Read about Yum! Company.
Рис. \(1\). Fast food restaurant
Fast food grew to popularity in the \(1950\)s and \(1960\)s. Why did people loved fast food so much? Well, firstly, it's a matter of convenience. It's just easier to go to a restaurant and spend no time buying and preparing food. McDonalds was the first one to start chain fast food restaurants, but its biggest rival is Yum! Brands. However, ordinary people may not know the name of the company, but they certainly know and love the restaurants it owns.
Yum! Brands is one of the biggest restaurant companies. It owns KFC, Taco Bell, Pizza Hut and some more fast-food restaurants. The success story began in \(1930\), when the founder of Kentucky Fried Chicken Harland Sander opened his café. In twenty years in grew into a franchise of restaurants. Now there are over \(50\) thousand cafes and restaurants in more than \(145\) countries across the world and more than \(35\) thousand employees. The company has been successful at entering new markets, for example, in China. The keys to it are understanding and respecting the culture, employing local talented specialists and gain support of local state-owned companies and investors.
As the largest food chain owner, Yum Brands can be potentially interested in investing into a number of business schemes. Among these schemes can be mergers, expansions, investing in new products, etc.
I propose two project ideas. The fist one is opening a new office for international relations and the second one is updating software and hardware for the computer system. The first one can be sponsored by non-current sources, that are for long-term use. Non-current sources usually can't be converted into cash in less time than a year. Other examples of non-current sources are real estate, intellectual property, trademarks etc. This project should be sponsored by non-current, because this kind of project takes time, probably a year and a half. Before setting up a new office, company should consider the following things: legal constraints (for refurbishment, for example), health and security requirements, insurance and may more, let alone everyday things like furniture and communication requirements.
The second one can be funded by current source, that is mostly for short-term use. The company can convert it into cash in a short time. As for the other examples of current assets, they are inventory, prepaid expenses etc. I propose modernizing servers and other equipment, it can be done much faster, so a current source is the best option. Even including hiring outsource IT specialists it will take short time. The best option for funding this particular project would be to issue common or preferred stock in the firm.
Choose true or false:
1. Non-current sources are for short-term use.
2. Large owner like Yum! Brands isn't interested in investing into any business schemes.
3. Current sources are for short-term use.
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