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Matt, Angad and Alina are university students who own Beach SUP, a small business that rents stand-up paddle boards (SUP boards) on Crescent Beach, Nova

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Matt, Angad and Alina are university students who own "Beach SUP", a small business that rents stand-up paddle boards (SUP boards) on Crescent Beach, Nova Scotia. SUP boards are becoming more popular as a summer water sport as it is relatively easy to learn, is fun and provides physical benefits from strength and balance to relaxation and outdoor, laid-back lifestyle. Currently, Beoch sUP has not spent any money on advertising, and it is the only company renting SUP boards on Crescent Beach. They chose this beach because it is the only beach in Nova Scotia that cars can drive along and the beach is two kilometres long. The business operates for three months, from June 1 to August 31 . Aeach sUP owns four SUP boards, which it rents out for $25 per hour each. The owners estimate that boards are rented for 600 hours per month ( 4 boards 30 days 5 hours per day). Beoch SUP hires a summer student, Nadia, to help with rentals. Nadia is paid $21 per hour for 5 hours per day (30 days per month). For each hour that a paddle board is rented, the business incurs $3 supplies (wax, ete) to prepare the boards. Beoch sup fixed costs include rent and salaries. The business rents a beach kiosk for $1,500 per month during the three summer months. They store business items in parents' basements during the other 9 months for free. Angad is paid a salary of $3,000 per month because he works full time for Beech SUP during the three summer months. Matt and Alina have other full time summer jobs, but they share in the business (and initially invested in the business) and help to make business decisions. Beech sup purchased the four boards two years ago for $1,080 each. The boards are depreciated on a straight-line basis and are estimated to have a 3year life. NOTE: Depreciation Expense is ONtY deducted, or recorded, in the three summer months: determine the annual depreciotion amount, and allocote this amount over these three months equally. The three friends believe that the business has potential to earn more income on Crescent Beach. They are considering a few different options for next summer to boost profits and give them more money for expenses during the school yeat. As well, each of the three owners would like to invest part of their portion of business earnings in the TSX stock market. D. What other factors and costs would you consider, if you were to open and operate a business like this? Name three, and briefly state how they might impact the risk of profitability; 15 words or less

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