Chapter 3

Question 1

What are the stages of setting up a business?

Answer 1

The idea stage
The Planning Stage
The implementation stage

Question 2

Briefly explain the idea stage.

Answer 2

It is the identification of a feasible and viable business idea.

Question 3

Explain the planning stage.

Answer 3

This is where we draw the business plan.

Question 4

What is the implementation stage?

Answer 4

It is implementing the business plan.

Question 5

Draw out the three stages of setting up a business with more details.

Answer 5

ok, bet.

Question 6

What is creativity?

Answer 6

The generation of novel and useful ideas.

Question 7

What characteristics/abilities do creative people have in common that make them creative?

Answer 7

Solving problems in a different way
Initiating change
Thinking Imaginatively
Seeing possibilities where others have not seen

Question 8

What is divergent thinking?

Answer 8

The intellectual ability to think of many original and elaborate ideas.

Question 9

What is convergent thinking?

Answer 9

The intellectual ability to logically evaluate, critique, and choose the best idea from a selection of ideas.

Question 10

What are some methods to improve creativity?

Answer 10

Write ideas down
Actively seek ideas
View topics from different perspectives
Explore grey areas
Break routine

Question 11

What are the five broad approaches for generating business ideas?

Answer 11

Common needs
Other Sources
Skills, expertise, and aptitudes
Existing problems
Everyday activities

Question 12

What are the generation of ideas from Common needs?

Answer 12

Your idea must satisfy a range of people’s needs
Everyone needs something but not everyone needs the same thing
Think of interest groups and their needs and write them down
You can identify groups of organizations that have the same needs

Question 13

What is the generation of ideas from existing problems?

Answer 13

Think of unsolved problems
To come up with an idea to solve the problem
Knowledge of these problems allows new ideas.

Question 14

What is the generation of ideas from everyday activities?

Answer 14

Identifying ideas by being aware of activities we perform every day.

Some methods include:
Using print or electronic media
Exploring surroundings
Going shopping

Question 15

What methods are used to evaluate business ideas?

Answer 15

Feasibility Study
Viability Study

Question 16

explain the Feasibility Study.

Answer 16

It examines the potential of the idea to be converted into a business.

Question 17

Explain the viability STUDY.

Answer 17

It is an in-depth investigation into the profitability of an idea to be converted into a business.

Question 18

How to be clear about what ideas suggest in the development and evaluation of business ideas?

Answer 18

What will be the chief activity of the business?
Who will the customer be?

Question 19

What do the activities of the business consist of?

Answer 19

The manufacturing of a product
The provision of a service
The sale of other people’s goods or services

Question 20

How to determine the feasibility of business ideas? DICC

Answer 20

Do you want to make what the idea suggests?
Is there a market for your idea?
Can you meet the needs of your customers?
Can you advertise the idea to your customers?

Question 21

Study bowtie diagram

Answer 21

ayt bet. Chapter 3, Page 19