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Music Mart Case 2-2
 
 
MUSIC MART, INC.
BALANCE SHEET AS OF ______
Assets        Liabilities and Owners’ Equity
Current assets:            Current liabilities:    
Cash    $25,636        Notes payable    $   6,500
Accounts receivable    2,620        Accounts payable        5,000
Inventory    4,700        Total current liabilities    11,500
Prepaid insurance        1,224            
Total current assets    34,180        Other liabilities:    
            Mortgage payable        9,000
            Total liabilities    20,500
            Owners’ equity    
Property:            Paid in capital    25,000
Land      12,000        Retained earnings           680
Total assets    $46,180        Total liabilities
and owners’ equity    
$46,180

Answers to Questions:
1.    Increase Inventory 5,000; increase Accounts Payable 5,000
2.    Decrease Inventory 1,500; increase Cash 2,300; increase R ...
 
 
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Franchise Vs. Business Opportunity

To the untrained eye, franchise and business opportunity investments look pretty much the same. Both invite you to purchase a package of goods and services and business concepts. Both offer you the chance to capitalize on a business idea that has already proved to be successful. Both provide some training, handholding and access to a valuable marketplace.
In reality, though, there are huge differences between the two concepts. While these fundamental distinctions sometimes appear subtle, detecting and understanding them can help you protect yourself when you take the plunge into your new business.
If there's one telltale difference between a franchise and a business opportunity, it's the role of a trademark. The licensing of trademark rights is a hallmark of franchising: Every franchisee of a McDonald's, Subway or Holiday Inn is operating under a trademark license. The consistent image portrayed by these and other franchise systems symbolizes their strength in the marketplace, and is the direct result of a trademark license. If a program grants you the right to operate under a trademark owned by the seller, you're most likely looking at a franchise rather than a business opportunity.

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