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LSB2605 ASSIGNMENT 02 ANSWERS semester 1 2024. This document contains well answered and unique answers that will help you score a very good mark, contact 0/6/7/1/1/8/9/0/5/9 for further assistance.€2,68
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LSB2605 ASSIGNMENT 02 ANSWERS semester 1 2024. This document contains well answered and unique answers that will help you score a very good mark, contact 0/6/7/1/1/8/9/0/5/9 for further assistance.
LSB2605 ASSIGNMENT 02 ANSWERS
Samantha wants to open a clothing shop that sells unique designs to the public. She will need to buy machinery to manufacture the clothing. She decides that she wants to make the shop more inviting by opening a small coffee shop where the customers can enjoy refres...
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, Samantha wants to open a clothing shop that sells unique designs to
the public. She will need to buy machinery to manufacture the clothing.
She decides that she wants to make the shop more inviting by opening
a small coffee shop where the customers can enjoy refreshments and
snacks like cake and fruit salad. She does comprehensive calculations
and budget projections which reveal that her turnover in the first year
will be around R950 000. Assume that at this stage she will not be
employing anyone.
1. Which of the three most common business structures would be most suitable
for Samantha’s business? (2)
Samantha's business involves selling unique clothing designs along with operating a
small coffee shop. Since Samantha will not be employing anyone initially, the most
suitable business structure for her would likely be a sole proprietorship.
A sole proprietorship is the simplest form of business structure where the business is
owned and operated by a single individual. It offers simplicity in terms of registration,
management, and decision-making. Samantha will have full control over the
business and its operations. Additionally, as the sole owner, she will have the
flexibility to make decisions regarding the business's direction, finances, and day-to-
day activities.
In a sole proprietorship, Samantha will be personally liable for any debts or
obligations incurred by the business. However, given the relatively small scale of her
operations and the absence of employees, this may not pose a significant risk.
Overall, a sole proprietorship would be the most suitable business structure for
Samantha's clothing shop and coffee shop venture considering her current
circumstances and business objectives.
2. Will Samantha be required to apply for a business license for
either the clothing store or the coffee shop? Explain your answer.
(3)
In South Africa, Samantha would likely be required to apply for a business license for
both the clothing store and the coffee shop. Samantha's clothing store would require
a business license to operate legally. This is because any business entity operating
within South Africa, including retail establishments like clothing stores, typically
needs to obtain a general business license.
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