Introduction
Good day learners , so today's topic is the Avenues of acquiring a business. This is one of the topics that will help you build your future if you have plans of being an Entrepreneur one day.
The Avenues of acquiring a business is when entrepreneur finds it easy to purchase an existing business as a way of growing their capital income and having to make easy and quicker profits other than starting a business from scratch. Since we all know that we are living in a changing world and we need to adapt to ever change that takes place. purchasing an existing business makes it very easy for a business to adapt to those changes because of its Goodwill, and Market research.
Task
12 SEPTEMBER 2022
TERM 3
BUSINESS STUDIES
CLASS ACTIVITY
GRADE 11A
QUESTION 1
Choose the correct answer and write the letter (A-D) next to the question number.
1.1 Which of the following is a disadvantage of outsourcing:
- Outsourcing allows a business to focus on those activities that are more important.
- Seasonal or cyclical demands can be met.
- The workforce is more flexible
- Confidentiality is at risk.
1.2 As a lessee, you:
- May pay charges at any time.
- Can make alterations without consent.
- Can make alterations with consent.
- Don’t have to pay charges. (2x2=4)
QUESTION 2
Match each of the explanations in Column A with the terms in Column B :
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COLUMN A |
COLUMN B |
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2.1 A business arrangement that allows for the use of an asset for a specific period at a specific cost |
A. Outsourcing |
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2.2 Giving out specific tasks to other businesses to perform on your behalf |
B. Franchise |
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2.3 Unable to pay running expenses due to a cash shortage |
C. Illiquid |
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2.4 Payment for the use of a business idea |
D. Leasing |
(4X2=8)
QUESTION 3
Define the following terms:
3.1 Lessee
3.2 Royalty
3.3 Goodwill
3.4 Franchisor
Read the scenario below and answer the questions that follows
Cape Fried Chicken (CFC) holdings aids prospective franchisees by preparing finance applications, identifying suitable sites, as well as initial and ongoing training and support. All franchisees are required to complete a five-day training program that covers day-to-day operations, staffing, stock control, marketing, and management skills.
According to its latest franchising data, the total estimated initial cost for a standard CFC-outlet of 80-100 sqm is R700 000. This amount includes a franchise joining fee/deposit of R190,000.
The total cost makes provision for store design, staff training, and launch promotion materials during opening and support from head office from day of opening.
Like other Famous Brand-owned restaurants, franchisees are also expected to pay 5% of their turnover in management fees and 3% of their turnover in royalties.
CFC holdings have a contract with Mr. T foods to deliver online orders. This service is available to all franchisees.
3.5 Define the term franchisee
3.6 Identify the advantages and disadvantages of a franchise for the franchisee
3.7 Outline the advantages of a franchise to the franchisor
3.8 CFC is known as the …………………………...
3.9 Identify the type of business Mr. T foods is to CFC
3.10 Explain two advantages of the business identified in question 5 for CFC
Process
STEP 1
-The learners will have to take out their handouts, after that they take out their textbooks and classwork books.
STEP 2
-The learners will turn on the page where the activity is in
STEP 3
-The whole class will read the questions as a way of making everyone understand
STEP 4
-Once they have read they will then start to answer on their work books
STEP 5
-When they done they will hand them over to me to mark them
STEP 6
-We will do remedial work together, by asking them the same question and they will answer and they will be written on the board.
Evaluation
12 SEPTEMBER 2022
TERM 3
BUSINESS STUDIES
REMEDIAL WORK
GRADE 11A
QUESTION 1
1.1 d
1.2 c
QUESTION 2
2.1 D
2.2 A
2.3 C
2.4 B
QUESTION 3
3.1 Lessee- The person who will use the in return for an agreed amount
3.2 Royalty- A percentage of sales that is paid to the owner of the business idea or franchise
3.3 Goodwill- The amount of money a business owner wants for the good trade name he or she has built up, the customer base and the branding of the business, etc.
3.4 Franchisor- - The person who sells the right to trade in the products or services.
Here are some of the notes that will help you understand the lesson better:
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RESOURCES
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Paper based resources
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Digital resources
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INTRODUCTION |
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Conclusion
After explaining to them I will ask questions based on the knowledge I have poured to them
I will then give them a class work
We will go through the classwork together and they will do remedial work if they did not get some answers correct