Business plans and contingency management

Question 1

What is a business plan?

Answer 1

A written document explaining how a business is going to achieve objectives

Question 2

What are the advantages of a business plan?

Answer 2

Strategic review conducted
Direction
Consider constraints
Better terms for borrowing

Question 3

What are the disadvantages of a business plan?

Answer 3

ongoing time cost
altered by someone who does not like
too time consuming

Question 4

What is a contingency plan?

Answer 4

Planning in a case of things going wrong

Question 5

What is risk?

Answer 5

Possibility of loss or business damage

Question 6

What are the common mistakes of a business plan?

Answer 6

Poor credit management 
Poor supplies
Poor stock control
Unrealistic goals 
Weak finance
Lack of market research

Question 7

What are advantages of Plan-Do-Review?

Answer 7

Final review
Methodical
More focused
Regular reviews

Question 8

What are disadvantages of Plan-Do-Review?

Answer 8

Lengthy

Inflexible

Question 9

Why are business plans important to stakeholders?

Answer 9

Shareholders-rise in shares/large dividend
Employees- job security/pay rise
Customers- fair prices/ good service
Investors- repaid on time/ interest on loans
Supplies- regular orders