OTE2601
ASSIGNMENT 2
2024
TEBOGO NDHLOVU
[Email address]
, OTE2601
ASSIGNMENT 02
QUESTION 1 1.1 A close corporation is a type of business structure in
which a small group of people, often family members or friends, own and
operate the business. An example of a close corporation is a small family-
owned restaurant.
1.2 When discussing the different kinds of franchising, it is important to
consider the following issues related to capital requirement for a
franchise:
1.2.1
- Initial franchise fee: This is the upfront fee paid to the franchisor for the
right to use their brand and business model.
- Ongoing royalty fees: Franchisees are usually required to pay a
percentage of their sales to the franchisor as ongoing royalty fees.
- Initial investment: Franchisees need to consider the total initial
investment required to open and operate the franchise, including costs
for equipment, real estate, and marketing.
1.2.2 Yes, I agree that businesses fail for a number of reasons, and here
is the substantiation for the assertion:
1.2.2.1 Incompetent management: Businesses can fail if they are not
effectively managed, with poor decision-making, lack of leadership, and
inability to adapt to changing market conditions.
1.2.2.2 Lack of experience: Inexperienced entrepreneurs may struggle to
navigate the challenges of running a business, leading to failure.
1.2.2.3 Poor financial control: Businesses need to effectively manage
their finances to remain solvent and grow. Poor financial control can lead
to cash flow problems and eventual failure.
ASSIGNMENT 2
2024
TEBOGO NDHLOVU
[Email address]
, OTE2601
ASSIGNMENT 02
QUESTION 1 1.1 A close corporation is a type of business structure in
which a small group of people, often family members or friends, own and
operate the business. An example of a close corporation is a small family-
owned restaurant.
1.2 When discussing the different kinds of franchising, it is important to
consider the following issues related to capital requirement for a
franchise:
1.2.1
- Initial franchise fee: This is the upfront fee paid to the franchisor for the
right to use their brand and business model.
- Ongoing royalty fees: Franchisees are usually required to pay a
percentage of their sales to the franchisor as ongoing royalty fees.
- Initial investment: Franchisees need to consider the total initial
investment required to open and operate the franchise, including costs
for equipment, real estate, and marketing.
1.2.2 Yes, I agree that businesses fail for a number of reasons, and here
is the substantiation for the assertion:
1.2.2.1 Incompetent management: Businesses can fail if they are not
effectively managed, with poor decision-making, lack of leadership, and
inability to adapt to changing market conditions.
1.2.2.2 Lack of experience: Inexperienced entrepreneurs may struggle to
navigate the challenges of running a business, leading to failure.
1.2.2.3 Poor financial control: Businesses need to effectively manage
their finances to remain solvent and grow. Poor financial control can lead
to cash flow problems and eventual failure.
