Comprehension Assessment - 41-90 Second Pizza - Loan Officer Role Play

Loan Officer's Analysis Quiz

First, enter your information. Then, complete the analysis quiz.

Student Information

First Name

Last Name

Period

Analysis Questions

1. According to the business proposal, what is the primary operational model of the business?

A full-service, dine-in restaurant with a large menu.A take-and-bake pizzeria with a streamlined menu, open only on weeknights.A delivery-focused ghost kitchen operating 7 days a week.A food truck that moves to different locations in Van Wert.

The plan is built on the efficiency of a take-and-bake model, a small menu, and a Monday-Friday schedule to keep costs low.

2. What is the projected Net Operating Profit per month during the first year of operation?

$9,325$1,000$2,860$6,465

This is the calculated profit after subtracting the Cost of Goods Sold and all monthly Overhead from the Total Sales.

3. Based on the Year 1 projections, does the business's monthly profit of $2,860 cover the bank's monthly loan payment of ~$1,000?

Yes, the profit comfortably covers the loan payment.No, the business is projected to lose money.No, the profit is less than the loan payment.Yes, but only because of the owner's capital injection.

A profit of $2,860 is more than double the required loan payment of ~$1,000, leaving a surplus.

4. What is the single biggest financial advantage of the business model as proposed for Year 1?

The business will have very high daily sales.The business has no labor costs because it is a solo operation.The business gets its ingredients for free.The business does not have to pay rent.

By eliminating employee wages, the business removes what is typically the largest single operating expense for a food establishment.

5. What is the primary problem this business claims to solve for its customers?

The high cost of restaurant food.The lack of healthy food options in Van Wert.The scheduling difficulty of having a hot meal when a family's schedule is chaotic.The long wait times for pizza delivery.

The entire concept is built around solving the '5 PM Chaos' by allowing customers to bake the pizza on their own schedule.

6. What is the strategic reason given for being closed on weekends?

To save money on electricity and other utilities.Because the owner wants to have weekends off.To specialize in the 'weeknight rush' and create scarcity, similar to the 'Chick-fil-A' model.Because it is illegal for take-and-bake businesses to operate on weekends.

The proposal explicitly states it's a specialist in weeknight meals and that being closed on weekends creates urgency for customers.

7. From a banker's perspective, what is the most significant risk associated with the applicant, John Robertson?

He is asking for too much money.His marketing plan is too aggressive.He has a background in construction, not business management.He does not have any of his own money invested.

A banker would see a lack of direct experience in finance, marketing, and management as a significant risk, despite the applicant's work ethic.

8. How does the business plan to connect with the local Van Wert community?

By offering the lowest prices in town.By using a generic, national brand name.By naming its signature pizzas after local landmarks like the Lincoln Highway and The Quarry.By being open 24 hours a day.

This strategy of 'hyper-local branding' is designed to create an authentic connection with the community's identity and history.

9. According to the proposal's long-term outlook, what is the applicant's stated goal for the business in Year 10?

To sell the business and retire.To franchise the business across Ohio.To keep it as a small, one-person operation.To use the profits to open a second location in a nearby town.

The 10-Year Outlook explicitly states a vision to replicate the successful model in a town like Delphos.

10. Which statement best describes the primary trade-off the bank must consider when evaluating this loan?

The applicant's high-risk, high-profit model vs. a safer, low-profit model.The immediate risk of a new, solo venture vs. the potential of a profitable, multi-location business in the future.The high cost of premium ingredients vs. the lower quality of standard ingredients.The ethics of lending to a business that will compete with other local restaurants.

This captures the core dilemma: Should the bank bet on the promising 10-year vision despite the significant risks of the one-person operation in Year 1?

11. What specific strategy does the applicant use to increase the average sale per customer?

Offering a 'buy one, get one free' deal every day.Placing a curated cooler of high-demand drinks and snacks near the checkout.Requiring a two-pizza minimum for all orders.Selling merchandise like t-shirts and hats.

The 'Van Wert Fuel' Cooler is explicitly designed to be a key profit center by encouraging impulse buys of high-margin items.

12. If a banker's primary goal is to minimize risk, which of the applicant's weaknesses would be the most compelling reason to DENY the loan?

The business name is not creative enough.The sales projections might be slightly too optimistic.The business model relies entirely on one person with no backup.The long-term expansion plan is too ambitious.

This represents a 'single point of failure.' An illness or injury to the owner would immediately halt all business operations and revenue, making it impossible to repay the loan. This is a massive risk.

Final Step: Record Your Decision

Your quiz score has been submitted to the spreadsheet. Now, proceed to the official loan committee form to record your final decision ("APPROVED" or "DENIED") and provide your justification.

Go to Final Decision Form