,OTE2601 Assignment 2 (COMPLETE
MULTIPLE CHOICE,ASSURED EXCELLENCE
QUESTION 1
A famous South African entrepreneur like Patrice Motsepe can
mentor young entrepreneurs in running a business. Discuss
the reasons why most businesses fail. [20]
1. Lack of Market Research (3)
Many entrepreneurs launch businesses without
understanding customer needs, preferences, or market
size. This results in products/services that do not satisfy a
real demand.
2. Poor Financial Management (3)
Failure to budget correctly, control expenses, or manage
cash flow can lead to insolvency. Many business owners
also mix personal and business finances, which creates
confusion.
3. Inadequate Planning (2)
Without a solid business plan, entrepreneurs lack
direction, goals, and strategies for sustainability and
growth.
4. Insufficient Capital (2)
Businesses often underestimate how much capital is
, required to sustain operations until profits are made,
leading to early closure.
5. Lack of Marketing and Sales Strategies (2)
Failing to market products or reach the right audience
leads to low sales and poor brand awareness.
6. Ineffective Leadership and Management (2)
Inexperienced or poor leadership leads to bad decisions,
low employee morale, and lack of vision.
7. Failure to Adapt (2)
Businesses that do not adapt to technological changes,
consumer trends, or economic conditions quickly fall
behind competitors.
8. Poor Customer Service (2)
Unsatisfied customers do not return or refer others.
Reputation and trust are key to long-term success.
QUESTION 2.1
Discuss the role of Trade Unions in the economy of a country.
[10]
1. Protecting Workers’ Rights: Trade unions negotiate fair
wages, safe working conditions, and employee benefits.
2. Reducing Inequality: They help in narrowing the wage
gap and ensuring fair distribution of income.
, 3. Promoting Job Security: Unions advocate against unfair
dismissals and provide legal support to members.
4. Enhancing Productivity: Improved working conditions and
job satisfaction can boost productivity.
5. Political Influence: They can influence labor laws and
economic policies in favor of workers.
6. Encouraging Training and Development: Unions push for
upskilling and lifelong learning opportunities.
7. Improving Industrial Relations: By facilitating dialogue
between employers and employees, unions reduce
strikes and promote stability.
8. Promoting Social Justice: They play a role in advocating
for economic transformation and inclusion.
9. Monitoring Compliance: Unions ensure employers
comply with labor laws.
10. Contributing to Economic Policy Debates: They help
shape national conversations on economic issues.
QUESTION 2.2
Discuss the steps that you will take before compiling a cash
flow plan. [10]
MULTIPLE CHOICE,ASSURED EXCELLENCE
QUESTION 1
A famous South African entrepreneur like Patrice Motsepe can
mentor young entrepreneurs in running a business. Discuss
the reasons why most businesses fail. [20]
1. Lack of Market Research (3)
Many entrepreneurs launch businesses without
understanding customer needs, preferences, or market
size. This results in products/services that do not satisfy a
real demand.
2. Poor Financial Management (3)
Failure to budget correctly, control expenses, or manage
cash flow can lead to insolvency. Many business owners
also mix personal and business finances, which creates
confusion.
3. Inadequate Planning (2)
Without a solid business plan, entrepreneurs lack
direction, goals, and strategies for sustainability and
growth.
4. Insufficient Capital (2)
Businesses often underestimate how much capital is
, required to sustain operations until profits are made,
leading to early closure.
5. Lack of Marketing and Sales Strategies (2)
Failing to market products or reach the right audience
leads to low sales and poor brand awareness.
6. Ineffective Leadership and Management (2)
Inexperienced or poor leadership leads to bad decisions,
low employee morale, and lack of vision.
7. Failure to Adapt (2)
Businesses that do not adapt to technological changes,
consumer trends, or economic conditions quickly fall
behind competitors.
8. Poor Customer Service (2)
Unsatisfied customers do not return or refer others.
Reputation and trust are key to long-term success.
QUESTION 2.1
Discuss the role of Trade Unions in the economy of a country.
[10]
1. Protecting Workers’ Rights: Trade unions negotiate fair
wages, safe working conditions, and employee benefits.
2. Reducing Inequality: They help in narrowing the wage
gap and ensuring fair distribution of income.
, 3. Promoting Job Security: Unions advocate against unfair
dismissals and provide legal support to members.
4. Enhancing Productivity: Improved working conditions and
job satisfaction can boost productivity.
5. Political Influence: They can influence labor laws and
economic policies in favor of workers.
6. Encouraging Training and Development: Unions push for
upskilling and lifelong learning opportunities.
7. Improving Industrial Relations: By facilitating dialogue
between employers and employees, unions reduce
strikes and promote stability.
8. Promoting Social Justice: They play a role in advocating
for economic transformation and inclusion.
9. Monitoring Compliance: Unions ensure employers
comply with labor laws.
10. Contributing to Economic Policy Debates: They help
shape national conversations on economic issues.
QUESTION 2.2
Discuss the steps that you will take before compiling a cash
flow plan. [10]
