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July 11, 2019

Principles Of Accounting I

As the owner of a restaurant, you must make decisions about the location of your restaurant and the equipment and furniture needed to operate your restaurant. Would you prefer to buy or lease your building? Also, discuss whether you would prefer to buy or lease your equipment and furniture. What benefit do you see in your choices? 

Please include the name of the person or question to which you are replying in the subject line. For example, “Tom’s response to Susan’s comment.”

ALSO PLEASE REPLY TO ANOTHER STUDENTS COMMENT BELOW 

AMY:

If I was starting up a new restaurant, I would want to lease everything that I could in the beginning.  When you are leasing, you can call someone else when something breaks and not have to worry about that added expense in the beginning.  I try to tell my friends this that are interested in buying a house, especially if they are struggling anyway.  There used to be significant gain in purchasing a home, but with it comes paying for your own repairs and remodeling.  If the dishwasher breaks, you are responsible for repairing it.  If you are renting, you can call the landlord to help with some, if not all, repairs.  Once the restaurant is successful, then I could step back and regroup, so to speak.  I could look and see if I was in the best location or if I needed to upgrade my equipment with another lease or purchase it.

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Principles Of Accounting I was first posted on July 11, 2019 at 6:41 pm.

 

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