QUESTION 4: MISCELLANEOUS QUESTIONS  Answer only TWO of the THREE questions. Number your work clearly and answer in bullet form.  4.1  Highlight THREE challenges of starting a company versus other forms of ownership  (6)  4.2  Discuss the advantages of a lease agreement for the  lessee.  (6)  4.3  Outline the steps that have to be taken before a company may start doing business.  (8)  4.4  Devise the issues that must be addressed in the Outsource agreement.  (8)  4.5  Discuss FOUR theories in change management.  (12)    TOTAL FOR QUESTION 4 [40]   TOTAL FOR SECTION B  [80] 

SECTION B: CONTEXTUAL QUESTIONS QUESTION 2:  BUSINESS VENTURES  Answer only TWO of the THREE questions. Number your work clearly and answer in bullet form.  2.1  Read the case study below and answer the questions that follow:      Hyper Hand Boards (HHB)  Lulama Lebese, an avid surfer, saw a gap in the market to sell small hand surfboards.  This is particularly popular among surfers who are travelling a lot. No more bulky surfboards to worry about – the Hyper Hand Board easily fits into your suitcase! As a sole trader,  Lulama currently does everything himself, but he is considering various options in order to expand his business.    2.1.1  Explain THREE disadvantages of HHB’s current form of ownership.  (6)  2.1.2  Lulama and his friend Keegan are considering forming a partnership.    Propose to them in TABLE format what the benefits of starting a public company as opposed to a partnership are.  (8)  2.1.3  Lulama might decide to franchise HHB.  Identify and explain the THREE documents that are important to both the Franchisor and Franchisee.  (9)  2.1.4  Lulama wants to outsource HHB’s advertising to Martha’s Marketing. Suggest FOUR advantages outsourcing will have for HHB.  (8)  2.1.5  Give ONE example of a State owned company.  (1)  2.1.6  Explain the contractual implication of the lease agreement to Lulama.  (8)    TOTAL FOR QUESTION 2  [40]    OR  

QUESTION 1.3: CHOOSE THE CORRECT ANSWER IN BRACKETS  Choose the correct word in the brackets.  1.3.1.  A document used to invite the public to buy shares and debentures in a company is called a (prospectus / advertisement).  (2) 

1.1.5  Cutting jobs, eliminating product lines or announcing plant layoffs in an attempt to put businesses in a better financial position.  (2)      [10]

1.3.4  (consequences/ opinions of others) is decisions based on the question: “What would other people think if they found out what I did?”    (2) 

1.1.4  Avoiding unethical behaviour such as dumping waste in rivers.  (2) 

  1.3.3  It is essential to employ people who think (innovatively/routinely).  (2) 

1.1.3  Individuals suggest new ideas randomly that are written on a flip chart in a larger group without being criticized:  (2) 

1.3.5  A (Company/Co-operative) is an autonomous association of persons who are united voluntarily to meet their common economic needs.  (2)      [10]   TOTAL FOR SECTION A: [30]

2.3 Bhala ubulili obubili obubona kuyi khathuni. (4)