MNE2601 EXAM PACK

MNE2601 EXAM PACK UNIVERSITY EXAMINATIONS October/November 2020 MNE2601 Introduction to Entrepreneurship and Small Business Management 70 Marks Duration: 3 Hours This paper consists of twelve (12) pages. Instructions: (1) Submit your answers as a single document in PDF format. It is preferable for you to type your answers (Font: Arial 12) and then convert your document to PDF format for submission. However, if this is not possible, you may also write your answers down and scan them to a PDF file. Please write legibly. (2) Start with a cover page, stating the module code (MNE2601) and your student number. (3) This should be followed by your answers to the questions. Note that all the questions are compulsory. There are no elective questions. (4) There is no need for a table of contents, introduction, conclusion or list of references. Simply answer the questions asked. (5) Make sure that each question and subquestion is clearly numbered. (6) While you are not required to cite your sources, this does not mean that you can simply copy information from any source. You need to answer the questions in your own words. Plagiarism will not be tolerated and may result in disciplinary action, if detected. (7) Please ensure that you submit a declaration of honesty on myUnisa. (8) Please ensure that your PDF document is NOT encrypted to a “secured” mode and that it is NOT password-protected as these files cannot be marked. Virus-infected files will also not be marked. (9) Submit your answers in one PDF document by using the Assessment Info option on myUnisa. Read the following case study and answer the questions that follow Sakhepi Mighty Gwabeni, a law degree graduate from the University of South Africa, opened a law firm in central Pretoria in 2008. He graduated in 2006 and obtained admission as an attorney. When he opened his law firm, he felt that he did not have enough business experience, given that he was only admitted two years earlier and thought that he had to gain at least five years of experience before opening his own practice. Through reputation and professionalism Gwabeni Incorporated (GI) managed to grow within a short space of time. Sakhe had to quickly gather resources, such as office space and equipment, through the help of family members. His start-up costs were in the region of R140 000; and he acquired a loan of R80 000 from the National Youth Development Agency and used his savings and some family contributions. Sakhe had to hit the ground running although he felt that he was ill-prepared for the new challenge of having to compete with much more experienced opponents and skeptical clients. Sakhe approached a long-time friend and business associate, Lebogang, who was also an attorney, and other experienced attorneys for assistance and advise. GI did well against all odds owing to the determination of its founder and staff members. Sakhe faces many challenges daily as many South Africans still prefer to be represented by larger law firms. There are also difficulties when it comes to issues of late or nonpayment from clients, which affects the cashflow of the business. There are new regulations which compel law firm directors, like Sakhe, to follow a compulsory practice management course. Added to these requirements is the burden of adhering to laws covering tax, labour, occupational health and safety as well as other related business laws. In 2013, GI entered the transport business because of a need to expand the business, even though it was not their core business. GI entered the passenger transport sphere in the Eastern Cape and began running three bus operations, one of which is subsidised by the Eastern Cape road and Transport Department. The other one is as a result of a scholar transport contract with the Education Department and is expected to grow in the future. With an average turnover of R17 million per annum, GI employs a minimum of seven full-time employees. There are prospects for growths within the legal and transport industries and even beyond. Sakhe is a sports fanatic and loves his football, locally and internationally. He is currently exploring ways in which GI can serve as a football player’s agency as this is fast becoming a growing and lucrative line of business. Sakhe endeavoured to obtain FIFA accreditation and has become a licensed agent for international players. He wrote a few FIFA exams and still has a few more to complete. He hopes to venture into sports management; and intends to establish a sports management company that will manage all the contracts of its clients. 1. GI can be described as a … enterprise given its number of employees. 1 micro 2 very small 3 small 4 medium 2. Which type of competition did Sakhe describe as a challenge to his legal business? 1 direct 2 future 3 indirect 4 past 3. To enter the sports industry, Sakhe needs a … before he can be permitted to operate. 1 patent 2 registered company 3 license 4 trademark 4. Sakhe engaged in … which involves interacting with others and establishing partnerships. 1 sports management 2 transport 3 networking 4 legal contracts