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BSM1501 - Study Guide Questions and Answers with
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Business Management (University of South Africa)
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BSM1501 – Study Guide Questions and Answers (+Feedback)
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Section A:
Case study: New Romantics
Nadene Marx started New Romantics ten years ago in Bergbron, a small suburb in
196
Northcliff. Nadene is a qualified fashion designer who specialises in making bridal gowns,
bridesmaids’ gowns, mother-of-the-bride outfits and couture evening gowns.
After the birth of their first child, Nadene and her husband decided that she should resign
197
from her job. She started her own enterprise and registered it as a sole proprietorship.
After careful consideration, they decided that Nadene should rather work from home
instead of spending thousands of rands per month on renting a small space in a shopping
centre. Nadene contributed R100 000 of her savings to convert their double garage into a
studio. The studio consisted of a small reception and display area, a fi tting room and a
workshop for two seamstresses.
Nadene’s enterprise became so popular that she could no longer accept all the orders.
198
She had to employ another two seamstresses and an administrative assistant. Owing to
the appointment of the additional staff members her premises became far too small.
When their neighbours wanted to sell their house, Nadene decided to buy the property
for her enterprise. She had to apply for a loan of R900 000 to buy the premises and
offerred their own home, worth R1 million, as collateral. She also applied for financing of
R80 000 to buy more advanced sewing machines, over lockers, office equipment and
furniture. The new premises had enough space for Nadene to open a small shop that sells
accessories such as veils, hair accessories, jewellery and underwear. She appointed a full-
time shop assistant to handle the sales.
After numerous complaints from customers that they could not find affordable bridal
199
shoes, one of the new seamstresses, Nicky, suggested that they use off -cuts from the
fabric to cover ordinary shoes with the same fabric of which the wedding gown is made.
The brides would buy shoes of their choice and bring them to Nicky to cover them with
matching fabric.
The process of making a wedding gown starts when a potential bride phones Nadene to
200
make an appointment to see her at the studio. Nadene will then sketch a design according
to the bride’s preferences and show her samples of fabric that will suit that particular
design. As soon as the bride has decided on a design and matching fabric, Nadene will
work out a quotation for the dress. The bride must then sign a contract to confirm
acceptance of the quotation and pay a deposit of 50% of the final price so that Nadene
has enough cash to buy the fabric and accessories. Nadene will then cut the fabric
according to the design and the seamstresses will start the sewing. The bride has to come
to the studio for regular fittings and a final fitting will take place one week before the
wedding. The remainder of the money has to be paid when the bride collects the dress
from the studio.
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BSM1501 – Study Guide Questions and Answers (+Feedback)
Nadene’s target market is in Randburg and Roodepoort, and she competes with various
201
other dress designers in nearby areas, as well as with big businesses such as Bride & Co
and The Bridal Couture in Rivonia. Although her dresses are more expensive than those
of Bride & Co, she has the competitive advantage that her designs are unique – each bride
can decide for herself what her dress should look like.
Although Nadene’s designs are original, she has to be aware of the latest trends in fashion
202
and overseas designs play an extremely important role in the choices of her customers.
The fabric, designs and trimmings of bridal gowns change constantly and Nadene has to
be aware of new methods of stitching and ironing. Her equipment also has to be of the
best quality, therefore she has to upgrade her sewing machines and over lockers regularly.
Nadene advertises on the internet and the name of her enterprise, her website and her
203
contact details are also displayed on her car. In addition, she displays some of her gowns
at various local wedding expos. However, most of her customers are referrals from
satisfied previous customers.
Multiple-choice questions
204
(1) Nadene Marx could be classified as an entrepreneur because she .
(a) did not display any signs of creativity or innovation
(b) took calculated risks
(c) managed the business without ensuring growth (d) started her own
enterprise
Choose the correct option:
(1) a, b, c
(2) b, c
(3) b, d
(4) a, b, c, d
(2) Nicky, who suggested that they should use off -cuts from the fabric to cover
ordinary shoes with the same fabric of which the wedding gown is made, could
be classified as a/an .
