Was restaurateur decision to advertise license good decision

Reference no: EM131485372

Question: A local restaurateur who had been running a profitable business for many years recently purchased a three-way liquor license. This license gives the owner the right to sell beer, wine, and spirits in her restaurant. The cost of obtaining the three-way license was about $100,000 since only 300 such licenses are issued by the state. While the license is transferrable, only $80,000 is refundable if the owner chooses not to use the license.

After selling alcoholic beverages for about one year, the restaurateur came to the realization that she was losing dinner customers and that her profitable restaurant was turning into a noisy, unprofitable bar. Subsequently, she spent about $5,000 placing advertisements in various newspapers and restaurant magazines across the state offering to sell the license for $90,000. After a long wait, she finally received one offer to purchase her license for $83,000. Was the restaurateur's decision to advertise the license a good decision? Would you recommend that she accept this $83,000 offer?

Reference no: EM131485372

Questions Cloud

Evaluate the importance of internal environmental analysis : Determine three specific reasons why an internal analysis has become an important activity for healthcare organizations.

Research the topic of diabetes : 1. Research the topic of Diabetes. 2. What are the different types of Diabetes?

Professional development and reach your career goals : How these Competencies help you with personal and professional development and reach your career goals

The challenges of declining reimbursements from insurance : Determine two (2) specific forces in the external environment that will have the most impact on your organization. Provide a rationale for your decision.

Was restaurateur decision to advertise license good decision : A local restaurateur who had been running a profitable business for many years recently purchased a three-way liquor license. This license gives the owner.

Data collection strategies for needs assessment-evaluation : Earlier in the course we read about commonly used data collection strategies for Needs Assessment and Evaluation.

Explain why communication is essential in an organization : Explain why communication is essential in an organization. Explain the ways that effective communication improves employee trust and engagement.

How can information systems be used in five porter model : How can Information Systems be used in Five Porter Model?

Longer in order to completely cure it : Why does Tuberculosis take 6-9 months or maybe even longer in order to completely cure it?

User Account

All Pages