I need a response to my classmates discussion board post, write as if you are writing to my classmate .
Clinton
What information about the business do you need before deciding to invest your savings?
First and foremost, call me a bad friend because I 100% would not invest in this situation. If I were forced to
invest, I would first see if this particular type of situation existed in similar sized areas and markets. An
abundance of Social Media research would be done to see if this type of art would take off with the help of
social media blasts. It sounds similar to Banksy, so, it likely would have a social media following. Art is a very
niche market, the idea that "my friend" thinks he would be able to sell his artwork for ten times the investment
costs does not surprise me. As far as the structure to be purchased, I would research similar structures and
recent sales history. I would look up zoning for the walls to see if business is even allowed. There are almost
too many things to list that would need to be just right for me to invest in arts.
What kind of profit split would you suggest to your friend?
I would set up a somewhat tiered system. I would want 70% of the profit until the structure is 100% paid off. I
would then wish to reverse those percentages with my friend buying the property back from me. If that would
not work for him…sorry good sir.
Review the Course Overview video. What other types of business decisions can be answered with the help of
accounting information? Many business decisions can be assisted with the help of accounting information such
as: money allocation, resource allocation, expansion, downsizing, investment potential.
Sample Solution