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Fin 2602. Semester 2. Assignment 2
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- University Of South Africa (Unisa)
- Book
- Financial Management
Fin2602. Assignment 2. Sem 2
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Fin2602Assignment 02 - Semester 2
Due date: 10 September 2020
Unique number: 685622
, Starting a business: Entrepreneurship
Question 1.
Which one of the following statements is correct? Textbook page 185
[1] Invest fifty percent of your retirement package in a new business.
[2] A business idea should come from the media.
[3] A family business has less problems than a partnership.
[4] It is relatively easy to transfer the ownership of a family business to children (parents to children).
[5] Entrepreneurship is a life skill
Buying an existing business:
Question 2.
Which one of the following statements is correct?
[1] Assessing the financial performance of an existing business does not include conducting a
feasibility study.
[2] The purpose of a financial analysis is not to ascertain to what extent the business enterprise has
achieved its goals.
[3] It requires little effort to replace current personnel with the purchaser’s own family members.
[4] It is very important to determine the possible/precise reasons why the business is for sale.
[5] It is important to replace the current personnel as soon as possible.
Buying a franchise:
Question 3.
A franchise package broadly consists of the following: (Textbook-page 246) No answer to match?
(a) the purchase price
(b) the franchise agreement
(c) the operating and procedure manual (OPM)
(d) a separate document about the purchaser
(e) training aspects
[1] a and b
[2] a and c
[3] b only
[4] b and c
[5] b, c and d
Question 4.
A prospective entrepreneur could assess a franchise by …
(a) visiting a number of franchises.
(b) studying examples of franchise agreements.
(c) evaluating the seller with regard to once-off or ongoing support.
(d) evaluating the seller with regard to the degree of protection afforded to the buyer in the franchise
agreement.
[1] a and b
[2] a and c
[3] a, b, c and d
[4] b and c
[5] b, c and d
Question 5.
Which of the following statements are correct?
Financing a business normally would include the following:
(a) a family business: own resources.
(b) a new business: equity as well as borrowed capital.
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