Question 1: Define the term 'business activity'.

Answer: Business activity involves producing goods or providing services to meet the needs and wants of customers.

Question 2: Give two examples of different types of businesses.

Answer: Examples include a local bakery and an online clothing store.

Question 3: Explain why a business needs a clear plan before starting.

Answer: A business needs a clear plan to set goals, organize resources, and identify how to make a profit, which helps it stay on track and succeed.

Question 4: Identify three factors a business should consider when choosing a location.

Answer: Factors include customer accessibility, competition in the area, and costs such as rent and utilities.

Question 5: Describe what a business plan typically includes.

Answer: A business plan usually includes the business's aims, target market, products or services, marketing strategies, and financial forecasts.

Question 6: Sketch a simple layout for a small shop interior that includes a checkout counter, shelves for products, and a display area. Label each part.

Answer: A correct sketch would show a rectangular shop space with a checkout counter near the entrance, shelves along the walls or in the center for products, and a designated display area for special items. Labels should clearly identify each part.

Question 7: List two advantages of starting a small business.

Answer: Advantages include being your own boss and having the flexibility to make decisions quickly.

Question 8: List two disadvantages of starting a small business.

Answer: Disadvantages include financial risk and the possibility of irregular income.

Question 9: Imagine you want to open a new fruit shop. Write three questions you should ask yourself during planning.

Answer: Questions could include: Who is my target customer? How much money do I need to start? Where is the best location for the shop?

Question 10: Explain the importance of understanding your target market when planning a new business.

Answer: Understanding your target market helps you offer products or services that customers want, increasing the chances of success.