FIN2602
Assignment 2 Semester 2 2026
Unique number:
Due date: September 2026
QUESTION 1
1.1
Nandi should prepare a budget before opening the bakery because it will help her
estimate expected income and expenses, compare the two amounts and identify
whether she is likely to have a surplus or a shortage of cash. A realistic budget will
also help her control spending and decide how much of the R40 000 can safely be
used for equipment, ingredients and other start-up costs (FIN2602 Study guide,
2023:13).
, Question 1
1.1
Nandi should prepare a budget before opening the bakery because it will help her
estimate expected income and expenses, compare the two amounts and identify
whether she is likely to have a surplus or a shortage of cash. A realistic budget will
also help her control spending and decide how much of the R40 000 can safely be
used for equipment, ingredients and other start-up costs (FIN2602 Study guide,
2023:13).
1.2
Nandi should first determine the total capital required to start and operate the bakery,
including equipment, ingredients, packaging and other running costs. She should
also consider the type of business and the cost and conditions of any finance she
may need, because these decisions affect the financial structure and future
sustainability of the bakery (FIN2602 Study guide, 2023:67–68).
1.3
Nandi could use borrowed capital, such as a small business loan from a bank or
another suitable lender, to supplement her R40 000 savings. She could also obtain
additional equity capital from a family member or another investor who is willing to
contribute money to the business, since business finance may combine own funds
and borrowed funds (FIN2602 Study guide, 2023:67–68).
1.4
Starting a bakery can give a woman in a rural community an independent source of
income that improves her ability to support herself and her family. It can also create
local work opportunities and allow useful skills, such as baking and customer
service, to be turned into an income-generating activity that contributes to the
financial wellbeing of the household (FIN2602 Study guide, 2023:5, 68–69).
1.5
Assignment 2 Semester 2 2026
Unique number:
Due date: September 2026
QUESTION 1
1.1
Nandi should prepare a budget before opening the bakery because it will help her
estimate expected income and expenses, compare the two amounts and identify
whether she is likely to have a surplus or a shortage of cash. A realistic budget will
also help her control spending and decide how much of the R40 000 can safely be
used for equipment, ingredients and other start-up costs (FIN2602 Study guide,
2023:13).
, Question 1
1.1
Nandi should prepare a budget before opening the bakery because it will help her
estimate expected income and expenses, compare the two amounts and identify
whether she is likely to have a surplus or a shortage of cash. A realistic budget will
also help her control spending and decide how much of the R40 000 can safely be
used for equipment, ingredients and other start-up costs (FIN2602 Study guide,
2023:13).
1.2
Nandi should first determine the total capital required to start and operate the bakery,
including equipment, ingredients, packaging and other running costs. She should
also consider the type of business and the cost and conditions of any finance she
may need, because these decisions affect the financial structure and future
sustainability of the bakery (FIN2602 Study guide, 2023:67–68).
1.3
Nandi could use borrowed capital, such as a small business loan from a bank or
another suitable lender, to supplement her R40 000 savings. She could also obtain
additional equity capital from a family member or another investor who is willing to
contribute money to the business, since business finance may combine own funds
and borrowed funds (FIN2602 Study guide, 2023:67–68).
1.4
Starting a bakery can give a woman in a rural community an independent source of
income that improves her ability to support herself and her family. It can also create
local work opportunities and allow useful skills, such as baking and customer
service, to be turned into an income-generating activity that contributes to the
financial wellbeing of the household (FIN2602 Study guide, 2023:5, 68–69).
1.5
