Question 4 (Marks: 30) Lorraine has received a lump sum of R500 000.00 from her retirement fund. She intends to use these funds to start a student accommodation business. In order to start this business, Lorraine would need approximately R1 million, funds are needed for building the students accommodation apartments and to register with various regulatory bodies. She has to source additional funding in order to realise this dream. In the business plan, Lorraine has outlined the following: Accommodation will be offered ONLY to students in Cape Town, Johannesburg, Mpumalanga and Polokwane. ONLY females will be approved to reside in these houses, between the age of 18 - 35. Marketing of the business will be done on community Radio stations only at the four mentioned cities. It is going to be a family business, Friends and relatives are in support of the idea but are not able to support the business financially.

Q.4.1 Identify the TWO basis or Criteria for segmentation referred to in the above scenario. Justify your choice. (6)

Q.4.2 Suggest any TWO sources of finance that Lorraine should consider. Justify your choice. Tip: you will be awarded marks for theory and justification (8)

Q.4.3 Discuss ANY TWO labour legislations that applies to and will impact Lorraines business. Provide examples to support your answer. Tip: You will be awarded two marks for theory and three marks for use of examples in relation to how the legislation applies/impacts Lorraines business. You will be awarded five marks per legislation to a maximum of 10 marks. (10)

Q.4.4 There are three types of Market coverage. Explain the type of market coverage applicable to Lorraines business. Justify your answer. (6)

19; 20; 21 2021 The Independent Institute of Education (Pty) Ltd 2021 Page 7 of 8 Tip: Your justification should include the description of the market coverage identified and the rationale behind your selection