QUESTIONS AND
ANSWERS
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1 BSM1501 Full Exam Pack
This document is a compilation of UNISA Questions and Answers for BSM1501
Answers are motivated by a combination of:
Page references to the UNISA Study Guide and/or Prescribed Textbook:
Short summaries and/or content from the Guide regarding the relevant topic(s) in question.
(Incorrect options are also marked where applicable, in order to identify and disregard red-herring
alternatives)
Case Studies from the Study Guide are covered, as well as Assignments and Exams:
All Assignments from 2017 to 2020 are covered:
Exams covered are:
• May June (2018)
• Oct Nov (2018)
• May June (2019)
• Oct Nov (2019)
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Case study: New Romantics
Nadene Marx started New Romantics ten years ago in Bergbron, a small suburb in Northcliff. Nadene
is a qualified fashion designer who specialises in making bridal gowns, bridesmaids’ gowns, mother-
of-the-bride outfits and couture evening gowns.
After the birth of their first child, Nadene and her husband decided that she should resign from her
job. She started her own enterprise and registered it as a sole proprietorship.
After careful consideration, they decided that Nadene should rather work from home instead of
spending thousands of rands per month on renting a small space in a shopping centre. Nadene
contributed R100 000 of her savings to convert their double garage into a studio. The studio
consisted of a small reception and display area, a fitting room and a workshop for two seamstresses.
Nadene’s enterprise became so popular that she could no longer accept all the orders. She had to
employ another two seamstresses and an administrative assistant. Owing to the appointment of the
additional staff members her premises became far too small. When their neighbours wanted to sell
their house, Nadene decided to buy the property for her enterprise. She had to apply for a loan of
R900 000 to buy the premises and offered their own home, worth R1 million, as collateral. She also
applied for financing of R80 000 to buy more advanced sewing machines, overlockers, office
equipment and furniture. The new premises had enough space for Nadene to open a small shop that
sells accessories such as veils, hair accessories, jewellery and underwear. She appointed a full-time
shop assistant to handle the sales.
After numerous complaints from customers that they could not find affordable bridal shoes, one of
the new seamstresses, Nicky, suggested that they use off -cuts from the fabric to cover ordinary
shoes with the same fabric of which the wedding gown is made.
The brides would buy shoes of their choice and bring them to Nicky to cover them with matching
fabric.
200The process of making a wedding gown starts when a potential bride phones Nadene to make an
appointment to see her at the studio. Nadene will then sketch a design according to the bride’s
preferences and show her samples of fabric that will suit that particular design.
As soon as the bride has decided on a design and matching fabric, Nadene will work out a quotation
for the dress. The bride must then sign a contract to confirm acceptance of the quotation and pay a
deposit of 50% of the final price so that Nadene has enough cash to buy the fabric and accessories.
Nadene will then cut the fabric according to the design and the seamstresses will start the sewing.
The bride has to come to the studio for regular fittings and a final fitting will take place one week
before the wedding. The remainder of the money has to be paid when the bride collects the dress
from the studio.
Nadene’s target market is in Randburg and Roodepoort, and she competes with various other dress
designers in nearby areas, as well as with big businesses such as Bride & Co and The Bridal Couture
in Rivonia. Although her dresses are more expensive than those of Bride & Co, she has the
competitive advantage that her designs are unique – each bride can decide for herself what her
dress should look like.
Although Nadene’s designs are original, she has to be aware of the latest trends in fashion and
overseas designs play an extremely important role in the choices of her customers.
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