How often Establishing a business is asked

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The questions

1. Oct/Nov 2018, Q141 mark · multiple choice

   This section deals with establishing a business. Considering the legal perspective on selecting a business form, which of the following is identified as the most important consideration: (1) whether the enterprise is able to transfer its shares, (2) whether the enterprise will possess legal personality, (3) the extent of control or management authority the entrepreneur can exercise over the business's activities, or (4) the potential the business has for acquiring capital?

2. Oct/Nov 2018, Q151 mark · multiple choice

   This section deals with establishing a business. MXit is a lifestyle company known for its disruptive technology, offering services such as free instant messaging. In which section of MXit's business plan would you expect to find a description of the company's 'key players', including active investors, the management team, and directors? Choose from: (1) marketing plan, (2) products and/or services, (3) general company description, or (4) management plan.

3. Oct/Nov 2018, Q161 mark · multiple choice

   This section deals with establishing a business. Still considering MXit as a lifestyle company offering free instant messaging among other services, in which section of its business plan would the company's revenue and expense projections be included: (1) the management plan, (2) the operating plan, (3) the general company description, or (4) the financial plan?

4. Oct/Nov 2018, Q171 mark · multiple choice

   This section deals with establishing a business. Lizzy, a writer, has established her own publishing company called Book&Beyond, choosing to register it as a private company. Which of the following statements correctly describes a characteristic of a private company such as Book&Beyond: (1) it must have at least seven shareholders upon registration, (2) its registered name must include the words '(Pty) Ltd', so that the company's name reads 'Book&Beyond (Pty) Ltd', (3) its members will share management and control of the business equally, or (4) choosing this type of enterprise minimises the legal formalities Book&Beyond must comply with?

5. Oct/Nov 2018, Q181 mark · multiple choice

   This section deals with establishing a business. To secure the necessary bank finance and attract investment funds for starting Book&Beyond, Lizzy needs to prepare a particular document. Which one is it: (1) a memorandum of agreement, (2) an article of association, (3) a contract, or (4) a business plan?

6. Oct/Nov 2018, Q191 mark · multiple choice

   This section deals with establishing a business. Transnet (SOC Ltd) serves as an example of which type of company: (1) personal-liability, (2) state-owned, (3) private, or (4) public?

7. Oct/Nov 2018, Q201 mark · multiple choice

   This section deals with establishing a business. From the perspective of customers, why would having a business plan be important for a company? Select the most accurate reason: (1) it assures customers that the business will still exist in three to five years' time, (2) it gives a clear understanding of the venture's mission and objectives, (3) it clarifies the expected return on investment, or (4) it fosters an understanding of the emerging culture of a young business.

8. May/Jun 2017, Q141 mark · multiple choice

   These multiple-choice items belong to the 'Establishing a Business' section of the May/June 2017 MNB1501/RMB151K paper. Two of them (15 and 16) refer to a short case study about a company called Legit, which is described as being aimed at young, fashion-conscious women aged 16 to 24 who shop on a shoestring budget and want trendy clothing. Decide which one of the following options represents a valid reason for drawing up a business plan: (1) to sell the business to other entrepreneurs; (2) to obtain bank financing; (3) to bypass strategic alliances with other companies; or (4) to avoid mergers and acquisitions.

9. May/Jun 2017, Q151 mark · multiple choice

   These multiple-choice items belong to the 'Establishing a Business' section of the May/June 2017 MNB1501/RMB151K paper. Two of them (15 and 16) refer to a short case study about a company called Legit, which is described as being aimed at young, fashion-conscious women aged 16 to 24 who shop on a shoestring budget and want trendy clothing. Given that Legit targets young, fashion-conscious women aged 16 to 24 who operate on a shoestring budget and offers them fashionable clothing, in which section of Legit's business plan would this description of its target market most likely appear?

10. May/Jun 2017, Q161 mark · multiple choice

    These multiple-choice items belong to the 'Establishing a Business' section of the May/June 2017 MNB1501/RMB151K paper. Two of them (15 and 16) refer to a short case study about a company called Legit, which is described as being aimed at young, fashion-conscious women aged 16 to 24 who shop on a shoestring budget and want trendy clothing. Considering the same Legit case study, identify in which section of the business plan Legit's name and physical location would be recorded.

11. May/Jun 2017, Q171 mark · multiple choice

    These multiple-choice items belong to the 'Establishing a Business' section of the May/June 2017 MNB1501/RMB151K paper. Two of them (15 and 16) refer to a short case study about a company called Legit, which is described as being aimed at young, fashion-conscious women aged 16 to 24 who shop on a shoestring budget and want trendy clothing. The entrepreneur George B. Boedecker, Jr developed the shoe brand Crocs Inc. Determine which type of company Crocs Inc exemplifies.

