Restaurant Management (Financing and Leasing / Food Purchasing)

What is term loan?

• A term loan is one repaid in installments, usually over a period longer than a year.

• A term loan is a type of credit card debt.
• Personal or business possessions that the borrower assigns to the lender as a pledge of debt repayment

• A loan that, typically, runs for less than 20 years.

Single-use real estate loans typically run for...

• more than 20 years

• less than 20 years

• up to 5 years

• less than 3 years

Which question is NOT IMPORTANT when checking the financial document?

• How much money do you have?

• How much money will it take to stay in business?

• How much money will I loss?

• How much money will you need to get the restaurant up and running?

Which of the following is NOT the basic category in establishing an accounting format to project sales and operational costs of a restaurant

• Fixed Cost

• Marginal Cost

• Labor Cost

• Sales

The PURPOSE OF INCOME STATEMENT is to to provide information to management and ownership about the financial performance (profitability) of the restaurant over a given period of time.

• True

• False

Which refers to possible sources of loan sources can be approached?

• Trade Credit

• Local Bank

• Online Lender

• Friends, relatives, silent partners, and syndicates

The Small Business Administration (SBA) is user friendly and has an excellent success record in lending money to restaurants. Which is NOT THE BASIC REQUIREMENT for SBA loans?

• An unclear idea of which loan program is the most suitable for you

• The right type of business

• Willingness to provide the detailed financial and market data required

• Knowing how to fill out the application properly

In a LEASE, what statement SHOULD NOT BE INCLUDED?

• Permission to alter the building.

• Unclear or Unenforceable Terms

• Permission to erect a sign (a sign can be a risk that forces the landlord to pay higher insurance).

• Permission to landscape and put up outside lighting.

What is the suitable amount of lease?

• 6-8% of sales

• 1-10% of sales

• 5-8% of sales

• 2-5% of sales

Which of the following is NOT CATEGORISED as restaurant insurance?

• Workers’ compensation and employers’ liability insurance.

• Fire insurance

• Worker Compensation

• Automobile insurance