(1) intrapreneur
(2) entrepreneur
(3) small business manager
(4) franchisor
(3) Nadene registered New Romantics as a sole proprietorship. An advantage of a
formal enterprise is that Nadene.
(1) does not have to pay tax
(2) does not have to keep financial records
(3) has to pay tax
(4) has easier access to finance
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BSM1501 – Study Guide Questions and Answers (+Feedback)
(4) Nadene used R100 000 of her savings to convert their double garage into a studio.
This could be regarded as an example of her_________.
(1) involvement
(2) commitment
(3) positive attitude and approach
(4) perseverance
(5) Nadene sketches the designs according to the brides’ preferences, works out
quotations for the dresses and cuts the fabric according to the designs. This could
be regarded as an example of her__________.
(1) involvement
(2) commitment
(3) positive attitude and approach
(4) perseverance
(6) Nadene applied for financing of R80 000 to buy more advanced sewing machines,
over lockers, office equipment and furniture. This could be regarded as an
example of her .
(1) creativity and innovative ability
(2) perseverance
(3) positive attitude and approach
(4) willingness to take risks
(7) The opening of a small shop that sells accessories such as veils, jewellery and
underwear could be regarded as an example of Nadene’s.
(1) creativity and innovative ability
(2) perseverance
(3) positive attitude and approach
(4) willingness to take risks
(8) Owing to the appointment of the additional staff members Nadene’s premises
became far too small and she bought their neighbours’ property. This is an
indication of __________.
(1) her general management skills
(2) New Romantics’ growth
(3) New Romantics’ survival
(4) her insight into profit and loss
(9) Although Nadene advertises on the internet, most of her customers are referrals
from satisfied previous customers. Her ability to __________would therefore
play an extremely important role in New Romantics’ success.
(1) maintain sound human relations
(2) carry on despite setbacks
(3) take calculated risks
(4) use her own money to establish the enterprise
Downloaded by Masilo Mohale ()
BSM1501 - Study Guide Questions and Answers with
Feedback 2018
Business Management (University of South Africa)
StuDocu is not sponsored or endorsed by any college or university
Downloaded by Masilo Mohale ()
, lOMoARcPSD|4554453
BSM1501 – Study Guide Questions and Answers (+Feedback)
PLEASE NOTE:
The Answers with Feedback is provided at the end of each Sections’ Questions.
Section A:
Case study: New Romantics
Nadene Marx started New Romantics ten years ago in Bergbron, a small suburb in
196
Northcliff. Nadene is a qualified fashion designer who specialises in making bridal gowns,
bridesmaids’ gowns, mother-of-the-bride outfits and couture evening gowns.
After the birth of their first child, Nadene and her husband decided that she should resign
197
from her job. She started her own enterprise and registered it as a sole proprietorship.
After careful consideration, they decided that Nadene should rather work from home
instead of spending thousands of rands per month on renting a small space in a shopping
centre. Nadene contributed R100 000 of her savings to convert their double garage into a
studio. The studio consisted of a small reception and display area, a fi tting room and a
workshop for two seamstresses.
Nadene’s enterprise became so popular that she could no longer accept all the orders.
198
She had to employ another two seamstresses and an administrative assistant. Owing to
the appointment of the additional staff members her premises became far too small.
When their neighbours wanted to sell their house, Nadene decided to buy the property
for her enterprise. She had to apply for a loan of R900 000 to buy the premises and
offerred their own home, worth R1 million, as collateral. She also applied for financing of
R80 000 to buy more advanced sewing machines, over lockers, office equipment and
furniture. The new premises had enough space for Nadene to open a small shop that sells
accessories such as veils, hair accessories, jewellery and underwear. She appointed a full-
time shop assistant to handle the sales.
After numerous complaints from customers that they could not find affordable bridal
199
shoes, one of the new seamstresses, Nicky, suggested that they use off -cuts from the
fabric to cover ordinary shoes with the same fabric of which the wedding gown is made.
The brides would buy shoes of their choice and bring them to Nicky to cover them with
matching fabric.
