Follow the instructions for each question.

Question $1$

Consider the following scenario and then answer the questions that follow.

Lethabo, a personal trainer, and Anika, an IT specialist, saw a gap in the market to create an AI$-$

powered personalised fitness coaching platform. The idea is that customers will sign up for the

platform and complete a comprehensive health assessment. Al will analyse the collected data and

generate personalised fitness routines that evolve over time as the Al learns from the user's progress

and adjusts to their changing needs. After putting together, a business plan, Lethabo and Anika

approach a local bank to source funding to buy computers and equipment and pay salaries for an $A$

specialist, a videographer and customer service rep. They also received a R$50000$ investment from

Lethabo's uncle who, despite not having any knowledge of fitness or technology, believes in his

nephew's entrepreneurial spirit and passion.

In answering the questions below, consider the following:

Maintain a balance between theory from the prescribed text and application from the

scenario;

$,$ Conduct additional research from credible sources, which must be referenced;

Paraphrase and explain concepts in your own words.

Q$\mathrm{.}1\mathrm{.}1$ Identify and discuss the specific resources, or factors of production, Lethabo and

Anika will need for their new venture.

Q$\mathrm{.}1\mathrm{.}2$ Assess the implications for Lethabo and Anika if they lived in a command economy

versus a market economy.

Q$\mathrm{.}1\mathrm{.}3$ Differentiate between an opportunity and necessity entrepreneur, with application

to the scenario. Be sure to identify which type $($opportunity or necessity$)$ relates to

the scenario.

Q$\mathrm{.}1\mathrm{.}4$ Recommend a suitable legal form of business for the new venture proposed in the

scenario. Justify your choice.

Q$\mathrm{.}1\mathrm{.}5$ Discuss the internal and external stakeholders in a business plan, with application to

the scenario.