To determine: The reason that bank financing is unavailable for T&E startup.
Case summary: T&E is a hamburger restaurant in Chicago area started in 2009 at the time of great recession. They financed its operations by themselves and with the help of third partner VN. Both the partners have work experience in McD as executives. Recognizing the need of finance function, they hired Brian as a CFO who is a former executive of McD.
According to CFO cash flow is an important element in starting up a restaurant because of the known costs such as rent, payroll, inventory, taxes and utilities as these are recurring and relative costs incurred on weekly or monthly basis. T&E uses a technological inventory management and
CFO explains that the restaurant has net 14 credit terms with its food vendors. This means that the invoice is to be paid within 14 days after the receipt of the goods. It is a form of financing which allows company to turn the inventory once or twice during the 14 day period. According to Eddie, the goal is to increase the stores by 10 and then look at franchising the operation.
Characters in the case: The characters that in the case are T&E, VN and BG.
Adequate information: According to Eddie, the goal is to increase the number of stores by 10 and then look at franchising the operation. When considering the location where to open a new operation. He indicates that the careful consideration is to give demographics of area like average income of people, age and population.
Want to see the full answer?
Check out a sample textbook solutionChapter 18 Solutions
UNDERSTANDING BUSINESS LL W/CONNECT
- Do fast answer of this general accounting questionarrow_forwardInvestigate how AI technologies, such as generative adversarial networks (GANs), are used to create deep fakes. Discuss the technical processes involved and provide examples of notable deep fakes. Identify and analyze at least two case studies where deep fakes have had a significant impact. These could be in areas such as politics, entertainment, or social media. Discuss the potential social impacts of deep fakes, including their influence on public trust and the spread of fake news.arrow_forwardMostlarge businesses rely on many complex processes to keep them running smoothly. Two large areas that impact large areas of business and IT are ERP and CRM. Respond to the following questions: • How do ERP and CRM help a company? What are the drawbacks to setting up those different types of systems in a business? What direct effects do these systems have on customers?arrow_forward
- Please original work Who owns a customer's information in United States and Europe? Who should profit from it? How would that work Please cite in text reference and add weblinksarrow_forwardWhat significant role context plays in social interactionsarrow_forwardThe losses for the pump in the previous question are estimated to be 15% of the relative dynamic head at inlet to the impeller and 45% of the dynamic head at inlet to the diffuser. Calculate the head delivered and the efficiency of the pump. Answers: 4.12m;75.4%arrow_forward
- Describe the difference between coaching and mentoring. Which would you work best in an organization experiencing systemic organizational change? Explain choice.arrow_forwardMany students are surprised to learn that employees may be fired for any reason not expressly prohibited by the law. As we have seen, the law requires employers to accommodate a fairly wide range of employee behaviors and conditions. However, there are still classes of employees and behaviors that are not protected by federal law, e.g., sexual orientation or political affiliation. Should the law be expanded to cover additional classes and behaviors? Why or why not?arrow_forwardSaturated moist air at 15 °C and standard atmos- pheric pressure undergoes a process which has a sensible-heat ratio of SHR 0.70. After the process, the dry-bulb temperature is 40 °C. By the psychrometric chart, determine the following at the end of the process: (a) humidity ratio, (b) dew-point temperature, (c) relative humidity, and (d) wet-bulb temperature.arrow_forward
- 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