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

Answer: A business plan is a detailed document that outlines the goals, target market, operational plan, finances, and marketing strategies of a new business. It is important because it helps to clarify ideas, secure funding, and guide the development and growth of the enterprise.

Question 2: List three key factors that should be considered when choosing a location for a new business.

Answer: Accessibility for customers, proximity to suppliers, and suitability for the type of business (e.g., space requirements, safety).

Question 3: Identify two potential risks that could affect a new enterprise and suggest ways to mitigate them.

Answer: Market competition - conduct thorough market research; Financial risks - create a detailed budget and secure sufficient funding.

Question 4: Describe the process of conducting market research for an enterprise idea.

Answer: Market research involves gathering information about potential customers, competitors, and industry trends through surveys, interviews, and analysing existing data to make informed decisions.

Question 5: Sketch a simple flowchart showing the main stages involved in planning a new enterprise. Use blank space provided.

Answer: A correct sketch should include stages such as idea generation, market research, setting objectives, creating a business plan, securing funding, and launching the business.

Question 6: Explain the importance of setting SMART objectives in enterprise planning.

Answer: SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound. They help to focus efforts, measure progress, and increase the likelihood of success.

Question 7: Identify two sources of funding that can be used to start an enterprise and briefly describe each.

Answer: Bank loans - borrowed money that must be repaid with interest; Angel investors - individuals who invest personal funds in exchange for ownership equity.

Question 8: Sketch a basic layout for a start-up business financial plan table. Label the sections clearly.

Answer: The sketch should show sections such as Start-up Costs, Operating Expenses, Revenue, and Profit/Loss, with space for figures under each heading.

Question 9: What is a SWOT analysis, and why is it useful in enterprise planning?

Answer: A SWOT analysis is a strategic tool that identifies Strengths, Weaknesses, Opportunities, and Threats related to a business idea. It helps in making informed decisions and developing strategies to succeed.

Question 10: Describe how a business owner can evaluate whether their enterprise plan is realistic and achievable.

Answer: By setting clear objectives, conducting thorough market research, calculating financial forecasts, and consulting with advisors or mentors, the owner can assess if the plan is practical and attainable.