Bsm1501

Duration . 2 Hot.n

BSM1501

BUSINESS MANAGEMENT IA

October/November 2011

100 Marks

Thi• examln.tlon question paper Nmalna the property of the Unlveralty of South Africa and may not be removed from the eJuunln.tlon venue.

This examination paper oonslsts of 11 pages, including the front page. ANSWER ALL THE QUESTIONS

[TURNOVER)

READ THE CASE STUDY AND ANSWER ALL THE QUESTIONS THAT FOLLOW CASE STUDY: NEW ROMANTICS

Nadene Marx started New Romantics ten years ago in Bergbron, a small suburb 1n Northchff. Nadene 1s a qualified fashion designer who spec1ahses 1n making bndal gowns, bridesmaid's gowns, mother-of-the-bride outfits and couture evenrng gowns

After the birth of therr first child, Nadene and her husband decided that she should resign from her JOb She started her own enterprise and registered 1t as a sole proprretorsh1p After careful cons1derat1on, they decided that Nadene should rather work from home instead of payrng thousands of rands per month on rentrng a small space in a shopping mall Nadene contnbuted R100 000 of her savrngs to convert their double garage into a studio She also applied for a loan of RSO 000 to buy new sewing machines, overlockers and furrnture for the studio The studio consisted of a small reception and display area , a fitting room and a workshop for 2 seamstresses

Nadene's business became so popular that she could not accept all the orders anymore She had to employ another 2 seamstresses and she appointed Vera to do the administration for the business Adm1nistrat1on plays an extremely important role 1n this business, as the bndes must come to the studio for at least four fittings before the dresses can be finished New Romantics must therefore keep record of the dates of each brrde's fittings and of their wedding dates to ensure that the dresses are completed rn time. Vera had to handle the record-keeping, schedule all Nadene's appointments and answer the phone

Due to the appointment of the add1t1onal...