⦁   CASE STUDY

The Allure of Franchising

Neil Erlich knew that he wanted to be an entrepreneur when he helped start a contracting business when he was just 14 years old. During his junior year at Sonoma State University, Erlich, with help from his father, a corporate executive, began investigating franchise options that would suit his interests and skills. They honed in on the automotive service industry and reviewed the regulations of several franchises, including Total, Jiffy Lube, and Midas, before settling on Express Oil Change. Erlich was particularly impressed with the support that Express Oil Change offered its franchisees. When Erlich graduated with a business degree, his father put up $375,000 to help him purchase and set up the $1.5 million franchise operation. Erlich, who is the youngest franchisee in the Express Oil Change system, sees the franchisor’s support as one of the greatest benefits of choosing to open a franchise rather than an independent business of his own.” The franchisor is there for you," he says. "It’s very comforting. "

Like Erlich, a growing number of college graduates and twenty-something adults who are disenchanted w*+
th the prospects of a dull job in the corporate grind are looking to franchising as a promising career choice. Indeed, franchising is attracting people of all ages and backgrounds, from corporate dropouts and military veterans to retired Baby Boomers and corporate castoffs.
” People say, ’I put 20 years into a company, and because they ran into some tough times, they let me go,’” explains Ray Titus, head of the United Franchise Group.” They think, ’Do I want to put myself into a position where I may get laid off again?’ Instead, they take control of their future by running their own businesses." For many of them, franchising is the perfect fit.

Retirees who are looking for second careers also are turning to franchising as well. "They’ve got school-of-hard-knocks experience and business skills that they can apply on day one at a franchise," says Michael Shay of the International Franchise Association. Judy Divita, a retired corporate human resources manager, and her husband Charlie, a retired college professor and consultant, decided to embark on second careers as franchisees rather than stop working. After researching franchise opportunities, they opened a Subway franchise in Columbia, South Carolina, not far from where Charlie had taught at the University of South Carolina. Over the next nine years, the Divitas opened five more sandwich shops in Columbia, including one on the university campus. In addition to their built-in market of college students, they target the players on the athletic teams that come to campus to participate in more than 400 sporting events ranging from baseball and football to basketball and volleyball each year. The Divitas have won the MVP Award Winner for Innovation from Multi-Unit Franchisee magazine. Their nine outlets generate $4.5 million in annual sales, and the couple’s goal is to have 13 Subway locations within 10 years.” The franchise gives you the basic things to put you in business pretty quickly," says Charlie.” You have to take it beyond that and be creative to come up with novel ways of doing things that are particular to your company and your community.”

Franchising can be the ideal path to owning a business for people in almost any phase of professional life, whether they are retirees looking for a new direction and extra income or recent college graduates who are ready to embark on exciting careers. "Boosted by a brand name, training, advertising, and an established business plan, a franchise can ease the struggle and the risk of opening a business and still let you call some shots,” says one business writer.

⦁   QUESTIONS:
Answer the below questions based on the text above, the course material, your own experience and information search on the internet and in academic sources from the AOU e-library. (i.e. companies’ webpages, AOU e-library databases…)

⦁   These examples show people at different stages of their professional lives choosing to become business owners with the help of a franchise. What conclusions can you draw from their stories about the benefits and appeal of franchising? (300 words – 40- marks)

⦁   What are the disadvantages of investing in a franchise? (200 words – 30 marks)

⦁   Suppose that one of your friends who is about to graduate is considering purchasing a franchise. What advice would you offer him or her before signing the franchise contract? (200 words – 30 marks)

prepare the following journal entries:

1) The company sold (5) payroll service packages, covering 6 months of fully automated payroll service for $6,000 each. The regular price was $6,500 each, but the customers received a discount for paying for the service up front. Each company will receive 2 payroll runs per month. One on the 15th and one on the 30th of each month.

2) The company provided $5,600 of tax consulting services to clients on account.

3) The company ran its first payroll service for two of the companies. The other three companies were not yet ready to begin running payroll.

4) The company paid $2,100 cash for two weeks salary earned by two employees.

5) The company purchased $950 for October advertising on account.

6) The company provided $8,200 of tax services to clients and received payment.

7) The company paid a $687 electic bill for October utilities.

8) The company collected $2,000 from clients that were provided service on account on the 13th.

9) The company paid 1/2 of the bill for paper and supplies that was purchased on the 8th.

10) The company paid $2,100 cash for two weeks salary earned by two employees.

11) The company ran payroll service for all five companies that purchased service in October. 30 The company paid dividends of $700.

12) An employee and received a $300 advance for November travel for the company.

What are the relevant learnings that you have acquired that are new and can be reflected in your studies in the MBA program so far.

