Grade 11 · CAPS

Grade 11 Business Ventures

Business Studies practice questions and a worked example

Grade 11 Business Ventures covers the practical side of getting a venture off the ground — comparing forms of ownership, planning with tools like a Gantt chart, and weighing up funding options. Practice questions work through real scenarios: applying the factors that influence a funding decision, reading and building a project timeline, and comparing a private company against a public one.

Worked example

MUZI PROPERTIES (MP) Muzi Properties is a real estate business. MP buys farms and allows the user to utilise the property with regular payment according to their contract. Recently, MP also bought an existing butchery. 2.3.2 Explain the reason why entrepreneurs may decide to purchase an existing business.

Answer & explanation

It is easier to raise finance if the business already has a good history/image. There is immediate cash flow as customers are already established. Market research has already been done, distribution/supply links and staff are already established, and existing employees/managers already have experience to share, with many business problems already solved.

Entrepreneurs may choose to buy an existing business for several reasons. First, it is often easier to secure financing because the business has an established history and reputation. Second, there is immediate cash flow since the business already has a customer base. Third, market research, distribution, and supply chains are already in place, reducing initial setup time and effort. Additionally, experienced employees and managers are already part of the business, which can help in solving problems and ensuring smooth operations. These factors make buying an existing business an attractive option for entrepreneurs.

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Business Ventures

Question 1 of 3

1.1.1 A/An ... is a person who starts and manages his/her own business.

AA venture capitalistBB executive managerCC entrepreneurDD director

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Common mistakes

Listing funding factors without linking them to the scenario given, and confusing the requirements of a private company with those of a public company.