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Thomas Money Maters

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Submitted By dee415
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Existing Good or Service Business Proposal Thomas Money Service Inc.
University of Phoenix
ECO 561
September 5, 2011

Existing Good or Service Business Proposal The Thomas Money Service, Inc. is a consumer finance company that has been granting loans and financing since 1940. Within the first five years the company expanded its business when it began “issuing business loans, business acquisition financing, and commercial real estate loans” (University of Phoenix, 2011, p. 1). By 1946 the company expanded to include equipment financing by creating a subsidiary named Future Growth Inc. (FGI). Due to increased demand in forestry and construction equipment in 1951 FGI purchased a manufacturing company so that the company was able to offer financing as well as their own brand of construction equipment. Over the past 67 years, FGI has held a monopoly on financing and manufacturing construction equipment and has seen only increased profits year after year. FGI has also never had to lay off any of its employees. “This track record has allowed their stock to grow from $5.00 to $85.60 with stock splits from 1975 to 1998. FGI has never issued bonds, and the present stock value is $35” (University of Phoenix, 2011, p. 1). Unfortunately, with the current economic downturns, natural disasters, and a decline in new-home sales, profits for FGI began to decline by 30% from the previous year. Due to the decline in production, the company was forced to layoff a third of their employees. Even with the current drop in new-home sales, there is still the opportunity for demand to increase as the economy becomes healthy again. Below the author will discuss how to increase revenue. Increase revenue

FGI has many opportunities to increase revenue. Increasing revenue is not only dependent on the sales price

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