can market; however, you have decided that you would like to purchase at least one established franchise in the fast-food area, maybe two(if profitable). The problem is that you have never been one to stay with any project for too long, so you figure that your time frame is 3 years. After 3 years you will go on tosomething else.
You have narrowed your selection down to two choices: (1) Franchise L, Lisa’s Soups, Salads, & Stuff, and (2) Franchise S, Sam’s Fabulous Fried Chicken. The net cash flows shown below include the price you would receive for selling the franchise in Year 3 and the forecast…
Briefly discuss how you are going to present your Business Plan to investors.
Consider a business idea that you could imagine starting up in your local area. Explain what source or sources of funding might be available to you, approximately how much money you think you would need, and why you would choose that particular source or sources. How would you convince the potential funder or funders that they should invest in your idea?
Chapter 18 Solutions
UNDERSTANDING BUSINESS>CUSTOM<
Ch. 18.1 - Prob. 18.1AQCh. 18.2 - Prob. 1TPCh. 18.2 - Prob. 2TPCh. 18.2 - Prob. 3TPCh. 18.2 - Prob. 4TPCh. 18.3 - Prob. 18.3AQCh. 18.3 - Prob. 1MEDCh. 18.3 - Prob. 5TPCh. 18.3 - Prob. 6TPCh. 18.3 - Prob. 7TP
Ch. 18.3 - Prob. 8TPCh. 18.4 - Prob. 18.4AQCh. 18.4 - Prob. 18.4BQCh. 18.4 - Prob. 18.4CQCh. 18.4 - Prob. 9TPCh. 18.4 - Prob. 10TPCh. 18.4 - Prob. 11TPCh. 18.4 - Prob. 12TPCh. 18.5 - Prob. 18.5AQCh. 18.5 - Prob. 18.5BQCh. 18.5 - Prob. 13TPCh. 18.5 - Prob. 14TPCh. 18.5 - Prob. 15TPCh. 18.5 - Prob. 16TPCh. 18 - Prob. 1CECh. 18 - Prob. 2CECh. 18 - Prob. 3CECh. 18 - Prob. 4CECh. 18 - Prob. 1CTCh. 18 - Prob. 2CTCh. 18 - Prob. 3CTCh. 18 - Prob. 2DCSCh. 18 - Prob. 3DCSCh. 18 - Prob. 4DCSCh. 18 - Prob. 5DCSCh. 18 - Prob. 1PPTCh. 18 - Prob. 2PPTCh. 18 - Prob. 3PPTCh. 18 - Prob. 4PPTCh. 18 - Prob. 1VCCh. 18 - Prob. 2VCCh. 18 - Prob. 3VC
Knowledge Booster
Similar questions
- discuss the sources of equity financing for: 1-Venture capital firm 2-Small business investment companies 3-Public offering 4-Mergers and acquisitions 5-Angels 6-Family and friendsarrow_forwardFranchising is a license to sell anothers products or to use anothers name in business, or both. Typical examples of popular franchises include Dunkin, Super Cuts, 5 Guys, H&R Block Tax Service, Car Dealerships, even the Boston Red Sox are a franchise of Major League Baseball. Describe what you think is a better business approach, starting a business from scratch, or buying a franchise. Discuss the pros and cons of each approach.arrow_forwardHere’s what Nederlander’s chief operating officer has to say about its business model: “A show has a short lifetime. You go and sell two months out, and the tickets have no value on any day but the day of the show. So it’s a very interesting model in that sense.” How do you think the short life of the company’s products affects its financial planning?arrow_forward
- Describe three elements that can cause uncertainty within an enterprise's cash budget and provide your rationale for including each element. If you were the CFO of a company, what techniques would you use to cope with this uncertainty? How might your coping strategies differ when managing a large company (1,000+ employees) versus a significantly smaller company (100+ employees)?arrow_forwardIf an individual needs funds to finance a small business and does not want to finance the business using loans, what other sources of funding might be available? Briefly describe each potential source of funding and indicate what kind of business enterprise would be the ideal candidate for each source of funding.arrow_forwardExplain how you would use the Balance Sheet of Synlait and A2 Milk if you were thinking of buying shares in either or both companies.arrow_forward
- Use a search engine and a site such as Yahoo! Finance to learn about Blue Apron’s current Prepare a brief summary, including the company’s current financial situation. Is it still a public company, and how has its stock fared? Would you invest in it? Explain your reasoning.arrow_forwardselect a franchise that interests you. Once you have looked at the information provided, please prepare and submit a written report that covers the following: Name of franchise you selected and a brief summary of the business opportunity. Why you selected the franchise you did. What was it about this particular franchise that attracted you to it? Start-up costs. Specify what the owner (“franchisee”) will have to invest, as well as any contributions toward start-up that the franchisor will make. Potential profit or income from the business. Support that the franchisor will provide the owner (“franchisee”), such as training, supplies, materials/equipment, location, building.arrow_forward13-1 What is the specialty of a venture capital firm? Select one: a. seeking out entrepreneurs with new profitable ideas b. investing shareholders’ money in new businesses c. pooling funds from various sources and investing them d. setting up joint ventures e. borrowing money from financial institutions and lending it to new entrepreneursarrow_forward
- What factors should businesses consider when determining financing needs to determine whether they can repay the debt? Select one: a. Inventory b. Equity c. Depreciation d. Liquidityarrow_forwardYou have recently been hired to be the COO (Chief Operating Office) of a start-up company and your primary goal is to help grow the business. The company reported sales of $2 million last fiscal year. The company currently does not offer trade credits because the majority of its customers use credit cards. In a bid to expand the business, you are asked to determine whether extending trade credits is a good idea. (a) List and explain two factors that will be important for you to make this decision? Meaning, as the COO, what factors do you need to take into consideration if you are planning to start offering trade credit. (b) Given what you know, are you for or against the company offering trade credits.arrow_forwardToday corporations are required to send their stockholders an annual report. Assume that you are a prospective investor trying to decide if you should invest in a specific corporation. What type of information is contained in an annual report that would help you decide if this is the right investment for you?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Foundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage LearningFoundations of Business - Standalone book (MindTa...MarketingISBN:9781285193946Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning