You Make the Call-Situation 1

question 24

Essay

You Make the Call-Situation 1
Ethan Moore is a college student in Phoenix, Arizona, currently enrolled as an entrepreneurship major. Moore's home is in Chandler, Arizona, a nearby city where he is considering purchasing a franchise. The franchise caught his interest while he was on a shopping trip to the Tucson Mall, and is operated by an Idaho-based gumball company named Gumball Gourmet.
Moore talked to the owner of the franchise at the Mall while he was stocking the kiosk, which is set up in three tiers with 47 gumball machines and a money changer. The owner mentioned in their brief conversation that this particular kiosk had sold 12,000 gumballs in the last 30-day period.
From information he found at the Gumball Gourmet Web site, Moore determined that franchises are available with as little as a $25,000 investment.
(Source: http://www.gumballgourmet.com, September 2003.)

---

Definitions:

Malthusian Trap

A situation where population growth outpaces agricultural production, leading to famine, disease, and war.

Poor

Refers to the state of having insufficient financial resources or wealth.

Food

Nutritive material consumed by living organisms to sustain life and growth.

Malthusian Trap

A theory suggesting that population growth tends to outpace agricultural production, leading to periodic starvation, poverty, and population decline.