pls help asap?

Rick is thinking about starting his own business. The start-up costs he has identified include $12,000 to lease an office, $25,000 for inventory, and $30,000 for the first year's payroll. For the first year, he projects that he that he would make a slight profit of $3,250. Would it be better to use the money to open the business or to invest the money in a savings bond with the first year return of 5.99 percent?

8 Answers

Relevance
  • 2 months ago

    Now is not a good time to start a physical business, tell him to save is money and wait until the Covid-19 crises is over. Or, start a dropshipping business on line that will not cost him anywhere as much as he thinks.

  • 2 months ago

    Rick turned himself into a pickle.

    PICKLE RICK!

    Pickles do not start businesses...pickles ARE businesses!!!

  • 2 months ago

    Rick is going to be part of his payroll so in addition to the yearly profit, he pays himself and gets deductions for legitimate business expenses.

    Also he hasn't identified all of his costs  it takes a lot more than $67,000 to start a business.

    AND...Rick wouldn't start a business, you moron.    Anyone who can invent a portal gun,. build and intergalactic spaceship out of garage junk and SQUANCH is not going to sit down and spend his time starting a silly business.  There is SO MUCH  that is MORE IMPORTANT.

    You are not a Rick...You are a Jerry.

  • 2 months ago

    There haven't been any savings bonds with the first year return of 5.99 percent in many years, and if John thinks there are, then his business is probably going to fail, so he should invest in a savings bond instead, where he won't make 5.99, but at least he won't lose money.

  • What do you think of the answers? You can sign in to give your opinion on the answer.
  • 2 months ago

    He set nothing aside for insurance, electric bills, phone bills,  advertising,  computer access and equipment,  or tax accountant.  Among other things. 

  • Judy
    Lv 7
    2 months ago

    do your own homework.

  • Anonymous
    2 months ago

    move to homework help. damn cheater

  • 2 months ago

    I'd wait a year or so.  Covid is at its worst ever.

Still have questions? Get answers by asking now.