...OWNING -VS- RENTING Principles of Macroeconomics Professor John Weber October 17, 2013 Low mortgage rates and rising apartment rentals all over the country has led some people to dive into homeownership more quickly than originally planned. There are many that are still waiting for the housing market to recover, even with incentives to buy. All rely on the personal financial situation in making this decision. Renting vs. Owning both presents a number of pros and cons: Renting: Pros Cons Flexibilty and free Can’t build equity Terms of lease Restrictions No maintenance and upkeep Approval by owner to paint or remodel Ownership: Pros Cons Build Equity Pay for Maintenance Tax Breaks Illiquid Asset Stability of Mortgage Property Taxes Investment Lose of Value Location Use of your savings for down payment Remodeling as you please Owners insurance is Mandatory However purchasing property can be for many reasons, such as, an investment for flipping, to fix up and resale or to occupy. Maintenance of up keep, roof, windows, snow removal, and credit score is all things to consider for purchasing a home. When purchasing there are many different options row home, single, development all are investments. There are many financial parts that play into the option of purchasing and renting. When buying you must be very aware of purchase costs which are the down payment and closing costs. Yearly...
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...better quality meal. Knowing the business side behind the restaurant will also show why people want to start their restaurant and why it is still here today. Today you will see why Team C, prefers Subway for its healthier option of food and why owning a Subway is more advantageous than owning Cousin Subs. Subway is one of the top sandwich shops to eat at. It is healthier than other sub shops and it is also cheaper to own a Subway franchise than other sub shops. There are many pros and cons for Subway. It has great tasting food and a great option for healthier subs. Another pro for Subway is that customers can make their own sub, and see how the employee is making it. Some cons for Subway are some sandwiches do not have enough meat. Since the meat and veggies are out in the open this is another con, people believe it is not as sanitary as other sub shops. There are also pros and cons with owning a Subway. It is cheaper to get into a franchise than other sub shops. To get a Subway franchise started the fee is 15,000 dollars. After that it can cost anywhere from 100,000 dollars to 250,000 dollars to get the franchise open and ready to serve customers ("Buying a Fast Food Franchise", 2014). Subway is very popular, they are seen on TV more than other sub shops, and have a lot of famous people including athletes that are endorsed by Subway. Having famous people involved with this company will also bring in more customers. The cons about owning a subway is a weekly payment called...
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...To: CEO and Board of Directors From: Meshal Alameeri, Senior Manager Re: Suggested Strategy for Benetton 1) Introduction Recently, there has been much debate within Benetton about the future direction of the company. This debate has centered on the question of whether to embrace a strategy to manage and own its stores while supporting licensees in developed markets; or to continue using the traditional Benetton strategy of developing a large network of licensees and partnering with them to develop a chain of small firms. 2) Potential Growth Strategies The company needs to redefine itself in the same way the competition did, by owning, managing and supporting their stores and licensees respectively, such as The Gap and ZARA. Both of these strategies have their pros and cons, but there is a strong case to be made for each. The first approach is to own and manage stores in order to support struggling licensees in developed markets. On the other hand, the company owes all of its current success to the operational infrastructure it has built using its original strategy: no support to licensees and relationships with suppliers it has developed over the past several decades. Essentially, the company is faced with the question of whether to take a big risk in transforming its new strategy approach model, which would give more support to struggling licensees. The new transformation would certainly have its share of risks, but the belief is that the company faces as much...
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...provided to target markets by an organization. An offeri ng consists of a tangible product or service plus related services.” (New Business Ideas and Concepts, 2012) Dr. Pepper/7 Up is a division of Cadbury Schweppes PLC. Cadbury Schwepees PLC is the third largest soft drink company and fourth largest confectionary company. They sell all over the world. Dr Pepper is North America’s largest non- cola soft drink company. Two of the brands are consistently ranked in the top ten sodas based upon market share. (Kerin and Peterson, 2010) Dr. Pepper/7 Up has been a far off number three for many years now. Pepsi and Coke have always dominated the market and sales figures show they are not slowing down. Recently declining sales of Squirt can signify an ongoing issue that needs to be evaluated at the top level. They need to determine if they are going to market correctly in this category. They need to ask themselves if they are advertising to the right demographic, is the packaging appealing to the demographic they want to reach and so on. 2. The competitive situation for carbonated beverages is strong. “Three companies command 90% of the sales in the United States.” Coca Cola is a strong leader, followed by Pepsi and then Dr. Pepper/Seven Up. The top ten brands are made up from these three leaders; with Coca Cola owning five of the top ten and Dr. Pepper owning two. Squirt falls into the citrus category which is lead by Mt. Dew. Other brands in this category include Fresca, Mello Yello...
