All examples must be practical in nature i$.$ it must demonstrate independart knowledge of the student.

Thando and Ayanda, both entreprencurs based in Durban, have identified a lucrative opportunity to start a vending machine business in response to the growing demand for hygiene products. Their business will focus on selling assential health items such as wet wipes, masks, and hand sanitiser through vending machines strategically placed outside major shopping mals in Durban. These locations will target high$-$traffic areas, including malls, ensuring they cater to the needs al both local shoppers and tourists.

Thando recently invested in a fleet of modem, cashless vending machines designed for easy access and convenience. His role in the partnership involves the full management of these machines, including securing placement agreements with shopping mal management, installation, and regular maintenance. He will oversee the day$-$to$-$day operations of the vending machines, ensuring they function efficiently and are serviced when necessary. Thando has also commited to dealing with the capital expenditure for acquiring the machines, and bearing the cost of any potential repairs or upgrades needed to keep them operasional.

Ayanda is an established wholesaler who has been supplying personal care and hygiene products to businesses across Durban. She will take charge of supplying the vending machines with high$-$demand products, including branded wet wipes, face masks, and hand sanitiser.Ayanda's responsibility is to ensure that the machines remain well$-$stocked, maintain a consistent supply chain, and source quality products that meet the necessary Scuth African safety and tygene standards. She will negofate with manufacturers to secure competitive priong, ensuning the business maintains proftable margins.

To formaliscther business relationship, Thando and Ayanda agree on a revenue$-$shaning model. The profits generated from sales at the wending machines will be divised equally $(50150)$ between the two partrers atter covering operational costs, including restocking, machine maintenance, and rental fees for space outside the malls. Ayanca will invoice Thando monthly for the cost of the supplies, while Thando will provide a detaled breakdown of machine sales and operatoral expenses. Any excess funds will be spit evenly at the end of each month.

$($Singh $2024)$

QUESTION $1$

$(25$ Marks$)$ inderitanaing of the lem d comact.