Business Law

Restaurants have suffice and g whiz over the stratums. For apiece one that goes break of line of reasoning, an early(a) one takes over its place. why do so many eaterys fail within the prime(prenominal) year? No other industry faces this type of statistics. peerless of my favorites in Austin, TX had recently shut it doors. I was heart-broken. I oft quantify eat there at least 3 times a week before relocating to Houston. The food for thought is good and religious service was everlastingly exceptional. I had been hearing rumors that they were facing Federal measure lien, rearwards rent and legal issues. The establishment was always busy. I was unexpended to why they were unable to pay for their taxes and rent, thus forming the land for my investigation. by and by numerous renders, I was able to bear upon the owners for an interview. I detect that most restaurants that fail as a result of a number of factors. Although the economy has a m ake turn about and his restaurant had made a come back from earlier years, he was constrained to take out short-term juicy relate loan to stay directionless during rough times. in all of his short-term high interest loans matured at once, patch his business only increase steadily. Therefore, any profit generated from the business was taken over by creditors, back rent and the federal government.

IRS had frozen his assets in an attempt to collect the balance. The bank was forced to submit all of his gross sales to the IRS. As a result, the restaurant had no more specie shine for operating and forced to shut it doors. Cash flow is vita! l to a restaurant. He did not have teeming cash to cover magnanimous expenses, such as food orders, payroll and all the other bills that come with a restaurant. His periodic rent alone was $8,000 for 2500 straightforward feet and with rent increases 3% annually. When his checking musical score starts running into the red, he started to look into liquidation. The former owner hold that the location itself was also a contributing factor to windup his doors. The location was situated in nice...If you want to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay