4. Magda's flower business Magda Fiori has always loved flowers. When 18 years old, she left school and worked as an assistant florist. Then, three years later, she set up her own flower business. She is a sole trader, this type of organization is common for tlorists. She employs two part-time assistants: one who delivers flowers to customers in the morning, and one who helps her in the shop at busy times in the late afternoon. Both assistants work four hours a day, six days a week After a difficult start, Magda's business has been very successful for the last two years. Her customers are loyal, even if they cannot always find the flowers they want. Customers like her creativity, her sense of humour and the good advice that she gives. Magda would now hike to expand her business. She could join an international franchise such as Interflora. She likes the idea, but she knows that her stock control methods would have to change radically. She would need to adopt a "just-in-case" method of stock control, which Interflora would require to ensure that customers always find the flowers they want. Magda also fears that she cannot afford the necessary investment for storage and marketing She wonders whether a bank will loan her money. Magda's small business has only one source of revenue Magda has also considered three methods of external growth: a joint venture with a local wedding organizer a strategic alliance with a garden centre a merger with another florist. . a) Identify two variable costs for Magda's flower business. [2 marks] b) Explain the meaning of the sentence: "Magda's small business has only one source of revenue". [2 marks] c) Using Magda's flower business, distinguish between "joint venture and strategic alliance. [4 marks] ) Analyze two advantages for Magda of joining an international franchise such as Interflora (2 marks] C) Recommend to Magda one of the three methods of extemal growth that she has considered. [10 marks)