BEE- GRADE 9

WORKSHEET 1.3

Student Name
Date Time
Location

Case Study 1- ALUCO LTD

Anwar is an entrepreneur dealing in aluminium doors and windows for the past 10 years.
To expand his business, he wants to involve his cousin who is in the same line of business
and form a company Aluco Ltd together with him. He is quite unsure about the
procedures involved.

Questions

(a)Give TWO advantages and TWO disadvantages that Anwar might get
by forming a company. (4 marks)
Advantage 1

Advantage 2

Advantage 3

Disadvantage 1

Disadvantage 2

Disadvantage 3

UNIT 1 – WORKSHEET 1.3 RANJEETA AWOTAR

 BEE- GRADE 9

(b)Explain to Anwar and his cousin the steps involved in the Formation
of a company (3 marks)
1.

2.

3.

(c) Explain to Anwar and his cousin the following terms: (3 marks)
(i) Share

(ii) Limited
Liability

(iii) Certificate of
incorporation

(d) Name two documents they would need to form the company (2 marks)
Document 1

Document 2

(e ) Name two types of company: ( 2 marks)

Type 1

Type 2

UNIT 1 – WORKSHEET 1.3 RANJEETA AWOTAR

 BEE- GRADE 9

Case Study 2- Black Cola

Ashvin has been able to save some money which he wants to invest in a business. He does
not want to undertake much risk. He has therefore been advised to enter into a Franchise
business. He has chosen to represent the world – famous soft drink Black Cola. He will set
up a small factory. All materials will be provided by the franchisor.

Questions

(a)Mention 2 features of a franchise business. (2 marks)

1

(b) Mention 2 ways in which Ashvin can benefit from a franchise

business. (2 marks)
1

(c ) Explain to Ashvin TWO limitations of a franchise in carrying out

business. (4 marks)
1

UNIT 1 – WORKSHEET 1.3 RANJEETA AWOTAR