EIS: Discussion questions 4-6

All are the typical structure for a business plan except:

• Executive summary

• Financial Plan

• Operational Plan

• Borrowing Plan

Answer explanation

• A business plan typically includes an executive summary, financial plan, and operational plan.

• The executive summary provides a concise overview of the entire plan. The financial plan outlines the projected financial statements and budgets. The operational plan outlines the day-to-day operations and processes of the business.

• However, a borrowing plan is not a typical structure for a business plan. While a business plan may include information on how the business plans to finance its operations, a separate borrowing plan specifically focuses on obtaining loans or other forms of financing.

___________ is referred to someone who undertakes a business venture.

• A Business Manager

• An Entrepreneur

• A Businessman

• A Supervisor

Answer explanation

• An entrepreneur is someone who undertakes a business venture. They are individuals who identify opportunities, take risks, and create new businesses or develop existing ones. They are known for their innovative thinking, leadership skills, and ability to bring ideas to life. Entrepreneurs are driven by a passion for their business and are willing to take on the challenges and uncertainties that come with starting and running a business.

• Unlike a business manager, businessman, or supervisor, an entrepreneur is specifically focused on creating and growing a business venture.

Entrepreneurship contributes to the following:

• Economic growth

• Employment opportunities

• Career alternatives for women and minorities

• All of the above

Answer explanation

• Entrepreneurship contributes to economic growth by fostering innovation, creating new businesses, and driving competition, which in turn stimulates economic activity and increases productivity.

• It also generates employment opportunities by creating new jobs and supporting existing ones through the growth of businesses.

• Furthermore, entrepreneurship provides career alternatives for women and minorities, allowing them to pursue their own ventures and overcome barriers to traditional employment.

• Therefore, all of the mentioned options are valid contributions of entrepreneurship.

The person who creates value by moving resources out of less productive areas into more productive ones is called:

• A Banker

• A Magician

• A Business guru

• An Entrepreneur

Answer explanation

• An entrepreneur is the correct answer because they are individuals who identify opportunities and create value by allocating resources from less productive areas to more productive ones.

• They take risks and use their skills, knowledge, and creativity to start new businesses or improve existing ones, ultimately driving economic growth and innovation.

• Entrepreneurs play a crucial role in the economy by creating jobs, generating wealth, and driving competition.

__________ is one of the various factors that influence entrepreneurship

• Life-path circumstance

• Economic growth

• Inheritance

• Desire

Answer explanation

• Life-path circumstance refers to the unique experiences and circumstances that individuals encounter throughout their lives. These circumstances, such as upbringing, education, and personal experiences, can greatly influence an individual's decision to become an entrepreneur.

• For example, someone who grew up in a family of entrepreneurs may be more likely to pursue entrepreneurship themselves.

• Similarly, individuals who have faced challenges or adversity may be motivated to start their own businesses as a way to overcome those obstacles.

• Therefore, life-path circumstances play a significant role in shaping an individual's entrepreneurial aspirations and opportunities.

The promises exchanged by parties to a contract

• Consideration

• Agreement

Answer explanation

Consideration is the correct answer because it refers to the value or benefit that each party in a contract gives or promises to give to the other. It is an essential element of a valid contract, as it signifies that each party is receiving something of value in exchange for their promises. Without consideration, a contract may be deemed unenforceable. Therefore, consideration plays a crucial role in ensuring the fairness and enforceability of contractual agreements.

A contract that allows one of the party (suffered party) to withdraw from the contract.

• Void contract

• Voidable contract

Answer explanation

A voidable contract is a type of contract that allows one of the parties, known as the suffered party, to withdraw from the contract. This means that the suffered party has the option to either enforce the contract or void it, depending on their own discretion. Unlike a void contract, which is considered legally invalid from the beginning, a voidable contract is initially valid but can be made void by the suffered party if certain conditions are met.

All agreements between two competent parties are contracts.

• True

• False

Answer explanation

All contracts are agreement but all agreements are not contract.

A written contract that has legal documentation and the seal (stamp) of the company.

• Formal contract

• In formal contract

Answer explanation

The given answer, "formal contract," is the correct answer because it accurately describes a written contract that has legal documentation and the seal (stamp) of the company. A formal contract is a legally binding agreement that is typically written and signed by all parties involved. The inclusion of legal documentation and the company seal adds an extra level of formality and authenticity to the contract.

Implied contracts are neither written nor oral contracts.

• True

• False

Answer explanation

Implied contracts are agreements that are not explicitly stated in writing or verbally expressed. Instead, they are inferred from the actions, conduct, or circumstances of the parties involved. These contracts are legally binding, even though they may not be formally documented or discussed. Therefore, it is correct to say that implied contracts are neither written nor oral contracts, making the answer "True."