Please answer in 350 words and owrd format only.

THANKS

Module 06 Discussion - Schizophrenia from Patient's Point of View

Think about a client with schizophrenia that you know about from personal, work or clinical experience, or from news media or other sources. Describe the individual.

What are the positive and/or negative symptoms?

What are the person's struggles? What treatments have been tried and failed? What works?

If you were that person, what would you like to tell your nurse about yourself, your needs, and your fears?

Please provide evidence from professional sources to support your information. Include examples of your prior experience with a client who was having a problem with delusions and/or hallucinations.

Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,600 cash and $33,600 of photography equipment in the company. 2 The company paid $2,200 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $890 cash. 20 The company received $3,431 cash in photography fees earned. 31 The company paid $685 cash for August utilities.

Required: 1.Post the transactions to the T-accounts. 2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.

John is age 65 and his spouse is age 62. He can commence a pension of $2,000 per month payable in a single life form. He also has the option of $1,900 per month payable in a 50% joint & survivor form or a $250,000 one-time lump sum payment. John is qualified for Social Security and estimates that he can receive $2,200 per month at age 66. He earned a median US wage for his lifetime. John has modest lifetime savings and no pension from any other employer. Discuss the pros/cons for each of John’s pension options ($2,000 single vs $1,900 J&S vs. $250,000 lump sum). Consider how each option affects the maintenance of a standard of living, lifetime security and death benefits.

1. In a recent survey about US policy in Iraq, 62 % of the respondents said that they support US policy in Iraq. Females comprised 53% of the sample, and of the females, 46% supported US policy in Iraq. A person is selected at random.

1. What is the probability that the person we select is female and supports U.S. policy in Iraq?
2. Are the events "does not support U.S, policy in Iraq" and "female" statistically independent? Why or why not?
3. What is the probability that the person we select is male?
4. What is the probability that the person we select does not support US policy in Iraq?
5. What is the probability that the person we select is female and does not support US policy in Iraq?
6. What is the probability that the person we select is male and does support US policy in Iraq?
7. What is the probability that the person we select is male and does not support US policy in Iraq?
8. Suppose we select a supporter of US policy in Iraq, what is the probability that the person we select is female?
1. ) Suppose we select a person who does not support US policy in Iraq, what is the probability that the person is male?

Dr. Paddock is a counseling psychologist who is interested in decreasing adjustment issues in first-year college students. She is curious if having students create collages of their first few weeks of school and then mailing them home will help students feel they have integrated their new life with their old and, as a result, will help them feel less homesick. She samples a group of 100 incoming college freshmen at her university and measures how homesick they are during the first week of school. During Week 4 of school, she has them make the collage and send it home. During Week 7 of school, she measures their homesickness again. She notices a significant reduction in the amount of homesickness from the pretest to the posttest and concludes that her treatment is effective. Imagine in Dr. Paddock’s study that only 90 of the original participants completed the measure of homesickness during Week 7 (10 participants had left the university and were unavailable). What kind of threat to internal validity does this pose? How does this affect her conclusion that her treatment for homesickness worked?

The Boeing CEO recently predicted that a major US airline would go out of business before the end of the year. Please analyze the change in demand and result that is occurring in the airline industry today.

(a) Graph and explain this as if it were a perfectly competitive increasing cost industry, with the industry graph on the left and the individual firm on the right.

(b) Have the industry start in long-run equilibrium (at points A and a) and move to points B and b with a decrease in demand.

(c) Finally, have the industry go back to long-run equilibrium at points C and c.

i. At each of these points explain how and why price and output are changing in the industry and with each individual firm.

ii. How can you tell when point C is reached?

A. A company acquired a new high-tech printing press on January 1, 2016, for $90,000. At that time, the company estimated the press would have a six-year life and salvage value of $6,000. The company uses the straight-line depreciation method for all its equipment. In December 2017, a newer high-tech printing press is introduced in the market. The company controller is concerned that the value of the press may be impaired. The controller has provided you with the following data as of December 2017 and asked you to determine if there is any impairment using US GAAP or IFRS. If there is any impairment, please provide the journal entries. Additionally, as part of the 2018 budget process, the controller has asked you to calculate depreciation expense of the press using both US GAAP and IFRS. (6)

Scrap value should be reduced to $4,000.

Expected future undiscounted cash flows from operating the press are $51,000.

Discounted net present value of expected cash flows from the press is $49,000.

Fair value of the press at December 31, 2017, is $45,000 and selling costs are minimal.

B. Use the same facts as problem A above, except assume that at December 31, 2018, the controller asks what, if any, impairment reserve can be reversed using US GAAP and IFRS, because the controller concludes the press is not impaired at December 31, 2018. The controller has told you to assume the scrap value should remain $4,000.