Establishing a business

Which of the following would you not associate with being enterprising?

• being prepared to take risks

• being willing to work hard for long hours

• being imaginative and flexible

• looking for predictable and certain outcomes

For which of the following groups would a business plan most likely be prepared?

• customers

• employees

• lenders

• the local community

The best arguments for small enterprises contributing to development is that:

• It is i fact large enterprises that employ most people in an economy

• Small enterprises generate less income and wealth than large businesses

• small enterprises create o s for employees and products for customers

• small enterprises tend to be more common in smaller countries than in larger ones

An executive summary in a business plan:

• is the name used to describe the business plan in ts entirety

• sets out in a succinct way the key aspects of the plan

• outlines the key decisions that business mangers will make in an enterprise

• focuses on the business market and the management team

The function of collateral is to

• provide funds to a borrower

• enable the lender to take interest from the borrower

• increase the size of the funds that can be borrowed

• provide the lender with confidence that it has security to cover its loan

Monetary and fiscal policy is associated with policies made by:

• a parish council

• a municipal council

• an intergovernmental committee

• a national government

A feasibility study will enable an entrepreneur to:

• decide whether to start up a new enterprise

• borrow money in order to buy start-up equipment

• Choose how to market the products

• Identify a business name for a new business

A business is most likely to locate close to the source of its raw materials when:

• The market for the product is a long way

• The raw materials are heavily and bulky, and bulky and reduce in the production process

• It is essential to locate close to the available labour supply

• Only few raw materials are required for the production process

Self-actualisation is most likely to be achieved when

• an entrepreneur sets up a new enterprise

• an entrepreneur works long hours with few breaks

• an entrepreneur is able to be creative and fulfilled

• only a few raw materials are required for the production process

A primary source of information that would help in creating business plan would be:

• Government statistics about market

• existing published materials from a market-research company

• An entrepreneur's previous experience of running a similar business