Which one would you recommend for Ali? Explain your choice with clear reasons.

1-Question one
sara is an experienced graphic designer who wants to start her own design studio. She plans to work alone at first but hopes to expand and hire employees in the future. She wants full control over decision-making but is also concerned about personal liability if a client sues her for design errors. Additionally, she needs funding to buy high-end design software and equipment.

I. Based on the information above, which two business ownership types could Sara choose?

II. Compare both options and justify your final decision with clear reasoning.

2-Question Two
Identify the five forces in Porter’s Model and explain how they impact business feasibility.

3-Question Three
Ali wants to start his own business by buying a franchise. He has some money saved but will also need a loan. He is excited to run a business but has no experience.
He has two options:
A well-known fast-food chain
A new fast-food franchise

I. Compare the pros and cons of both franchise options.

II. Which one would you recommend for Ali? Explain your choice with clear reasons.

4-Question Four
A potential buyer is evaluating a company using the Excess Earnings Method (EEM). The company has the following financial details:
Adjusted Tangible Net Worth = $280,000
Opportunity Cost Rate = 23%
Alternative Salary the Buyer Would Earn = $38,000
Projected Net Earnings = $90,000
Years-of-Profit Figure for Intangibles = 4.2

Compute the opportunity cost of investing in the business
Compute the extra earning power
Estimate the value of intangibles
Determine the total business value

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