Busn 278 Essay

369 WordsSep 21, 20152 Pages
1. What financial issues has growth created for Finagle a Bagel? After watching the video, it was made clear how expensive it is to capitalize a business and a business owner needs a lot of money to do so. The original owner of the company had to sell pieces of the company to help it grow due to banks not wanting to lend money to him. Expansion to other countries is possible, specifically Hong Kong, and this also requires money and expertise in the real estate area. The owners are also not able to take any time off to go on vacation or just relax because of the extreme need for the capital and growth of the company. 2. What does Alan mean when he says that the restaurant business is a great top line business? What Alan means is that the restaurant business provides a great area of growth opportunity and this is what is meant by top line business. Essentially, top line business refers to a company's sales revenue and the growth in this area means that there has been an increase in sales revenue and growth. Typically, restaurants have the ability to grow in their sales by having multiple avenues in which do so. For example, for Finagle a Bagel, in addition to the 17 retail locations, Alan and his partner resale their product outside of their retail locations and this provides more profit to the company. This helps continue to provide the company with top line business growth. 3. What does that have to do with the bottom line? The bottom line generally refers to the overall net income of a company. "More specifically, the bottom line is a company's income after all expenses have been deducted from revenues" (Investopedia, 2009, para 1). So, for Finagle a Bagel, the top-line growth they experience has a large impact on the overall bottom line by demonstrating more profit than expenses. This is the main goal of all organizations and it is what allows them to stay
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