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Chapter 1:Introduction to business environment (1.Establishment:Sole…
Chapter 1:Introduction to business environment
3.Injury of an employee
-One of the employees got injured by the explosion of a gas bottle
-James after providing attention to the matter he held a meeting with Peter to discuss how such measures can be prevented going forward
James remembered that he learned about governance during his entrepreneurial course and decided to do an research on governance which included risk management that be helpful in preventing or detecting such events from occurring
-The business made a significant success
-At the end of James's studies they decided to settle from Partnership to a Private company
-Private company was formed and financial obligations of both shareholders was limited
-They both Peter Mahlangu and James Khumalo reached a consensus and formed a Partnership
-Mr Mahlangu admired him abd proposed that they should be patners
2.Transition from Sole proprietor to Partnership
1.Establishment:Sole proprieto
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-He took a loan from his lecturer Mr Peter Mahlangu and he also agreed to provide it to him because he admired the potential of his business
-He managed to discover the gap in the market by realising that businesses around the campus sell food to the students at an expensive price
-He subsequently opened the business named and started selling food
-James was a single owner who was doing all the business functions solely
-He went to attend a short free course availed by the university to obtain entrepreneurial qualities
-James got an advice from Peter that he should employ an assistant,as he did,it enabled the business to open for more hours
-A second year student who had a bursary that could not cover all the academic expenses his name was James Khumalo
-He managed to pay back the loan that he took from Peter
4.expansion of Production and Staff
-After strategic planning meeting of both partners,they realised that they should increase resources by means of expertise and external funding
-Subsequently James became the CEO due to his more understanding of the business and for being the starter,also peter resigned as a lecturer to be a COO and the other person was also employed for positions of HR
-The business also expanded by renting a centralised plant where for food production took place
-A chef was employed as the director of food and beverages director his name was Paul Smith
5.Transition from Private company to Public company
-After a meeting of directors the CFO proposed a conversion of public company to achieve external funding by issuing shares to the public
-Outcomes of converting to public company paid off as the business recognised developments and more profitability
5.Appointment of internal auditing division at Siyafunda LTD
-James attended a soccer match where the business was very business and out of curiosity he went to the kiosk to take a look on the financial statements and realised that although it was busy the business was still making a loss according to the financial books
-The CFO was told to investigate the matter and as he did,he realised that thr tecently hired financial manager has been stealing money from the business
-The boars realised that there is a lack of internal control and they need to appoint an internal auditing division to protect themselves from risk and improve the internal control process