business planning and practices

Question 1

What is a business plan

Answer 1

a formal written document containing the goals of a business, methods for attaining these goals and timeframe for the achievement of these goals

Question 2

What core elements should a business plan include

Answer 2

1. a convincing reason for the business to exist
2. Differentiating product or service description
3. clearly defined target market
4. competitive analysis
5. Statement of goals and objectives
6. Marketing and financial plan

Question 3

What is a budget

Answer 3

An estimate of income and expenditure for a set of time

Question 4

What are the importance of farm records

Answer 4

1. they help farmers to measure and analyze farm production
2. they provide a clear direction on what actions need to be taken
3. help farmers with planning their farm activities
4. help farmers get loans form banks
5. give history of farm so farmers can assess the productivity of the farm

Question 5

2 types of farm records

Answer 5

1. Physical record - physical items or activities that can be done on the farm
2. Financial record - analyze the farms income and expenditure

Question 6

What is inventory

Answer 6

list of items/stock avaible on a business/farm

Question 7

What are the types of inventory

Answer 7

1. Tool inventory
2. Fram structure inventory
3. Special commodity inventory
4. Special material inventory

Question 8

What is the importance of keeping inventory

Answer 8

1. provides the opportunity to measure success
2. controls expenditure
3. help in proper planning
4. help to respond to customers as quickly as possible

Question 9

What are important steps when drawing up your basic budget

Answer 9

1. add up your monthly income
2. Identify your necessary expenses
3. Identify your discretionary expenses
4. Add up your monthly expenses and compare your income

Question 10

What is market research

Answer 10

a method of obtaining a wide range of information and activities necessary to run a business

Question 11

what is supply

Answer 11

refers to the number of items a producer can offer for sale

Question 12

what is value adding

Answer 12

the difference between the price of the product and the cost of producing

Question 13

what is packaging

Answer 13

preparing goods for transport

Question 14

What are advantages of manual harvesting

Answer 14

cheap
low maintenance
no damage to the product

Question 15

What are the disadvantages of manual harvesting

Answer 15

very slow
products are not clean
only small areas can be harvested
depends on weather conditions
labor intensive
poor working conditions

Question 16

What are advantages of mechanical harvesting

Answer 16

quick
effective
can harvest large areas
specialized
capital intensive

Question 17

What are disadvantages of mechanical harvesting

Answer 17

expensive
requires high maintenance
increases unemployment rate

Question 18

storage methods of following products
fruit and veg
meat
grain
wine
bamboo
silage

Answer 18

fruit and veg - cold storage
meat - freezing rooms
grain - underground structures
air-tight storage
silos
wine - tanks
bamboo - traditional storage in clay pots
silage - plastic bags/coverings
bunkers