OCR 1-9 Business 1.2 - Business Planning

What is a business plan?

• Written document that only outlines the business practices of the new business.

• Written document that describes the financial aspects of the business.

• Written document that only describes the ownership of the business.

• Written document that describes all the steps necessary for opening and operating a successful business.

Why do you need a business plan?

• To explain your idea

• the ability to get financing.

• it's a road map that sets objectives and goals for the business.

• To help reduce the risk of business failure.

• All of the above.

Lenders want to know where your business will be located because the location of a business is often critical factor to its success

• True
• False

Complete the sentence: A business plan...

• is useful once your business is operational but not much help during the startup phase

• is not usually needed once the business is up and running

• can serve as a tool for helping a business during the startup phase and for managing your business once it is up and running.

Lenders and investors require a business plan before they will consider financing a business

• True
• False

Which of the following is NOT a heading on a business plan?

• The staff

• The idea

• Market research

• Advertising campaign examples

• Competitors

Which of the following is NOT a heading on a business plan?

• Finance

• Business objectives

• The idea

• The staff

• Motivation techniques

Which of the following would be interested in seeing the business plan of a new company?

• Customers

• Potential investors

• The owners of the company

• Banks/ potential lenders

• Local council

A business plan would normally be updated:

• Every day

• A month after the business starts

• Once a business adjusts its aims/objectives

• Every so often

• Never - It stays the same in its original form

Which of the following pieces of information would you expect to find within a business plan

• How much staff wages are going to cost

• The production method the business will use

• Information about competitors products

• Opinions collected from the customers

• The organisation structure of the company