Question 1: Define the term 'business idea' and explain why it is important in the planning process.

Answer: A business idea is a concept for a product or service that a person or group wants to offer to customers. It is important because it provides the foundation for the business and helps guide decisions about what to sell.

Question 2: List three key factors to consider when choosing a target market for a new product.

Answer: Factors include the needs and preferences of potential customers, the size of the market, and the level of competition.

Question 3: Describe what a 'business plan' is and mention two main components it should include.

Answer: A business plan is a document that outlines the aims, strategies, and financial forecasts of a business. It should include components like marketing strategies and financial plans.

Question 4: Explain why setting a budget is important when planning a new enterprise.

Answer: Setting a budget helps ensure that the business does not spend more than it can afford, and it helps plan for expenses and expected income.

Question 5: Imagine you are starting a small business selling homemade jewelry. What are two possible sources of start-up funding you could consider?

Answer: Possible sources include personal savings and a small loan from a bank or family member.

Question 6: Draw a simple flowchart showing the typical steps in planning a new business. Include at least four steps and indicate the order.

Answer: A flowchart should include steps such as: 1. Coming up with a business idea, 2. Conducting market research, 3. Creating a business plan, 4. Securing funding.

Question 7: Sketch a layout for a basic promotional poster for a new business. Label the key elements that should be included.

Answer: A well-designed sketch should show a catchy headline, an image or logo, a brief description of the product/service, and contact details.

Question 8: Identify two potential challenges a new enterprise might face during the planning stage and suggest possible solutions.

Answer: Challenges include lack of funding and limited market knowledge. Solutions could be seeking additional funding sources and conducting thorough market research.

Question 9: Explain the importance of researching competitors before starting a new business.

Answer: Researching competitors helps understand what they offer, identify gaps in the market, and develop strategies to make your business stand out.

Question 10: Describe what a SWOT analysis is and list its four components.

Answer: A SWOT analysis is a tool used to evaluate a business's strengths, weaknesses, opportunities, and threats to aid in planning and decision-making.