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Making a choice concerning the changes, which a company must undergo to expand, is a challenging task, as it requires locating the slightest chances for risk and addressing the specified issues in a reasonable and efficient manner (Ruegg 44). Despite the fact that, when choosing between the real estate and the real franchise, the decision based on the profitability of the former option is obvious, further analysis of the associated risks shows that the specified opportunity is also valued based on the experts’ opinions (Rokach 114).
It is assumed that experts are likely to consider the real estate option as the most adequate choice to make in the specified circumstances (Alhabeeb 112). An analysis of the specified option shows that the actual opportunities for the owners of an enterprise to succeed are, in fact, rather high (Aumann 76). Indeed, the index of the specified option’s profitability points to the fact that the current ratio of the real estate makes 3.1. The real franchise option, in its turn, provides a 2.25 outcome, which is considerably lower than the above-mentioned proposition (Chung 8).
Since the experts’ opinions support the choice that was determined in the course of a detailed and thorough analysis, the need to consider the real estate option as the most adequate solution to the company’s current problems is obvious (Race 28). While the opinion of experts on the real franchise option can also be deemed as positive, the idea of expanding through real estate is more legitimate, as it receives the greatest support from the stakeholders involved.
Alhabeeb, Mohammad J. Entrepreneurial Finance: Fundamentals of Financial Planning and Management for Small Business. New York City, New York: John Wiley & Sons, 2014. Print.
Aumann, Robert J. Collected Papers. Vol. 2. Boston, Massachusetts: MIT Press, 2000. Print.
Chung, Eek-June. Risk and Bank Expansion into Nonbanking Businesses (RLE: Banking & Finance).New York City, New York: Routledge, 2013. Print.
Race, Daniel R. Limitations on the Business of Banking: An Analysis of Expanded Securities, Insurance, and Real Estate Activities. New York City, New York: Routledge, 2012. Print.
Rokach, Lior. Data Mining with Decision Trees: Theory and Applications. Hackensack, New Jersey: World Scientific, 2007. Print.
Ruegg, Rosalie, and Harold Marshall. Building Economics: Theory and Practice. New York City, New York: Springer Science & Business Media, 2013. Print.