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...SITUATIONAL AUDIT Industry Analysis: the Telecommunication Industry Market Structure Tellme’s Customers a) Consumers * Older consumers * not the technically savvy early adopters, nor the technically illiterate b) Network Services * Competitor Analysis a) Voice portals | Founded | Launched | Key Investors | Audiopoint | June 1999 | December 1999 | NextGenCapital, LLC | BeVocal | March 1999 | June 2000 | Mayfield Fud, US Venture, Technology Crossover Ventures, Trans-Cosmos USA, Angels | HeyAnita | August 1999 | October 2000 | SOFTBANK Capital | Quack.com | November 1998 | April 2000 | Acquired by AOL, Prior to AOL, investors included Jefferson Partners, Bid.com, ELab Technology Ventures | Talk2 | October 1998 | Not yet | HP, Smart Technology Ventures, SunAmerica Investments, homas Weisel Partners, Oracle Corporation, BlueVector | TelSurf | January 1999 | February 2000 | Angel-backed | b) Voice ASPs Fell into 7 categories based on their focus: * Transactional ASP * Contact-Centric ASP * Incumbent/Contact Centric * Carrier/VRU * Carrier ASP * Multi-Modal/Incumbent * Munlti-Modal/ASP c) Speech Recognition Software Providers All competitors in this group offered a complete set of products for firms. * Nuance * SpeechWorks * Lernout & Hauspie d) WAP Services Wireless Application Protocol is an open technology standard developed by Phone.com, Motorola, Ericsson and Nokia. WAP...
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...Dogs versus Cats: Which Makes a Better Pet? Vicki Fournier COM/155 November 13, 2011 Genevieve Fraser Dogs vs. Cats: Which Makes a Better Pet? There is no right or wrong answer to this question. Some people say they are dog people, some people say they are cat people, and some people say they are both. Beyond the pros and cons, the decision to what makes a better pet often comes down to a person’s lifestyle, expectations, or in certain circumstances a person’s needs. Remember “Beauty is in the eye of the beholder.” (Hungerford, 1878) Both dogs and cats are common domesticated pets. Dogs have been domesticated for 14,000 years and cats for 7,000 (Cats vs Dogs, n.d.). It appears in my research that most people that were asked this question “which makes a better pet, a dog or a cat” replied with the answer “dogs,” but if dogs are the better pet then why is it that there are 96.3 million homes that own cats and only 77.5 million homes that own dogs. The scientists at Oxford University released a study that claims dogs are smarter than cats and The London Daily Telegraph has reported dogs have been named as more social animals and therefore have bigger brains than the “alone loving cat” (Gatton Star, 2010, p.11). Here is something to think about: have you ever heard of a cat running full speed into a glass door? Sure a dog is a “man’s best friend” and is always there by your side, he can catch a ball in his mouth, and he knows exactly...
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...Munden BUS 280 YD2 Forms of Business Ownership Sole Proprietorship Pros: The easiest way to start a business, you decide what you want your business to be, buy whatever equipment is needed along with leasing a building and getting permits. If the time were to come that you no longer to be in business, you just simply stop because there is no one else that has a stake in the business. You get to keep the profit that the business earns and if the business does well the profit can increase to your benefit. All the taxes on a sole proprietorship are taxed as personal income of the owner. You have the advantage of being you own boss. Being a business owner is something to be proud of, if the risk pays off all of the credit goes to the owner of the business. You have the ability to leave your business to your heirs without the complications of partners being involved. Cons: When you own your own business you and the business are considered one entity. You have unlimited liability of any debts or damages that may occur, so if you were to be sued you may have to sell personal belongings in order to pay the debt. When you are in business for yourself you may not have as many resources as those in a partnership or corporation. You only know a certain amount of people which can limit the amount of resources available to you. You must commit to long hours as a sole proprietorship owner, not only do you have to make sure that the business is ran property but you may also...
