Question 1: Define the term 'business idea' and explain why it is important in the planning stage of an enterprise.

Answer: A business idea is a concept for a product or service that a person or group wishes to offer to the market. It is important because it provides the foundation for developing a business plan and helps determine the target audience and potential profitability.

Question 2: List three key factors you should consider when identifying your target market for a new product.

Answer: 1. The age group and demographics of potential customers. 2. The needs and preferences of the target customers. 3. The location or area where the target customers are based.

Question 3: Describe what a SWOT analysis is and why it is useful in enterprise planning.

Answer: A SWOT analysis is a tool that helps identify the Strengths, Weaknesses, Opportunities, and Threats related to a business idea. It is useful because it allows entrepreneurs to understand internal and external factors that could impact their success and helps in making informed decisions.

Question 4: Imagine you are planning a new local café. Sketch a simple layout plan of the interior, including areas for seating, a counter, and a kitchen. Use the large blank space provided.

Answer: A correct sketch would show a rectangular or square layout with designated zones: a seating area with tables and chairs, a counter for ordering and serving, and a kitchen area at the back or side. Labels should indicate each zone clearly.

Question 5: Explain the importance of setting a budget during the planning phase of an enterprise.

Answer: Setting a budget is important because it helps control costs, ensures there is enough money to cover expenses, and allows for better financial planning. It also helps identify how much capital is needed to start and run the business.

Question 6: Identify two potential risks that an entrepreneur might face when starting a new business and suggest one way to manage each risk.

Answer: 1. Risk: Not attracting enough customers. Management: Market research to better understand customer needs. 2. Risk: Running out of funds. Management: Keeping detailed financial records and maintaining a contingency fund.

Question 7: Describe the role of market research in the enterprise planning process.

Answer: Market research helps entrepreneurs understand customer needs, preferences, and the level of demand for their product or service. It also provides information about competitors, helping to identify opportunities and threats.

Question 8: Think about a new service you would like to offer in your local area. Write a brief paragraph explaining how you would plan for its launch, including at least two key steps.

Answer: To plan for launching a new service, I would first conduct market research to understand the demand and target customers. Then, I would create a marketing plan to promote the service, including advertising and special offers to attract initial customers.

Question 9: Sketch a simple logo or symbol that could represent a new eco-friendly cleaning business. Use the large blank space provided.

Answer: A correct sketch would feature a simple, recognizable symbol such as a leaf, water droplet, or recycling icon, incorporating clean, natural lines. It should be clear and easy to reproduce.

Question 10: Explain why teamwork is important during the planning stages of an enterprise.

Answer: Teamwork is important because it allows different ideas and skills to be shared, leading to better decision-making. It also helps distribute tasks and responsibilities, making the planning process more efficient.