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

Answer: A business plan is a detailed document that outlines the goals, target market, resources, and financial projections of a new business. It is important because it helps guide the business, attract investors, and identify potential challenges.

Question 2: List three key factors you should consider when choosing a location for a new business.

Answer: Accessibility for customers, proximity to suppliers, and cost of rent or property.

Question 3: Describe how conducting market research can benefit an enterprise during the planning stage.

Answer: Market research helps understand customer needs and preferences, identify competitors, and assess demand, which allows for better decision-making and reduces risks.

Question 4: Sketch a simple flowchart illustrating the steps involved in planning an enterprise, including at least four stages.

Answer: A correct flowchart would include stages such as idea generation, market research, resource planning, and launching. It should show the sequence and flow between these steps.

Question 5: Explain why setting SMART objectives is important in enterprise planning. Provide one example of a SMART objective related to sales growth.

Answer: SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound, which helps focus efforts and track progress. Example: 'Increase sales by 15% within the next six months.'

Question 6: Identify and describe two potential risks an enterprise might face during the planning phase.

Answer: Financial risk, such as insufficient funding, and market risk, such as low customer demand for the product or service.

Question 7: Draw a basic diagram to show how a target market influences product development. Use labels to explain your diagram.

Answer: The diagram should depict a circle labeled 'Target Market' with arrows pointing towards 'Product Features' and 'Pricing Strategy,' illustrating how understanding the target market impacts these aspects.

Question 8: Describe the purpose of a SWOT analysis in the planning process of an enterprise.

Answer: A SWOT analysis assesses the enterprise's Strengths, Weaknesses, Opportunities, and Threats to inform strategic decisions and improve planning.

Question 9: Sketch a simple budget plan for a start-up enterprise, including at least three income sources and three expenses. Label each part clearly.

Answer: A correct sketch would show sections for income, such as sales revenue, loans, or investments; and expenses, such as stock costs, marketing, and rent, with clear labels.

Question 10: Explain the importance of time management during the enterprise planning process.

Answer: Effective time management ensures all planning tasks are completed on schedule, reducing delays and helping to achieve objectives efficiently.