Enterprise and business Planning

Question 1

What does business come the private sector give us

Answer 1

food from farming, power through mining or oil extraction

Question 2

What does enterprise in the secondary sector provide us with

Answer 2

Consumer goods from manufacturing

Question 3

What does enterprise from the tertiary (services) sector provide us with

Answer 3

Gyms, financial advice, fleets of trucks or buses

Question 4

Sumerise business sector in Uk

Answer 4

1 almost 5 million businesses employing 4 million
2 of which 3.3 million are sole traders
3 approx 500,000 partnerships
4 1.2 million ltd companies
5 small and medium enterprises employ 14.4 million with a turnover of 1.6 billion

Question 5

Give reasons why people start their own businesses

Answer 5

1 gain profit
2 turn a hobby into a business
3 own boss
4 use redundancy- as little chance of finding a job

Question 6

What is satisficing

Answer 6

making decisions that aim for a satisfactory result but not using up all their energy to maximise income

Question 7

Why do politicians refer to small businesses as lifeblood of uk economy

Answer 7

1According to department of business and skills 99% of businesses are defined as small
2 this 99% is responsible for 47% of all private sector employment
3 am 1/3 of all turnover created in UK

Question 8

What are needs and wants

Answer 8

Needs - what you require to exist - food, warmth, shelter, healthcare , clothes, education
Wants - what is desired- big TVs, holidays, new cars

Question 9

Why do needs and wants change

Answer 9

because fashions and lifestyles change, incomes increase and population changes

Question 10

What is an entrepreneur

Answer 10

someone who starts and runs their own business

Question 11

Why are entrepreneurs valued by governments

Answer 11

1 they create wealth in the economy
2 many are innovators who bring new ideas to market and drive development of new technologies

Question 12

Www.http://bit.ly/1T1eTOM

Answer 12

.

Question 13

What are the characteristics of an entrepreneur

Answer 13

1 risk taker - capital , leave jobs
2 proactive/ take initiative
3 effective organiser
4creative and innovative
5 hard working
6 determined and have perseverance

Question 14

When does a potential business opportunity occur

Answer 14

When a market need exists preferably one not yet targeted - entrepreneur needs to find a product not already available or one that can be improved

Question 15

What is the purpose of a business plan

Answer 15

1 describe the idea
2 make clear the aims and objectives of a business
3 detail how they will be achieved
4 describe how finance will be achieved

Question 16

What forms can objectives take

Answer 16

They can be financial - sales
Marketing
Or production

Question 17

What is a market plan

Answer 17

A desk and field research to establish
1 s ize of market
3, needs of customer and 4 level of competition

Question 18

What is an operations plan

Answer 18

includes details of
1 where business will be located
2 production methods
3 equipment needed
4 cost of production
5 where supplies are bought

Question 19

What is Human Resources plan

Answer 19

1 number of employees
2 skills experience and qualifications needed
3 outlined management teams

Question 20

What are financial plans

Answer 20

A variety of forecasts
1 sales forecasts indicating potential revenue
2 cash flow forecasts for first 12 months
3 profit and loss balance forecast for end of 1st year
4 break even analysis
5 details of where finance will come from for starting up

Question 21

What are the benefits of a business plan

Answer 21

1 gives owner clear set of instructions on how to run the business
2 owner can check progress against objectives and take action when not achieved
3 needed for potential investors or when seeking finance from banks

Question 22

What are the draw backs of a business plan

Answer 22

1 market research costs time and money resources may be better spent else where
2 questionable how reliable the market research data is
3inaccurate business plans with unachievable objectives lead to failed investments