SECTION A

$[100$ MARKS$]$

Read the case study below and answer ALL the questions in this section.

KFC$\text{'}$s Colonel Sanders

Colonel Harland Sanders was born in $1890$ in Henryville, Indiana. When he was six years old, his father passed away leaving Sanders to cook and care for his siblings. In seventh grade, he dropped out of school and left home to work as a farmhand. At $16,$ he faked his age to enlist in the United States army. After being honourably discharged a year later, he got hired by the railway as a labourer. In $1920,$ he founded a ferry boat company. Later, he tried cashing in his ferry boat business to create a lamp manufacturing company, only to find out that another company already sold a better version of his lamp.

At the age of $40,$ he began selling chicken dishes in a service station. He later bought a motel which burnt to the ground along with his restaurant. Out of sheer determination, he rebuilt and ran a new motel until World War II forced him to close it down. Following the war, he tried to franchise his restaurant. His recipe was however rejected $1,009$ times before anyone accepted it$.$ He however continued running his restaurant which boomed until it was crippled when an interstate opened nearby. Sanders then sold it for two million dollars and finally pursued his dream of spreading KFC franchises and hiring KFC workers across the country.

In current times, Sanders remains central in KFC$\text{'}$s branding and his face still appears in their logo$.$ His beard, white suit and western string tie continue to symbolise delicious country fried chicken all over the world. At age $90,$ Sanders passed away from pneumonia. At that time, there were around $6,000KFC$ locations in $48$ countries. By $2013,$ there were an estimated $18,000$ KFC locations in $118$ countries. KFC continues to expand internationally. We can all learn from Sander's story. Despite his business being negatively impacted by the Great Depression, fires and World War II$,$ he still created one of the largest fast$-$food chains in the world. He did not allow failures, setbacks and misfortunes to defeat him.

QUESTION $1$

$(25$ Marks$)$

You are interested in establishing a KFC franchise in your area. Drawing from your knowledge of franchising, elaborate on the steps you will take in establishing a KFC franchise in your area.

QUESTION $2$

$(25$ Marks$)$

Colonel Harland Sanders has been described as a visionary entrepreneur. Citing relevant examples from the extract, discuss the personal characteristics of entrepreneurs.

QUESTION $3$

$(25$ Marks$)$

You live in an area where you believe that a fried chicken fast food shop will thrive. However, before establishing the business, you want to ascertain that this idea is feasible and viable. Elaborate on how you will establish the feasibility and viability of the fried chicken fast food shop idea.

QUESTION $4$

$(25$ Marks$)$

Your colleague is in the process of setting up a small shop to sell fried and grilled chicken but is unsure of whether to set up the business as a sole proprietorship or as a partnership. Advise him$/$her on the business form that you think will be best suited for this business and suitably justify why this form rather than the other will be the most suitable for the business.