In Class Activity #4 HMD 454
IF YOU ARE SUBMITTING THIS ELECTORNICALLY, THEN IT IS AN INDIVIDUAL ASSIGNMENT. IF YOU DID NOT ATTEND CLASS ON 2/21, THEN YOU MUST COMPLETE THIS ON YOUR OWN.
30 points, 6 points for each question
For the following set of questions, tou are asked to consider a restaurant company that owns food trucks, pizza restaurants that offer delivery and sit-down service, and fine dining restaurants similar to a Ruth’s Chris Steakhouse.
Imagine that the jar of coins pictured below is the revenue for this company. Quarters represent $250,000. Dimes represent 100,000. Nickels represent $50,000. Pennies represent $10,000.
What are some of the challenges of calculating the value of the company by using the coins to represent revenue? Do you think revenue represents the value of a company? Why or why not? (This is your opinion, no research necessary).
Go to https://www.accounting-degree.org/business-structure-taxes/.
Read the information about different types of business. Using this information,
which business structure do you recommend for this company and why? Please use
reasons from the link provided above.
The picture below represents the different locations of the food trucks, pizza
restaurants, and fine dining restaurants. Red represents the pizza, yellow
represents the fine dining restaurants, and blue represents food trucks. Gray
are areas where they do not have any businesses. What appears to be
their philosophy in terms of how they diversify their business?
One of the purposes of this activity is to discuss the advantages and disadvantages
of a diversified business. Please go to this link https://smallbusiness.chron.com/benefits-risks-diversification-66224.html
and read the article. Then, go to this link https://www.youtube.com/watch?v=50-d__Pn_Ac and watch the video. Use this information to answer the next two questions.
Name 3 advantages of a diversified company
Name 3 disadvantages of a diversified company.