Wk3 Johnson chapquestions
Week 3
Ch. 16 Q. 1 - In drawing up a sales budget for a casual Italian restaurant, what percentage of weekly sales should be forecasted for Friday and Saturday evenings? 43% should be forecast for those 2 evenings as they are the busiest nights and you should have a higher sales volume then. Q. 4 - Aside from its value in planning, why is it essential to do a budget forecast of sales, costs, and profit? It is important for one thing so you can better allocate fixed and variable costs to predict a profit or loss figure. Q. 8 - The procedure in seeking a loan from the Small Business Administration is fairly elaborate. What is the usual sequence for this process? 1. Applicant requests list of participating banks in the area from the SBA. 2. Applicant completes the SBA’s 6-8 page loan app and submits to lender for review. 3. Upon completion of loan request, lending bank send app to local SBA for approval. 4. Is loan is approved by SBA, borrower is requested to visit bank to sign loan docs.
Ch. 17 Q. 2 - What are some dangers of operating a restaurant as a partnership? Each partner can create debts for the partnership. Partnerships can be dissolved by death, disagreements, sickness or divorce (if partnership is between husband and wife). When there are loses, each partner tends to blame the other for the loss. Q. 3 - If you wanted to operate your restaurant as a corporation but be taxed as an individual, how could you arrange this? Setting up as an S corp can be a way to be taxed as an individual. This is useful in family owned establishments. Gifts of the restaurants stock can be made to dependents and are taxed on their income bracket. Q. 9 - As a limited partner in a restaurant, what part do you have in making management and financial decisions? Limited partners have no say in the operation, the managing partners have all the say.
Ch. 16 Q. 1 - In drawing up a sales budget for a casual Italian restaurant, what percentage of weekly sales should be forecasted for Friday and Saturday evenings? 43% should be forecast for those 2 evenings as they are the busiest nights and you should have a higher sales volume then. Q. 4 - Aside from its value in planning, why is it essential to do a budget forecast of sales, costs, and profit? It is important for one thing so you can better allocate fixed and variable costs to predict a profit or loss figure. Q. 8 - The procedure in seeking a loan from the Small Business Administration is fairly elaborate. What is the usual sequence for this process? 1. Applicant requests list of participating banks in the area from the SBA. 2. Applicant completes the SBA’s 6-8 page loan app and submits to lender for review. 3. Upon completion of loan request, lending bank send app to local SBA for approval. 4. Is loan is approved by SBA, borrower is requested to visit bank to sign loan docs.
Ch. 17 Q. 2 - What are some dangers of operating a restaurant as a partnership? Each partner can create debts for the partnership. Partnerships can be dissolved by death, disagreements, sickness or divorce (if partnership is between husband and wife). When there are loses, each partner tends to blame the other for the loss. Q. 3 - If you wanted to operate your restaurant as a corporation but be taxed as an individual, how could you arrange this? Setting up as an S corp can be a way to be taxed as an individual. This is useful in family owned establishments. Gifts of the restaurants stock can be made to dependents and are taxed on their income bracket. Q. 9 - As a limited partner in a restaurant, what part do you have in making management and financial decisions? Limited partners have no say in the operation, the managing partners have all the say.