Establishing a business

Which of the following are advantages of opening a new business?

• The owner has full control over business decisions like location, branding and signage, employees

• There is little if any historical data regarding finances

• The market for the business is already established

• The owner can enter a new niche market

Factors to consider when choosing the right bank account DOES NOT include:

• Interest rates

• Bank fees

• Overdraft

• Convenience and support

• Tradition

The process of utilizing resources to create goods and services by assuming risk to satisfy consumers' needs is known as:

• Entrepreneur

• Business

• Entrepreneurship

• Production

A person who identifies business opportunities and utilizes creativity while assuming risks to provide goods and services to prospective customers is a/an:

• Producer

• Consumer

• Supplier

• Entrepreneur

Money that is used to start your business is called:

• Financing

• Capital

• Funds

• revenue

All of the following are traits of a typical entrepreneur EXCEPT:

• Optimistic

• Innovative

• Risk averse

• Resilient

All of the following are likely to form part of a business plan for a new computer retail business EXCEPT:

• Executive Summary

• Marketing Plan

• Production Plan

• Financial Plan

Which of the following should be done before a business venture is set up?

• Conduct market research to assess the level of demand for the product.

• Visit all the competitors who sell similar products or services.

• Assess how much capital will be needed to finance the business.

• Create a business plan to understand how you intend to put your ideas into action.

The personal possessions that can generally be used as collateral when applying for a loan at a commercial bank are:

• Apparel

• Motor vehicle

• Furniture

• Property

Which of the following are reasons for conducting a feasibility study?

• Checking the potential profitability of a business

• Identifying the possible sources of finance

• Assessing the viability of the business

• Checking the possible cost to start the business

• All of the above