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...Checkpoint: A New House – Readiness Leonard Sugue University of Phoenix XECO 212 Economic Theory Audra Sherwood February 17, 2011 A New House – Readiness Deciding to buy a house is a lifelong goal for many people. Imagine that you are renting a studio apartment and have just discovered you are having a baby. Your present apartment is small and far from schools and local services. You have decided to move. There are many factors that come into play when making such a large and weighty purchase. Examine the decision-making process from the perspective of an economist. In your Final Project, you use these principles and other factors to make a final decision whether to buy a house. Purchasing a home for the first time can be overwhelming. A house can be the largest investment someone makes. It can provide advantages, but it can present disadvantages as well. The following principles can be used when deciding to purchase your first home: People Face Trade-offs (Mankiw, 2007) The Cost of Something Is What You Give Up to Get It (Mankiw, 2007) When deciding to purchase a home, the principle “People Face Trade-offs” can be applied to help make a final decision. Making decisions requires trading off one goal against another (Mankiw, 2007). The buyer must sacrifice a little to gain a lot. First time home buyers must realize that it takes a lot of money to purchase a home. Buyers must sacrifice things such as vacations, movies, special occasions, and...
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...Nine reasons to have your own business 1. You Control Your Own Destiny Many entrepreneurs consider themselves "Type-A" personalities, folks that like to take control and make decisions. In other words, owning a business saves them from having to work for anyone else. "One reason to own a small business is the ability to direct the culture of your company," says Kasey Gahler, a certified financial planner in Austin who left a big company to start his own business Gahler Financial three years ago. "When you're in the driver's seat, you are making the decisions on how best to steer your company into the future. This might be overwhelming for some and one must know when and how best to delegate. However, when you are able to make your own decisions about how best to operate day-to-day, this leads to creating a culture, a brand and an organization." 2. You Can Find Your Own Work/Life Balance One of the most oft-cited benefits of owning your own business is the flexibility that comes with it, whether that be working from wherever you want, setting your own hours, wearing a nightgown or even sitting next to your pet while you work. "I get to carry a knife, drive a pickup truck and hang out with my dog a lot more – what can be better than that?" says David Winters, who owns a mobile screen repair business called Screenmobile in Charlotte, North Carolina. Just as important, entrepreneurs say that owning their own business lets them set their priorities. "I make my own schedule...
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...Nowadays imperialism evokes a negative emotion and idea. It is looked down upon as an old fashioned, cruel way of life. However, like everything in life, it has its pros and cons. To be able to make a definite decision, we first need to understand fully what imperialism is. Countries that endorse imperialism feel the desire to compete with other countries in order to gain tycoon, boost national pride and expand territories to spread science, laws, and religion. An important benefit of imperialism is the development of modern technologies, like steam-powered ships to aid in the expansion of European empires. Due to imperialism, exploration was in the minds of people. Their motive was to explore unidentified territory in order to perform scientific...
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...considered more as a personal decision rather than a business decision. Fritzsche, David (2007) states “ Personal values have long been associated with individual decision behavior” (p. 1). As mentioned in the quote, the decision was driven by my personal values. The process and the decision of buying a home were longer than expected. The process in making the decision was based upon continuing to rent or own a property. In the decision-making process I was assisted by my wife and it consisted of the following, Identifying my decision, self assessment, gathering information (pros/cons), weigh out the best option, analyzing my option, select my option, and finally take action toward my decision. The process in making my decision had a structure, as previously stated I had identified my decision of buying a home rather than renting. This first step was based on my family values and proving a place to call home. The second step was completing a full self- assessment. Part of the assessment consisted of analyzing my finances, needs, and wants. This second step was a very important one because evaluation my finances played an important role in the final decision. The third step was gathering all the information of owning a home rather than renting. Part of this step included understanding the pros and cons of both options. The fourth step embraces the third step, after gathering enough information I ensured the pros surpassed the cons to help me lean toward the selection of...
