Business Plan

DEBORAH.O.OGOCHUKWU

201318113

TOURISM DEVELOPMENT 3A

TOW3A11

ASSIGNMENT: - FROZEN ASSETS

24-03-2015

TABLE OF CONTENT.

INTRODUCTION……………………………………………………3

OPPOTUNUITY COST……………………………………………. 3

SOURCE OF FINANCE

* OWNERS COST………………………………………………..3

* PLOUGHING BACK OF PROFIT…………………………………4

* BANK LOANS……………………………………………….4

* SHARES……………………………………………..5

* DEBENTURE……………………………………………….5

QUESTION2……………………………………………………………..6-8

QUESTION3

* ECONOMICS OF SCALE………………………………………8-10

QUESTION4……………………………………………………….10-11

QUESTION5

* ALLOCATIVE MECHANISM……………………………………11-12

INTRODUCTION

Las paletas artisan lollies is an ice cream business which started in South Africa by a Spanish woman named Diana Chavarro. The lollies are made of 100% real fruit and fresh dairy with no additives or colorant. They have fruit trucks in Johannesburg and it is also available in Durban (KZN). The owners of this establishment are thinking of expanding their market share and growing their business around South Africa and also in Cuba. Now they have come up with ideas or questions that needs solutions that may or may not help the business, but they are willing to take risks. The solutions to the business questions are as follows:

QUESTION 1.

A. Opportunity costs

This are those costs that arise from making one specific choice of a way to use your resources and dropping all the other choices you could have made. It is also a benefit, profits or value of something else.  Supposing the best choice is made, it is the "cost" gained by not enjoying the benefit that would be had by taking the second best choice available. Since every resources (land, money, time etc.) can be put to alternative uses, every action, choice and decision has an associated opportunity cost. It is a key concept in economies, and has been known to explain "the basic relationship between scarcity and choice. It makes sure that scarce resources are used well. Opportunity...