Martin and Lorraine are Engineering graduates who have struggled to find employment post university. They have both decided to use their savings to start a business. They have decided to start a small fruit and veggie business in their area. Given that they live in a busy township, they are confident that their business will be a success as there is a market for it. Their biggest challenge however is their limited knowledge on business management and entrepreneurial skills and thus, requires you to play the advisory role for the business.
Martin and Lorraine are Engineering graduates who have struggled to find employment post
university. They have both decided to use their savings to start a business. They have decided to
start a small fruit and veggie business in their area. Given that they live in a busy township, they
are confident that their business will be a success as there is a market for it. Their biggest
challenge however is their limited knowledge on business management and entrepreneurial skills
and thus, requires you to play the advisory role for the business.
Q.1“They have both decided to use their savings to start a business”. Would you
say Martin and Lorraine are taking a calculated risk? Justify your answer.
Q.2. Identify the form of ownership that Martin and Lorraine should enter into when registering their business. Justify your choice.
Q.3.With reference to their business, discuss M&L potential contribution to the South African economy.
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