,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 marks]
Many new businesses fail within their first few years. Some of
the main reasons for business failure include:
1. Lack of Planning: Entrepreneurs often do not create
comprehensive business plans. Without proper planning,
it becomes difficult to forecast future challenges or make
informed decisions.
2. Poor Financial Management: Failure to manage cash flow,
budget properly, or separate personal and business
finances can result in financial collapse.
3. Inadequate Market Research: Entrepreneurs may not
fully understand their target market or the competitive
landscape, leading to poor product-market fit.
4. Weak Marketing Strategies: Without effective marketing,
potential customers may never become aware of the
business or its offerings.
, 5. Lack of Capital: Starting and sustaining a business
requires sufficient funding. Many businesses run out of
money before becoming profitable.
6. Poor Location: A business in an inaccessible or low-traffic
area may fail to attract enough customers.
7. Ignoring Customer Needs: Businesses that do not adapt
to feedback or changing customer demands can quickly
become irrelevant.
8. Overexpansion: Growing too quickly without a strong
foundation or resources can lead to logistical and
financial problems.
9. Lack of Experience and Skills: Entrepreneurs may lack
management, accounting, marketing, or technical skills
required to run a business effectively.
10. Economic Factors: External issues like inflation,
interest rates, pandemics, or political instability can
impact businesses negatively.
QUESTION 2
2.1 Discuss the role of Trade Unions in the economy of a
country.
[10 marks]
, Trade unions play a significant role in the economy by:
1. Protecting Workers’ Rights: They ensure fair wages, job
security, and safe working conditions.
2. Collective Bargaining: Trade unions negotiate with
employers on behalf of their members to improve
employment terms.
3. Reducing Inequality: By advocating for better pay and
benefits, unions help reduce income inequality.
4. Promoting Economic Stability: When workers are treated
fairly, labour disputes and strikes decrease, ensuring
smoother business operations.
5. Training and Education: Unions often provide training
opportunities, improving the productivity and
employability of workers.
6. Policy Advocacy: They influence labour laws and
economic policies to protect workers' interests.
7. Democratic Participation: Trade unions promote
democracy in the workplace and contribute to the
broader democratic processes in a country.
8. Social Dialogue: They provide a platform for
communication between workers, employers, and the
government.
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 marks]
Many new businesses fail within their first few years. Some of
the main reasons for business failure include:
1. Lack of Planning: Entrepreneurs often do not create
comprehensive business plans. Without proper planning,
it becomes difficult to forecast future challenges or make
informed decisions.
2. Poor Financial Management: Failure to manage cash flow,
budget properly, or separate personal and business
finances can result in financial collapse.
3. Inadequate Market Research: Entrepreneurs may not
fully understand their target market or the competitive
landscape, leading to poor product-market fit.
4. Weak Marketing Strategies: Without effective marketing,
potential customers may never become aware of the
business or its offerings.
, 5. Lack of Capital: Starting and sustaining a business
requires sufficient funding. Many businesses run out of
money before becoming profitable.
6. Poor Location: A business in an inaccessible or low-traffic
area may fail to attract enough customers.
7. Ignoring Customer Needs: Businesses that do not adapt
to feedback or changing customer demands can quickly
become irrelevant.
8. Overexpansion: Growing too quickly without a strong
foundation or resources can lead to logistical and
financial problems.
9. Lack of Experience and Skills: Entrepreneurs may lack
management, accounting, marketing, or technical skills
required to run a business effectively.
10. Economic Factors: External issues like inflation,
interest rates, pandemics, or political instability can
impact businesses negatively.
QUESTION 2
2.1 Discuss the role of Trade Unions in the economy of a
country.
[10 marks]
, Trade unions play a significant role in the economy by:
1. Protecting Workers’ Rights: They ensure fair wages, job
security, and safe working conditions.
2. Collective Bargaining: Trade unions negotiate with
employers on behalf of their members to improve
employment terms.
3. Reducing Inequality: By advocating for better pay and
benefits, unions help reduce income inequality.
4. Promoting Economic Stability: When workers are treated
fairly, labour disputes and strikes decrease, ensuring
smoother business operations.
5. Training and Education: Unions often provide training
opportunities, improving the productivity and
employability of workers.
6. Policy Advocacy: They influence labour laws and
economic policies to protect workers' interests.
7. Democratic Participation: Trade unions promote
democracy in the workplace and contribute to the
broader democratic processes in a country.
8. Social Dialogue: They provide a platform for
communication between workers, employers, and the
government.
