Question 1: Define the term 'business activity'.

Answer: Business activity is any action that involves the production or sale of goods and services to satisfy customer needs and make a profit.

Question 2: List three main types of business activities.

Answer: Manufacturing, providing services, and selling goods.

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

Answer: A business plan helps to set goals, identify resources needed, plan finances, and outline strategies to attract investors and reduce risks.

Question 4: Describe two advantages of setting clear business objectives.

Answer: Clear objectives give direction to the business and help measure progress; they also motivate staff and attract investors.

Question 5: Imagine a new business plans to open a bakery. List three key factors they should consider in their business planning process.

Answer: Location choice, target customers, and initial start-up costs.

Question 6: Draw a simple business plan template with sections for 'Business Name', 'Objectives', 'Target Market', and 'Financial Plan'.

Answer: A clear sketch of a table or sections divided into four parts labeled as specified, with space for notes/ideas under each.

Question 7: Why is it important for a business to understand its target market?

Answer: Understanding the target market allows the business to tailor products and marketing strategies to meet customer needs and preferences, increasing sales.

Question 8: Identify two risks a new business might face during its initial stages.

Answer: Insufficient sales and cash flow problems.

Question 9: Sketch a simple flowchart showing the steps involved in starting a new business, from idea generation to opening the shop.

Answer: A series of boxes connected with arrows: 1. Come up with a business idea, 2. Conduct market research, 3. Write a business plan, 4. Arrange funding, 5. Find a location, 6. Register the business, 7. Launch the business.

Question 10: Explain how market research can help a business plan more effectively.

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