1 What is the role of the franchiser when a franchise is purchased? 2. List three advantages of buying an existing business.
3. Imagine that you want to open a doggy-daycare business. Give an example of a human risk, a
natural risk, and an economic risk associated with opening this business.
4. Using your answers from the previous question, give one way to manage or lessen the risk you
identified.
5
Explain why starting a business from scratch is more difficult than purchasing a franchise, buying
an existing business, or joining a family business.
There is a young entrepreneur who is looking for a loan to buy her aunt and uncle's dry-cleaning
business. The potential entrepreneur is only twenty-seven but has worked hard and saved 20
percent of the cost of the business. The business has been quite successful and established for
the past 17 years. Because the owners want to retire, they need to sell the business in its entirety
at market value. There are two other family members that work at the business; however, one is

Afreezer manufacturer might purchase sheets of steel, wiring, shelving, and so forth, as part of its final product. this is an example of what sub-classification of business market?

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

Consider an economy where government expenditures are 10 and total tax revenues are 10. the supply of labor is fixed at 125 and the supply of capital is fixed at 8. the economy is described by the following equations. y k to the power of 1 divided by 3 end exponent l to the power of 2 divided by 3 end exponent c 2.5 + 0.75 ( y - t ) i 10 - 0.5 r the level of private savings is