The process of making a wedding gown starts when a potential bride phones Nadene to
200
make an appointment to see her at the studio. Nadene will then sketch a design according
to the bride’s preferences and show her samples of fabric that will suit that particular
design. As soon as the bride has decided on a design and matching fabric, Nadene will
work out a quotation for the dress. The bride must then sign a contract to confirm
acceptance of the quotation and pay a deposit of 50% of the final price so that Nadene
has enough cash to buy the fabric and accessories. Nadene will then cut the fabric
according to the design and the seamstresses will start the sewing. The bride has to come
to the studio for regular fittings and a final fitting will take place one week before the
wedding. The remainder of the money has to be paid when the bride collects the dress
from the studio.
Downloaded by Masilo Mohale ()
, lOMoARcPSD|4554453
BSM1501 – Study Guide Questions and Answers (+Feedback)
Nadene’s target market is in Randburg and Roodepoort, and she competes with various
201
other dress designers in nearby areas, as well as with big businesses such as Bride & Co
and The Bridal Couture in Rivonia. Although her dresses are more expensive than those
of Bride & Co, she has the competitive advantage that her designs are unique – each bride
can decide for herself what her dress should look like.
Although Nadene’s designs are original, she has to be aware of the latest trends in fashion
202
and overseas designs play an extremely important role in the choices of her customers.
The fabric, designs and trimmings of bridal gowns change constantly and Nadene has to
be aware of new methods of stitching and ironing. Her equipment also has to be of the
best quality, therefore she has to upgrade her sewing machines and over lockers regularly.
Nadene advertises on the internet and the name of her enterprise, her website and her
203
contact details are also displayed on her car. In addition, she displays some of her gowns
at various local wedding expos. However, most of her customers are referrals from
satisfied previous customers.
Multiple-choice questions
204
(1) Nadene Marx could be classified as an entrepreneur because she .
(a) did not display any signs of creativity or innovation
(b) took calculated risks
(c) managed the business without ensuring growth (d) started her own
enterprise
Choose the correct option:
(1) a, b, c
(2) b, c
(3) b, d
(4) a, b, c, d
(2) Nicky, who suggested that they should use off -cuts from the fabric to cover
ordinary shoes with the same fabric of which the wedding gown is made, could
be classified as a/an .
(1) intrapreneur
(2) entrepreneur
(3) small business manager
(4) franchisor
(3) Nadene registered New Romantics as a sole proprietorship. An advantage of a
formal enterprise is that Nadene.
(1) does not have to pay tax
(2) does not have to keep financial records
(3) has to pay tax
(4) has easier access to finance
Downloaded by Masilo Mohale ()
, lOMoARcPSD|4554453
BSM1501 – Study Guide Questions and Answers (+Feedback)
(4) Nadene used R100 000 of her savings to convert their double garage into a studio.
This could be regarded as an example of her_________.
(1) involvement
(2) commitment
(3) positive attitude and approach
(4) perseverance
(5) Nadene sketches the designs according to the brides’ preferences, works out
quotations for the dresses and cuts the fabric according to the designs. This could
be regarded as an example of her__________.
(1) involvement
(2) commitment
(3) positive attitude and approach
(4) perseverance
(6) Nadene applied for financing of R80 000 to buy more advanced sewing machines,
over lockers, office equipment and furniture. This could be regarded as an
example of her .
(1) creativity and innovative ability
(2) perseverance
(3) positive attitude and approach
(4) willingness to take risks
(7) The opening of a small shop that sells accessories such as veils, jewellery and
underwear could be regarded as an example of Nadene’s.
(1) creativity and innovative ability
(2) perseverance
(3) positive attitude and approach
(4) willingness to take risks
(8) Owing to the appointment of the additional staff members Nadene’s premises
became far too small and she bought their neighbours’ property. This is an
indication of __________.
(1) her general management skills
(2) New Romantics’ growth
(3) New Romantics’ survival
(4) her insight into profit and loss
(9) Although Nadene advertises on the internet, most of her customers are referrals
from satisfied previous customers. Her ability to __________would therefore
play an extremely important role in New Romantics’ success.
(1) maintain sound human relations
(2) carry on despite setbacks
(3) take calculated risks
(4) use her own money to establish the enterprise
Downloaded by Masilo Mohale ()
