CHAPTER 1 - Enterprise & Business Planning

Question 1

Primary Sector

Answer 1

extraction of raw materials e.g farming, mining, extracting oil

Question 2

secondary sector

Answer 2

manufactoring stage - e.g manufacturing cars,
processing food, making
clothes,

Question 3

tertiary sector

Answer 3

provides services - e.g gyms, offering financial advice,
operating fleets of buses and
trucks, prepare marketing
campaigns

Question 4

Why do people start their own business?

Answer 4

• To gain a profit
• To turn a hobby or a pastime into a business
• To be their own boss

Question 5

Needs

Answer 5

Needs – needs are what people require to survive – for example, food, warmth,
shelter and clothing.

Question 6

Wants

Answer 6

what we desire, what we would like to have. For example, nicer clothes, not just basic functional
items, a new phone every year, a massive flat screen TV

Question 7

What is an entrepreneur?

Answer 7

someone who starts and runs a business.

Question 8

key characteristics of an entrepreneur?

Answer 8

• Being a risk taker
• Being an effective organiser
• Having creativity and being innovative
• Being hard working

Question 9

Identifying business opportunities

Answer 9

Potential business opportunities occur when a market need exists. This market need is preferably one that has not yet been targeted or not yet been targeted effectively.

Question 10

Developing a business plan HEMOF

Answer 10

The executive summary
The marketing plan
The operations plan 
The human resources plan
The financial plan

Question 11

What are the benefits of a business plan?

Answer 11

• Presents the business owners with a clear set of instructions on how to run the business.
• Allows business owners to check progress against objectives
• Monitor cash flow and take action when objectives are not being achieved.
  when things are going wrong.
  A business plan is also needed for potential investors or when seeking finance from banks. Without a
  business plan it is highly unlikely that capital could be attracted from people or institutions outside of the
  business

Question 12

What are the drawbacks of a business plan?

Answer 12

• Market research costs time and money

- Resources might be better spent elsewhere in the business