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OTE2601 Assignment 1 (DETAILED ANSWERS) 2024 - DISTINCTION GUARANTEED
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- University Of South Africa
OTE2601 Assignment 1 (DETAILED ANSWERS) 2024 - DISTINCTION GUARANTEED
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OTE2601 Assignment2 (DETAILED
ANSWERS) 2024 -
DISTINCTION
GUARANTEED -
DISTINCTION
GUARANTEED
ADMIN
[COMPANY NAME]
, OTE2601 Assignment 2 (DETAILED ANSWERS) 2024 - DISTINCTION
GUARANTEED - DISTINCTION GUARANTEED Answers, guidelines,
workings and references.....
QUESTION 1 Every entrepreneur has certain expectations and goals when
choosing a business. 1.1 What is a close corporation in business? Give one
examples. (5) 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). 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) 1.2.2.2 Lack of experience (2) 1.2.2.3 Poor financial control (2) 1.2.3.4
Inflexibility (2) 1.2.3.5 Unrealistic time frames (9) [25]
1.1 Close Corporation in Business:
A close corporation, also known as a closely held corporation, is a type of
business structure that limits ownership to a small number of shareholders.
In a close corporation, shareholders are typically involved in the
management and operation of the business. This type of corporation often
operates more informally than a publicly traded company, with fewer
regulatory requirements.
Example: An example of a close corporation could be a family-owned
restaurant where ownership is limited to family members and possibly a few
key employees. The shareholders in this type of business are directly
involved in the day-to-day operations and decision-making processes.
1.2 Issues to Consider When Discussing Capital Requirement for a
Franchise:
When discussing capital requirements for a franchise, several key issues
need to be considered:
1. Initial Franchise Fee: Franchisees typically need to pay an initial franchise
fee to acquire the rights to operate under the franchisor's brand. This fee can
vary significantly depending on the brand and industry.
2. Investment in Equipment and Inventory: Franchisees often need to
invest in equipment, inventory, and supplies required to operate the
franchise business. The cost of these items can vary based on the type of
franchise.
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