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OTE2601 assignment 2 solutions semester 1 2024 (Full solutions)
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OTE2601ASSIGNMENT 2 SEMESTER 1 2024
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Question 1
1.1 A close corporation, also known as a closely held corporation, is a type of business
structure that is similar to a traditional corporation but has a smaller number of
shareholders and is often operated by a small group of individuals.
One example of a close corporation is a family-owned business where the ownership and
control of the company are closely held within the family.
1.2.1 When discussing capital requirements for a franchise, it is important to consider the
following issues:
1. Initial Investment: Franchisees need to have a clear understanding of the initial
investment required to start and operate the franchise, including the cost of purchasing
the franchise rights, training, and initial inventory.
Disclaimer
Extreme care has been used to create this document, however the contents are provided “as is”
without any representations or warranties, express or implied. The author assumes no liability as
a result of reliance and use of the contents of this document. This document is to be used for
comparison, research and reference purposes ONLY. No part of this document may be
reproduced, resold or transmitted in any form or by any means.
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