12. May/Jun 2017, Q181 mark · multiple choice

    These multiple-choice items belong to the 'Establishing a Business' section of the May/June 2017 MNB1501/RMB151K paper. Two of them (15 and 16) refer to a short case study about a company called Legit, which is described as being aimed at young, fashion-conscious women aged 16 to 24 who shop on a shoestring budget and want trendy clothing. A particular form of enterprise is designed to secure certain economic benefits for its members through joint action carried out on their behalf; the members run the enterprise democratically, and specific values must be upheld for the enterprise to continue existing. Identify which of the following terms best matches this description.

13. May/Jun 2017, Q191 mark · multiple choice

    These multiple-choice items belong to the 'Establishing a Business' section of the May/June 2017 MNB1501/RMB151K paper. Two of them (15 and 16) refer to a short case study about a company called Legit, which is described as being aimed at young, fashion-conscious women aged 16 to 24 who shop on a shoestring budget and want trendy clothing. Kabelo currently works for a large company that produces television shows for a local broadcaster, but he is keen to start his own production company and has begun the process of establishing this new business. He anticipates needing to employ at least 50 people, and because of the nature of the industry he expects the company's annual turnover to exceed R50 million. Determine which of the following would be the biggest consideration for Kabelo when deciding on the form of enterprise for his new business.

14. May/Jun 2017, Q201 mark · multiple choice

    These multiple-choice items belong to the 'Establishing a Business' section of the May/June 2017 MNB1501/RMB151K paper. Two of them (15 and 16) refer to a short case study about a company called Legit, which is described as being aimed at young, fashion-conscious women aged 16 to 24 who shop on a shoestring budget and want trendy clothing. Identify which one of the following statements correctly describes an advantage of a private business trust.

15. Oct/Nov 2015, Q141 mark · multiple choice

    Select the option that correctly identifies a reason for drawing up a business plan: (1) to avoid calculated risks; (2) to obtain bank financing; (3) to bypass strategic alliances with other companies; or (4) to avoid mergers and acquisitions.

16. Oct/Nov 2015, Q151 mark · multiple choice

    Background: the MXit concept was an innovation developed by Swist's Research and Development department. Herman Heunis evaluated MXit as a viable business opportunity and financed its start-up with his own money, some of which came from the sale of earlier start-up businesses he had founded; Heunis is described as a serial entrepreneur who has started several new ventures. With reference to the New Companies Act, choose the change that Heunis should be aware of: (1) the powers and responsibilities of directors will be increased; (2) the power and responsibilities of directors will be decreased; (3) the rights of shareholders to hold directors accountable and to remove directors have been limited; or (4) the burden of the office of director will be decreased as the duties and liabilities of directors have been limited.

17. Oct/Nov 2015, Q161 mark · multiple choice

    Continuing with Herman Heunis: his company's name ends with the words '(Pty) Ltd', which indicates it can be classified as which type of entity — (1) a private company; (2) a partnership; (3) a sole proprietorship; or (4) a co-operative society?

18. Oct/Nov 2015, Q171 mark · multiple choice

    Still regarding Herman Heunis's business plan: in which section will he identify the 'key role players' — the active investors, management team and directors — and cite the experience and competencies they possess? Choose from: (1) general company description; (2) operating plan; (3) executive summary; or (4) management plan.

19. Oct/Nov 2015, Q181 mark · multiple choice

    Red Square sells internationally and nationally branded cosmetics to middle- and upper-income men and women, and also offers services such as skin analysis, a beauty hotline, facials, waxing, manicures, pedicures and body treatments. In which component of the business plan would Red Square's description of its target market appear: (1) financial plan; (2) management plan; (3) operating plan; or (4) marketing plan?

20. Oct/Nov 2015, Q191 mark · multiple choice

    Thandi and Thomas wish to form a partnership to run their domestic cleaning services. Which statement correctly describes a partnership: (1) it is a contractual agreement between partners; (2) partnerships cannot be extended to juristic persons; (3) a partnership is a juristic personality; or (4) the partnership, and not the individual partners, is liable for the debts of the partnership?

21. Oct/Nov 2015, Q201 mark · multiple choice

    Which location factor would take priority for a newspaper publishing company: (1) proximity to the market; (2) proximity to suppliers; (3) proximity to raw materials; or (4) proximity to railroad facilities?