Answer to Question 1
C
Answer to Question 2
Student answers for this question will likely vary but should focus on a simple reality, investors seek adequate returns on their investments. If a financing source involves a bank or other financial institution, this return will take the form of guaranteed loan principal and interest repayment. If the financing is obtained from an individual investor adequate investment returns (ROI) will be the prime concern. In both cases, however, those who provide funding to a new food service operation will be extremely interested in the potential for the financial success of the operation.