1.4.4 Business plans

Question 1

Name 3 reasons why a business plan is important?

Answer 1

Any from:
Provides direction
Supports decision making
To arrange a bank loan
To seek investment
To establish viability of business

Question 2

Name 3 forms of external finance?

Answer 2

Any from:
Bank loan
Bank overdraft
Crowdfunding
Share capital
Trade Credit

Question 3

Name the components of a business plan?

Answer 3

Market research
Aims and objectives
Cash flow forecast
Mission statement
Details of product/service
Executive summary
Marketing and sales plan

Question 4

Name 3 reasons why new business ideas come about?

Answer 4

Products becoming obsolete
Changes in wants and needs of customers
Changing tech

Question 5

Name 2 sources of internal finance

Answer 5

Owners personal savings
Retained profit

Question 6

Advantage of using break even analysis

Answer 6

You know how many products you have to sell