Question 1: Define the term 'enterprise' in your own words.

Answer: An enterprise is a business or organization that is involved in commercial, industrial, or professional activities, typically with the aim of making a profit.

Question 2: List three key factors that should be considered when planning an enterprise.

Answer: Target market, start-up costs, and competition.

Question 3: Explain why conducting market research is important before starting an enterprise.

Answer: Market research helps identify customer needs, assess demand, understand competitors, and reduce risks by informing better decision-making.

Question 4: Describe what a business plan should include to effectively guide an enterprise.

Answer: A business plan should include an executive summary, description of the business, market analysis, marketing strategy, operational plan, financial projections, and funding requirements.

Question 5: Identify two sources of funding for a new enterprise and explain the advantages of each.

Answer: Bank loans, which provide a large sum of money but must be repaid with interest; and personal savings, which do not need repayment but may be limited in amount.

Question 6: Sketch a simple flowchart that shows the steps involved in planning an enterprise from idea generation to launch.

Answer: A flowchart starting with 'Idea Generation', then 'Market Research', followed by 'Business Planning', 'Securing Funding', and ending with 'Launch'.

Question 7: Draw a diagram of a basic cash flow forecast for a new business. Include at least two income sources and two expenses.

Answer: A graphical layout showing income sources such as sales and investments, and expenses like rent and supplies, with arrows indicating inflow and outflow.

Question 8: Explain the importance of setting SMART goals during the planning stage of an enterprise.

Answer: SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound; they help clarify objectives, motivate progress, and enable effective tracking.

Question 9: Identify three potential risks when starting a new enterprise and suggest a way to mitigate each one.

Answer: Market competition (mitigate by market research and differentiation), cash flow problems (manage with detailed financial planning), and regulatory issues (consult legal advice and ensure compliance).