Princess and Eternal Have an Idea for a Business That

question 159

Multiple Choice

Princess and Eternal have an idea for a business that will deliver meals to homes.Customers would place meal orders from one of 10 local restaurants and pay for the meal and delivery online.Once the meal order is placed,Princess and Eternal would be notified of the order and address of the customer.They would pick it up at the restaurant and deliver it to the customer's business or residence.They formerly lived in a community with this service and know it will work if set-up properly.What is the first thing they must do to have a successful business?

• A) Plan
• B) Design
• C) Execute
• D) Evaluate

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Definitions:

Direct Financing Lease

A lease agreement where the lessor records the present value of lease payments as a receivable rather than as a sale or lease revenue.

Lessor

The party in a lease agreement that owns the leased asset and grants the lessee the right to use the asset in exchange for lease payments.

Capital Lease

A lease agreement that grants the lessee ownership rights of the asset at the end of the lease term.

Gross Investment

The total amount spent on acquiring new assets and maintaining or upgrading existing ones, without deducting for depreciation.