POB: 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

All of the following are part of the conceptualization function EXCEPT:

• Developing a business idea

• Understanding how the business will deliver what consumers want

• Researching all aspects of the business idea

• Evaluating business performance

Which of the following are reasons for starting a business?

• The desire for financial independence

• Self-fulfillment

• Self-actualization

• To increase your income

• All of the above

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

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

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

• 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.

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

• Checking the potential profitability of a business

• Identifying the possible sources of income.

• Checking the possible cost to start the business

• Assessing the viability of the business

• All of the above

What is the purpose of a business plan? 

• To document your financial activity during one year

• Legal document to be filed with the SEC

• States the purpose and vision of your company

• States the amount of capital you need to run the company

The creation of a new enterprise is important because this new enterprise contributes to economic development through benefits that include all of the following EXCEPT:

• Product-process innovation

• Increased tax revenues

• Unemployment

• Social betterment

Acquisition of funds may come from?

• Personal savings

• Borrowing from friends and family

• Borrowing from financial institutions

• Investors

• All of the above

Which is NOT a major human resources goal?

• Maintain a productive and safe environment.

• Provide training and development.

• Ensuring daily work in completed by all employees.

• Develop plans to compensate employees.

Resources required to produce goods and services to satisfy human wants and needs

• Land

• Capital

• Labour

• Enterprise

• All of the above