OTE2601 Assessment 2 Solutions
2025
Name: [Your full name]
Student Number: [Your student number]
Assessment 2
Module Code: OTE2601
Subject Name:
Orientation to Teaching Economic
and Management Issues
________________________________________________________
Honesty Declaration
Name: ..............................................................
Student Number: .............................................. Module Code: OTE2601
I declare that this assignment is my own original work. I have not copied anyone else’s
work or allowed anyone else to copy mine. I am aware that plagiarism is fraud and may
be punished by the cancellation of an offending student’s registration.
Signature: ........................................................
Date: ……………………………………………
, OTE2601 ASSIGNMENT 2
Question 1: Reasons Why Most Businesses Fail
Many businesses fail due to a combination of internal weaknesses and external
pressures. Below are some key reasons:
1. Lack of Planning: Entrepreneurs often start businesses without a proper
business plan, leading to poor resource allocation and unclear goals.
2. Inadequate Capital: Without enough start-up or operating capital, businesses
struggle to pay suppliers or staff, leading to closure.
3. Poor Management: Lack of experience in finance, HR, or operations leads to
bad decisions and inefficiency.
4. Ignoring Market Needs: Not conducting market research means
products/services may not match customer demand.
5. Weak Marketing: Ineffective or no marketing prevents the business from
reaching potential customers.
6. Overexpansion: Expanding too quickly without a strong base causes logistical
and financial strain.
7. Uncontrolled Expenses: Poor financial control leads to debt and cash
shortages.
8. Economic Downturns: Recessions and inflation reduce consumer spending and
increase costs.
9. Technological Changes: Failure to adapt to new technologies can render
businesses obsolete.
10. Non-compliance with Regulations: Legal issues like tax evasion or not
registering a business lead to penalties or shutdowns.
2025
Name: [Your full name]
Student Number: [Your student number]
Assessment 2
Module Code: OTE2601
Subject Name:
Orientation to Teaching Economic
and Management Issues
________________________________________________________
Honesty Declaration
Name: ..............................................................
Student Number: .............................................. Module Code: OTE2601
I declare that this assignment is my own original work. I have not copied anyone else’s
work or allowed anyone else to copy mine. I am aware that plagiarism is fraud and may
be punished by the cancellation of an offending student’s registration.
Signature: ........................................................
Date: ……………………………………………
, OTE2601 ASSIGNMENT 2
Question 1: Reasons Why Most Businesses Fail
Many businesses fail due to a combination of internal weaknesses and external
pressures. Below are some key reasons:
1. Lack of Planning: Entrepreneurs often start businesses without a proper
business plan, leading to poor resource allocation and unclear goals.
2. Inadequate Capital: Without enough start-up or operating capital, businesses
struggle to pay suppliers or staff, leading to closure.
3. Poor Management: Lack of experience in finance, HR, or operations leads to
bad decisions and inefficiency.
4. Ignoring Market Needs: Not conducting market research means
products/services may not match customer demand.
5. Weak Marketing: Ineffective or no marketing prevents the business from
reaching potential customers.
6. Overexpansion: Expanding too quickly without a strong base causes logistical
and financial strain.
7. Uncontrolled Expenses: Poor financial control leads to debt and cash
shortages.
8. Economic Downturns: Recessions and inflation reduce consumer spending and
increase costs.
9. Technological Changes: Failure to adapt to new technologies can render
businesses obsolete.
10. Non-compliance with Regulations: Legal issues like tax evasion or not
registering a business lead to penalties or shutdowns.
