When do a beverage operation's on-premise selling opportunities ...

[james9437]

When do a beverage operation's on-premise selling opportunities begin?
 
  a. On the guest's way to the facility
  b. When the guest arrives at the facility
  c. When the guest enters the facility
  d. When the guest's first beverage order is placed

Question 2

What likely challenges do entrepreneurs seeking to start businesses utilizing 100 equity funding face?
 
  What will be an ideal response?

[ecabral0]

Answer to Question 1

B

Answer to Question 2

This question requires students to consider the value of leverage when starting a restaurant business as well as the advantages of shared risk.

In most cases, an investor's return on investment percentage will be increased when equity funding is combined with appropriate amounts of reasonable cost debt financing. This concept was directly addressed in the chapter. In addition to the ROI-related advantages of securing external funding is the important concept of shared risk. Few industry professionals would recommend an investor take 100 of the risk in his or her new operation if, for a reasonable price, some portion of debt funding can be secured to help share that risk.