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When an investor is not interested in owning their own​ business, why do they need to understand​ entrepreneurship?

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Answer 1

Understanding entrepreneurship is important for investors, as it helps them evaluate investment opportunities and make informed decisions.

Why an Investor Need to Understand Entrepreneurship?

Even if an investor is not interested in owning their own business, understanding entrepreneurship is still essential. It allows investors to assess the potential of entrepreneurial ventures they may invest in, evaluate the skills and capabilities of entrepreneurs, and make informed investment decisions.

Understanding entrepreneurship helps investors navigate the business landscape, identify innovative and profitable opportunities, and comprehend the risks and challenges associated with entrepreneurial ventures, thereby maximizing their chances of making successful investments.

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QUESTION 4: PRICING Based on your knowledge of Pricing Strategies, recommend a pricing mix that has the best pricing mix ice Mix 1: • Price MX 2 se Sale Price: $19,500 id-tier Sale Price: $24,55 lly-Loaded Sale Price: 4,999 Price Mix 2: Base Sale Price: $20,000 Mid-tier Sale Price: $25,000 Fully-Loaded Sale Price: $30,000 Price Mix 3: Base Sale Price: $22,000 Mid-tier Sale Price: $24,00 Fully-Loaded Sale Price: $28,999​

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Price Mix 2 is recommended as the best pricing mix strategy. It includes three price tiers: a base sale price of $20,000, a mid-tier sale price of $25,000, and a fully-loaded sale price of $30,000.

The best pricing mix

This pricing mix caters to different customer segments by offering varying levels of features and benefits at different price points. It allows customers to choose a product based on their budget and desired features, increasing the likelihood of conversion and customer satisfaction.

The balanced pricing structure provides options for both price-sensitive customers and those willing to pay more for additional features. Overall, Price Mix 2 maximizes revenue potential by attracting a wider customer base and potentially facilitating upselling opportunities.

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Assume the following taxpayer information: The taxpayer is a South African manufacturing company (not a small business corporation as defined) with a 31 March 2023 year of assessment. Calculate the recoupment on the disposal of the machine BELOW. Information pertaining to manufacturing machine: Events Sold Purchased Tax value at date of sale Date 30 December 2022 1 August 2020 Amount R 605 000 R 490 000 R 98 000
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The depreciation allowances allowed in prior years of  R533 665 (recoupment amount)The recoupment amount is included in taxable income.

An asset disposed of in the year of assessment (2022) for proceeds exceeding its tax written down value (TWDV) triggers a recoupment of depreciation allowances. The recoupment is calculated by deducting the TWDV from the proceeds, but limited to the sum of depreciation allowances allowed in respect of the asset less any amount that has been recouped in a prior year.

Manufacturing machine sold R605 000 Purchased R490 000 Tax value at date of sale R98 000Calculate recoupment on the disposal of the machine;

The machine's TWDV is R71 335; this is calculated by taking the original cost of R490 000 less the depreciation allowances allowed in prior years of R34 665.R605 000 (proceeds) - R71 335 (TWDV) = R533 665 (recoupment amount)The recoupment amount is included in taxable income.

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