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

Answer: A business plan is a detailed document that outlines a business's goals, target market, products or services, financial projections, and strategies. It is important because it helps guide the business, attract investors, and plan for potential challenges.

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

Answer: Accessibility for customers, proximity to suppliers, and the level of competition in the area.

Question 3: Describe what a SWOT analysis is and name the four components involved.

Answer: A SWOT analysis is a tool used to identify the Strengths, Weaknesses, Opportunities, and Threats related to a business or project.

Question 4: Imagine you are planning a small café. Sketch a simple layout of the interior that includes a seating area, a counter, and a kitchen space. Use the large blank space below for your drawing.

Answer: A correct sketch would show a designated seating area with tables and chairs, a counter area for ordering and serving, and a separate kitchen space at the back or side. The layout should be clear and organized for efficient workflow.

Question 5: Identify two sources of funding that a new business might use to start up and briefly describe each.

Answer: Bank loans, which involve borrowing money from a bank to be paid back with interest; and personal savings, which are funds saved by the entrepreneur from their own income.

Question 6: Explain why market research is an essential part of the planning process for a new enterprise.

Answer: Market research helps identify potential customers, understand competitors, and determine demand for the product or service, reducing the risk of failure.

Question 7: Identify three legal considerations a new business owner must be aware of before starting their enterprise.

Answer: Registering the business, obtaining necessary licenses or permits, and understanding health and safety regulations.

Question 8: Describe what a target market is and explain why defining a target market is important for an enterprise’s success.

Answer: A target market is a specific group of consumers most likely to buy a business's products or services. Defining it helps the business tailor its marketing efforts and meet customer needs effectively.