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INTRO TO BUSINESS CASE REPORT.docx

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Department
Administration
Course
ADM1300
Professor
All Professors
Semester
Spring

Description
Executive SummaryTo George TramotiniFrom Trevor PattersonSubject Granite slab creamery rd Date November 32010Problem What options does George have for receiving 300000 to fund his franchiseAlternatives Status quo Bank loan Venture capitalistsAngel investors Facts ConsideredGeorge has dreamed of being selfemployed He is single and has not acquired any debts Georges parents savings are locked away in retirement funds George needs 300000 to start the franchise George has recently graduated the Telfer School of Management Georges parents are interested in helping him RecommendationIt is recommended that George get a loan from the bank for the 300000 that he needs to open his own Granite Slab Creamery In the immediate term George will first need approximately 25 of the money necessary to receive the loan from the bank Since it is evident his parents would like to help him they can do this by putting a home equity line of credit for 75000 on his parents home with a rate of approximately 5 This allows for a very simple way for his parents to provide support and will allow for George to acquire his loan In the short term George must continue to manage his profits sensibly in order to maintain monthly payments on the loan acquired from the loan while also continuing to pay the 5 of the home equity line of credit In the long term George will look to have his loan repaid in full that he received from the bank while also repaying the 75000 as long term eventually the house on which the line of credit was taken out on will be sold Georges franchise will eventually be his own and this is Georges best option of acquiring 300000AssumptionsGeorges parents home is valued at a minimum of 300000 George has a very good credit rating because it is very rare that a student graduates university escaping any debt which was stated in the caseThe house in which Georges parents live in will eventually be sold which could even occur through inheritance should it take that long This is nonnegotiable in order for this specific plan to succeed as the 75000 line of credit gets paid once the house is sold George is an only child and his parents do not have the worry of expenses for any other children in the family
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