Business
Business, 12.12.2019 02:31, gianababnnna

Entrepreneur john doe has just founded pizza-ready inc., which will accept pizza orders for pickupover the phone. pizza-ready's strategyis to compete with established pizza restaurants by offeringsuperior, fresh, made-to-order deep-dish pizza and excellent service. as part of his advertisingcampaign, doe will publish an ad stating, "if your pizza is not ready in 20 minutes, that pizza plusyour next order are on us." doe has done extensive research on the pizza-cooking process and knowsthat all fresh deep-dish pizzas require 15 minutes of oven time and 2 minutes of preparation. moreover, as part of its excellent service, pizza-ready will accept orders whenever customers placethem, and a marketing study estimates that pizza-ready can count on an average demand of 20 pizzasper hour. doe, therefore, has ordered five pizza ovens, each of which is able to bake one pizza at atime. doe is now looking for a silent partner to carry the financial burden of his start-upcompany. given the structure of this business, a potential partner has asked you whether pizza-readywould be a profitable investment. what would you recommend, and why?

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