Entrepreneurship Case Study: Bake'd Bliss

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Questions and Answers

What was Jabu's primary financial concern prior to receiving help from Lindiwe?

University expenses and paying rent (correct)

Starting his own business

Healthcare costs

Unexpected vehicle expenses

What amount did Lindiwe offer to loan Jabu to cover his rent?

R 10,000 (correct)

R 5,000

R 15,000

R 8,000

What is the initial business venture that Jabu and Lindiwe chose to pursue?

Traditional bakery (correct)

Catering service

Online grocery store

Cannabis and hemp products

What was Lindiwe's reason for being cautious about registering a closed corporation?

She was concerned about protecting her personal assets Signup and view all the answers

When did Lindiwe and Jabu officially open their bakery, Bake'd Bliss?

20 July 2024 Signup and view all the answers

How much inheritance did Lindiwe receive from her mother to finance the bakery?

R 2 million Signup and view all the answers

What was Jabu studying when he received advice about registering a closed corporation?

Law Signup and view all the answers

What was the long-term vision for Bake'd Bliss regarding product offerings?

To introduce cannabis products at a later stage Signup and view all the answers

What characterizes original acquisition in relation to property ownership?

It results in ownership irrespective of the predecessor's legal claim. Signup and view all the answers

What is an example of occupatio in property law?

Catching fish in the ocean without an owner. Signup and view all the answers

Which statement about accessio is correct?

It results in the accessory becoming part of the principal property. Signup and view all the answers

How did Lindiwe initially acquire her VW Polo?

She leased it and later decided to purchase it. Signup and view all the answers

What is the significance of Lindiwe purchasing a female Merino sheep?

It allowed her to explore sheep farming as an investment opportunity. Signup and view all the answers

In property law, what distinguishes corporeal property from incorporeal property?

Corporeal property is tangible and touchable. Signup and view all the answers

Which option describes a scenario that would lead to original acquisition?

Someone finds and takes ownership of a lost bicycle. Signup and view all the answers

Why did Lindiwe choose to invest in sheep farming?

She was inspired by another farmer's success. Signup and view all the answers

What type of items were included in the stock of Bake'd Bliss?

Pastries, cakes, baking equipment, and more Signup and view all the answers

What community project did Lindiwe and Jabu start?

Regular donations of baked goods to a children's shelter Signup and view all the answers

What challenge did Lindiwe face when trying to purchase her property?

The current resident claimed a rightful ownership Signup and view all the answers

What potential issue did Jabu face with his land purchase ambitions?

Warnings of possible expropriation of the land Signup and view all the answers

Which item was NOT mentioned as being part of Bake'd Bliss's inventory?

Party supplies Signup and view all the answers

What financial outcome did Lindiwe and Jabu achieve after starting Bake'd Bliss?

They were able to purchase their own homes Signup and view all the answers

Before introducing cannabis products, what did Lindiwe and Jabu plan on reconsidering?

Their community donation project Signup and view all the answers

What item was specifically mentioned as part of the stock at Bake'd Bliss?

A cash register Signup and view all the answers

Which type of accession involves a movable object becoming part of an immovable property through human action?

Accession of movables to immovables Signup and view all the answers

What type of property acquisition involves using another's materials without consent, resulting in a new item that cannot return to its original form?

Manufacturing Signup and view all the answers

Which of the following is NOT a condition for acquiring ownership through prescription?

Possession must be with original owner's consent Signup and view all the answers

In the context of mixing and fusing, what happens to the ownership of the resulting new item?

Joint ownership is established by both parties Signup and view all the answers

What is required for expropriation to occur according to the Constitution?

Compensation to the property owner Signup and view all the answers

Which type of accession involves immovables naturally accumulating without human intervention?

Accession of immovables to immovables Signup and view all the answers

In the case of mixing solids from different owners, what is the legal implication?

Joint ownership of the mixed solid is established Signup and view all the answers

What characterizes open possession in the context of prescription?

Possession is expressed openly to the public Signup and view all the answers

What is a significant drawback of a sole proprietorship?

The business ceases to exist upon the owner's death or insolvency. Signup and view all the answers

Which statement about partnerships is true?

The property of the business belongs to the individual partners. Signup and view all the answers

In the context of partnerships, which is NOT a permissible form of agreement?

A partnership established without any agreements. Signup and view all the answers

What is one of the implications of the Companies Act 71 of 2008?

It alters the legal structure and liabilities of companies. Signup and view all the answers

Which feature distinguishes a sole proprietorship from a partnership?

A partnership must have at least two individuals. Signup and view all the answers

What is a common misunderstanding about partners' contributions in a partnership?

All partners must contribute equally in assets. Signup and view all the answers

Which of the following statements is correct regarding partnerships?

Partners can determine how profits are divided based on their contributions. Signup and view all the answers

What is not a benefit of having a partnership as opposed to a sole proprietorship?

Complete independence in business decisions. Signup and view all the answers

Study Notes

Case Study Overview

Lindiwe and Jabu are long-time friends, facing personal and professional turning points.
Jabu, in financial distress due to unexpected university expenses, receives a loan of R 10,000 from Lindiwe to cover rent.
Startup vision: Opening "Bake'd Bliss," a trendy bakery in Bloemfontein, focusing initially on traditional baked goods with plans to introduce cannabis products later.

Business Development

Lindiwe inherited R 2 million, providing initial capital for the bakery.
The decision to open a traditional bakery first is due to uncertainty around cannabis use and licensing in South Africa.
Bake'd Bliss opened on July 20, 2024, featuring various baking-related products and equipment.

Community Engagement

Lindiwe and Jabu commit to donating baked goods to a local children's shelter, reflecting their values of giving back.
Their involvement in community support may change once cannabis products are introduced.

Personal Financial Milestones

Lindiwe aims to buy a property in Pentagon Park but faces legal challenges due to a current resident claiming rights to the property.
Jabu seeks vacant land for future cannabis cultivation but receives warnings about potential expropriation.

Financial Choices and Investments

Jabu purchases an Omoda C5 GT car, celebrating financial success.
Lindiwe opts for a more cautious financial route by leasing and later purchasing a second-hand VW Polo.
Lindiwe explores sheep farming investments, inspired by local success stories, purchasing a female Merino sheep for R 3,500.

Legal Considerations in Property Law

Property includes both movable and immovable assets, with two acquisition types: original and derivative.
Original acquisition includes occupatio (gaining control over unowned property) and accessio (combining corporeal things).
Expropriation allows government to claim property for public use without owner consent, compensated for loss.

Business Entity Structures

Understanding the types of business enterprises: sole proprietorships, partnerships, close corporations, and companies.
Sole proprietorship: simplest structure, single owner fully liable for debts; business terminates upon owner’s death or insolvency.
Partnerships: agreements between two or more contributors; assets belong to the partnership, profit distribution can vary by agreement.

Partnership Legalities

No maximum on the number of partners, though large partnerships may face complications.
Partners do not have to contribute equally or share profits equally; agreements can determine profit-sharing proportions.
Both natural and juristic persons possess legal personality, recognized in partnerships.

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Description

Explore the entrepreneurship journey of Lindiwe and Jabu as they navigate personal challenges and business ventures. This case study highlights how financial decisions and innovative ideas shape their bakery startup, 'Bake'd Bliss', in Bloemfontein. Delve into the impact of friendship and financial planning in their entrepreneurial story.