Question 3

Laila. Gumra and Saif are looking to create a brand-new company, mainly to trade with vegetables and fruits. They want to take advantage of the upcoming month of Ramadan where the sale of fruits such as watermelon would be at the peak for the year. They are approximately one month away from the month of Ramadan, and they do not have the time to create a brand-new company from scratch.

Saif has now pitched an idea of using an off the shelf company rather than to create a new company.

(a) Briefly describe, what is an off the shelf company. (2 marks)

(b) What benefits would Saif and the team have, if they are to use an off the shelf company rather than to create a new company. (6 marks)

(c) Gumra is not convinced that this is the best course of action. Assume the role of Gumra and illustrate to the team how an off the shelf company, may not be the ideal solution. (7 marks)