MNM2615 Assignment 3 (QUALITY
ANSWERS) UPDATED 2026
Business Plan - answer-A document that helps define the business concept, clarifies
the goals of the operations, evaluates markets and competition, determines costs and
capital needs, and enhances chances of success
Feasibility Study - answer-Evaluates the commercial viability of a proposed concept
Capital costs - answer-The long-term financing of the enterprise
Cash flow - answer-Profit plus depreciation allowances
Current assets - answer-Cash or assets capable of being turned into cash, such as
accounts receivable or inventory
current liabilities - answer-An obligation that will become due within a year
Demographics - answer-The statistical study of human populations, with particular
regard to density and distribution.
Debt financing - answer-Borrowing money from a source that does not acquire an equity
interest in the business through loans
Equity financing - answer-Is financing by owners of the organization
Four Cs of credit - answer-The basis on which loans are made: character, capital,
collateral, and the capacity to repay.
Franchise - answer-A privilege or right granted to another. In hospitality operations, a
franchise grants the right to use the name, methods, product, and so forth, in return for
fees
Franchisor - answer-The person or company selling the franchise
Franchisee - answer-The person or organization acquiring the right to use the franchise
obtained from the franchisor
Return on Investment (ROI) - answer-A ratio found by dividing profit by investment
Working capital - answer-The difference between current assets and current liabilities
ANSWERS) UPDATED 2026
Business Plan - answer-A document that helps define the business concept, clarifies
the goals of the operations, evaluates markets and competition, determines costs and
capital needs, and enhances chances of success
Feasibility Study - answer-Evaluates the commercial viability of a proposed concept
Capital costs - answer-The long-term financing of the enterprise
Cash flow - answer-Profit plus depreciation allowances
Current assets - answer-Cash or assets capable of being turned into cash, such as
accounts receivable or inventory
current liabilities - answer-An obligation that will become due within a year
Demographics - answer-The statistical study of human populations, with particular
regard to density and distribution.
Debt financing - answer-Borrowing money from a source that does not acquire an equity
interest in the business through loans
Equity financing - answer-Is financing by owners of the organization
Four Cs of credit - answer-The basis on which loans are made: character, capital,
collateral, and the capacity to repay.
Franchise - answer-A privilege or right granted to another. In hospitality operations, a
franchise grants the right to use the name, methods, product, and so forth, in return for
fees
Franchisor - answer-The person or company selling the franchise
Franchisee - answer-The person or organization acquiring the right to use the franchise
obtained from the franchisor
Return on Investment (ROI) - answer-A ratio found by dividing profit by investment
Working capital - answer-The difference between current assets and current liabilities
