Question 1: Define the term 'business plan' and explain why it is important for an enterprise.

Answer: A business plan is a detailed document that outlines the objectives, strategies, target market, financial forecasts, and operational plans of a new business. It is important because it helps entrepreneurs clarify their ideas, attract investors, secure funding, and guide the development of the enterprise.

Question 2: List three key components that should be included in a market research report for a new business idea.

Answer: Target market demographics, competitors analysis, and customer needs/preferences.

Question 3: Explain the importance of identifying a target market when planning a new enterprise.

Answer: Identifying a target market helps businesses focus their marketing efforts, develop products that meet customer needs, and allocate resources efficiently, increasing chances of success.

Question 4: Describe what a SWOT analysis entails and why it is useful in the planning stage.

Answer: A SWOT analysis examines the Strengths, Weaknesses, Opportunities, and Threats related to a business idea. It is useful because it helps identify internal advantages and disadvantages, as well as external opportunities and risks, guiding strategic decision-making.

Question 5: Sketch a simple flowchart illustrating the steps involved in developing a business plan. Use the large blank space provided.

Answer: A correct sketch would include steps such as: idea generation → market research → setting objectives → financial planning → marketing strategy → writing the plan → review and revisions.

Question 6: Identify two potential risks that could affect the success of a new enterprise and suggest ways to mitigate them.

Answer: Potential risks include insufficient funding and low customer demand. Mitigation strategies could include securing adequate financing before launch and conducting thorough market research to understand customer needs.

Question 7: Explain the role of a Unique Selling Proposition (USP) in enterprise planning.

Answer: A USP is what makes a business or product different and better than competitors. It helps attract customers and build a competitive advantage during planning and marketing.

Question 8: Draw a simple diagram showing the relationship between 'Market Research', 'Business Idea', and 'Financial Planning'. Use the large blank space.

Answer: The diagram should depict 'Business Idea' at the center, with arrows pointing from 'Market Research' to 'Business Idea' (indicating research informs the idea) and from 'Business Idea' to 'Financial Planning' (indicating planning is based on the idea).

Question 9: Discuss why setting SMART objectives is important in the planning process of an enterprise.

Answer: SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound. They provide clear direction, enable progress tracking, and improve the chances of achieving business goals.

Question 10: Identify two sources where an entrepreneur can gather information for market research.

Answer: Government reports and customer surveys.