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...Filmore Furniture Ltd Company Background * Incorporated in 1970 by Fred Filmore, a sole proprietor. * In 1983, Phil obtained his father’s furniture business and acquired the management of the business. * In 10 years the sales income increased to $5,100,000 and employed 58 full-time employees. * He is an aggressive manager and strategist. * During 1986 to 1993, Filmore Furniture modernized its manufacturing facilities. * Phil owned 63% of the share, 31% the five investors and the rest is retained by the employees of the company. Problem She is having a tough time choosing between whether she should sell the business, or manage the business herself. Objectives Choose the best option that will favor in Mrs. Lucinda Filmore, and provide her with an income that would benefit her financial situation. Also, an income to assist her to have a good standard of living for her and her children for the years to come, with the lowest short- and long term debt possible. Situation Analysis PEST Analysis Political:- * Canada-US Free Trade Agreement (1989) brought increased import competitors from larger American companies. * Opportunity to export in large US market Economical:- * During recession, additional fixed cost may be risky * The furniture industry is very competitive Social:- * Innovations resulted in good reputation, and goodwill in the furniture industry * Relationship with financial institutions; Customer...
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...understanding how they think and what drives them to make the decisions they do. Upon interviewing two business owners and observing how they run their businesses, the findings were intriguing and fascinating. A powerful and risky move would be striving towards making the switch to becoming a full-time entrepreneur and taking control of a business. Entrepreneurism is a valuable skill that schools need to promote so students have business ownership knowledge when graduating versus becoming an “employee” state of mind. The following will explain some things to consider, including pros and cons to becoming financially independent. Owning a business is a very risky endeavor, but it can be a very rewarding decision once executed properly. "If you're the owner, you may have to say, 'I screwed up,' but it's a lot better than saying, 'I didn't deserve that.'" Olsztynski, J. (2009). Happiness is ... owning A business. Plumbing & Mechanical, 27(9), 84. Retrieved from http://search.proquest.com/docview/220757601?accountid=458. One must possess the ability to fail and constantly push through hardships rising well above, and excelling along the way. Start up costs and daily operations can require a significant amount of initial capital, but once a business is on the market, can generate enough to cover them and produce residual income. After concluding interviews with two business owners in regards to starting up and daily operations, it provided much insight into the...
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...1 Becoming a Landlord Becoming a Landlord Owning a rental property is one way of achieving the dream of homeownership. But, in buying a rental property you not only become a new homeowner, you also take on the responsibilities of becoming a landlord. Your rental property is not only your home, but also your business. As a business owner, you must adhere to the laws, rules, and regulations that govern rental housing, and have a clear understanding of appropriate rental rules and practices. Before making the decision to buy a rental property, people should assess the willingness to share the home with others, devote time and hard work to manage your business, make repairs and maintain the property, provide services to your tenants, deal with difficult tenants, become familiar with state, local, and federal laws and regulations regarding landlord and tenant relationships, and consult and hire professionals, such as attorneys or tax preparers. You also should take a realistic look at what you can expect as a landlord the rewards as well as the increased responsibilities of operating a business. Advantages of owning a rental property, there are many good reasons to own a rental property. Some of the benefits that you may expect are, A place of your own owning property gives people the feeling of permanence and involvement in the community. Financial incentives monthly mortgage payments may be more manageable due to rental income. A portion of the rental income also may...
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...Lease Versus Purchase Should your company lease or purchase equipment? The answer to this depends on circumstance. Leasing equipment can be a good option for business owners who have limited capital or who need equipment that must be upgraded every few years, while purchasing equipment can be a better option for established businesses or for equipment that has a long usable life, both areas will be compared for a decision. Purchasing Before making the decision to purchase or lease a business needs to evaluate how the equipment will be used and the useful life of the equipment. Purchasing equipment has both pros and cons depending on the circumstances. Equipment of any kinds has maintenance and repairs over the years. One advantage for this company purchasing the equipment is a lower cost of maintenance. Typically the firm is responsible for all maintenance cost associated with the product, but there is options for extended warranties to cover the cost of repairs that need to be made. (Quickbooks.intuit.com, 2014). The firm is able to enter into a maintenance contract with the manufacture of a flat rate of $5000 a year (Titman, Keown, & Martin, 2014). Because leasing does not include maintenance the cost would grow each year as the equipment ages and becomes more prone to problems. A big disadvantage to purchasing equipment is the interest payments associated with the loan. Over the three years the firm will own the piece of equipment their average interest payment will be...
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