100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
OTE2601 ASSIGNMENT 2 2024 QUESTION 1 Every entrepreneur has certain expectations and goals when choosing a business. 1.1What is a close corporation in business? Give one examples. (5)$2.85
Add to cart
OTE2601 ASSIGNMENT 2 2024 QUESTION 1 Every entrepreneur has certain expectations and goals when choosing a business. 1.1What is a close corporation in business? Give one examples. (5)
27 views 1 purchase
Course
OTE2601 (OTE2601)
Institution
University Of South Africa (Unisa)
OTE2601 ASSIGNMENT 2 2024
QUESTION 1
Every entrepreneur has certain expectations and goals when choosing a
business.
1.1What is a close corporation in business? Give one examples. (5)
ote2601 assignment 2 2024 question 1 every entrepr
Written for
University of South Africa (Unisa)
OTE2601 (OTE2601)
All documents for this subject (71)
Seller
Follow
HOPEACADEMY
Reviews received
Content preview
,ASSIGNMENT 02
QUESTION 1
Every entrepreneur has certain expectations and goals when choosing a
business.
1.1What is a close corporation in business? Give one examples. (5)
A close corporation, also known as a closely held corporation, is a type of
business organization that is owned and operated by a small group of
individuals, typically family members or a few close associates. This type of
corporation typically has a limited number of shareholders and is not publicly
traded on the stock market.
Example:
One example of a close corporation is the multinational food and beverage
company Mars, Incorporated, which is a privately held family-owned
business.
Reference:
- Gibson, J. (2019). Close Corporation. In Wank, R. D., & Szabo, C. (Eds.),
Encyclopedia of Business and Professional Ethics. Springer.
1.2 You are a Grade 7 teacher leading a discussion on the different kinds of
franchising.
1.2.1 What are the issues to consider when discussing about capital
requirement for a franchise (10).
When discussing the capital requirements for a franchise, it is important to
consider a few key issues:
1. Initial Franchise Fee: This is the upfront cost to purchase the rights to
operate a franchise. It is important to consider whether the initial franchise
fee is affordable and whether it provides value for the investment.
, 2. Ongoing Royalty Fees: Franchisees are often required to pay ongoing
royalty fees to the franchisor. These fees can vary and may be based on a
percentage of sales or a flat fee. It is important to understand the financial
impact of these ongoing fees on the franchise's profitability.
3. Start-Up Costs: In addition to the initial franchise fee, franchisees will need
to consider other start-up costs such as real estate, equipment, inventory,
and marketing. It is important to have a clear understanding of all the start-
up costs involved in opening a franchise.
4. Financing Options: Franchisees may need to secure financing to cover the
capital requirements of opening a franchise. It is important to explore
different financing options and understand the implications of taking on debt
to finance a franchise.
5. Return on Investment: Franchisees should carefully consider the potential
return on investment for a franchise opportunity. This involves analysing the
projected revenue and expenses to determine whether the franchise is a
financially viable opportunity.
6. Franchisor Support: Franchisees should also consider the level of support
provided by the franchisor, including training, marketing support, and on-
going guidance. This support can significantly impact the franchisee's ability
to meet the capital requirements and succeed in operating the franchise.
Reference:
- Rosenbaum, A. (2016). Franchising: An Introduction. CreateSpace
Independent Publishing Platform.
1.2.2 Do you agree with the assertion that businesses fail for a number of
reasons?
Substantiate on your answer by discussing the following;
1.2.2.1 Incompetent management (2)
Yes, I agree with the assertion that businesses fail for a number of reasons,
and one of those reasons is incompetent management. Incompetent
management can lead to poor decision making, ineffective communication,
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller HOPEACADEMY. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.85. You're not tied to anything after your purchase.
