Question 1: Define the term 'business activity' and provide two examples of different types of business activities.

Answer: Business activity refers to any action undertaken by a business to produce goods or provide services aimed at earning profit. Examples include manufacturing products in a factory and providing consultancy services.

Question 2: Explain why a business needs a business plan before starting operations.

Answer: A business needs a business plan to set clear objectives, identify potential challenges, outline strategies, attract investors or loans, and guide decision-making during the startup phase.

Question 3: Identify three key components that should be included in a business plan.

Answer: Three key components are an executive summary, marketing strategy, and financial projections.

Question 4: Describe what a target market is and why it is important for a new business to identify one.

Answer: A target market is a specific group of consumers at whom a business aims its products or services. Identifying a target market helps the business tailor its marketing efforts and meet customer needs effectively.

Question 5: Sketch a simple layout of a business plan structure. Use labels to indicate sections such as 'Objectives', 'Market Analysis', 'Financial Plan', and 'Operations'.

Answer: A clear sketch would show a document divided into sections labeled 'Objectives', 'Market Analysis', 'Financial Plan', 'Operations', and possibly other sections like 'Marketing Strategy' and 'Management'.

Question 6: Explain the difference between a 'feasibility study' and a 'business plan'.

Answer: A feasibility study assesses whether a business idea is practical and likely to succeed, while a business plan is a detailed document outlining how the business will operate and achieve its objectives.

Question 7: Identify two internal factors and two external factors that can influence the success of a business venture.

Answer: Internal factors include management skills and financial resources. External factors include market demand and economic conditions.

Question 8: Draw a basic flowchart showing the steps involved in starting a new business, from idea generation to launch.

Answer: A correct flowchart would include steps such as 'Generate Business Idea', 'Conduct Market Research', 'Write Business Plan', 'Arrange Funding', 'Register Business', and 'Launch the Business'.

Question 9: Discuss why market research is a crucial part of business planning.

Answer: Market research provides valuable information about customer needs, competitors, and market trends, helping businesses make informed decisions and reduce risks.

Question 10: Identify and explain two key financial considerations a business must address during planning.

Answer: Two key considerations are startup costs, which include initial expenses like equipment and stock, and cash flow management, which ensures the business can meet its financial obligations as they arise.

Question 11: Sketch a simple diagram illustrating how a business plan influences decision-making within a company.

Answer: A proper sketch would depict a central 'Business Plan' box with arrows pointing to 'Marketing Strategy', 'Financial Planning', 'Operations', and 'Decision-Making', illustrating how the plan guides various decisions.