QUESTION 1 ( 20 marks)

Analyse the advertisement below and answer the questions that follow.

1.1Mrs Tanaya is interested in buying the business advertised above. Advise her on the pros and cons of buying the business.(10)

1.2Advise Mrs Tanaya on five traps to avoid when buying an existing business(10)

QUESTION 2 (20 marks)

Read the case below and answer the questions that follow.

NIKE GO FlyEase case

The ability to tie our shoes may be something most people take for granted—but for many of us, lacing up can be a real pain. Nike aims to fix that problem with the GO FlyEase ($120), a shoe that wearers with disabilities can slip on and off, hands-free. A hinge in the middle allows the shoe to bend open, while a midsole tensioner band, crafted from surgical tubing, snaps it back into place. The shoe could help people with a wide range of conditions, from flexibility issues and arthritis to visual impairments. “The human experience is vast and broad—why aren’t we providing solutions that help people dress themselves independently?” asks Sarah Reinertsen, a Paralympic athlete and member of Nike’s innovation team who worked on prototypes of the shoe. “Nike wants to make sports more accessible, and this is a part of that.” —Jesse Will

2.1.An entrepreneur needs to be creative and innovative in order to cope and overcome unforeseen and foreseen obstacles.” Discuss this statement in light of the case above.(10)

2.2Discuss the four major types of Innovation (8).Which type of innovation does the Nike GO FlyEase represent? Justify your answer. (2)(10)

QUESTION 3 (10 marks)

Mr Cele is an upcoming entrepreneur from Pondoland, KwaZulu Natal, South Africa. He is considering starting a cattle ranging business.

3.1Outline five legal aspects Mr. Cele should consider on the normal course of running the business(10)

∞End