What is the primary purpose of a business plan?

• To attract customers

• To secure funding and guide the business

• To reduce competition

• To hire employees

Which section of a business plan outlines the business's goals?

• Financial plan

• Executive summary

• Objectives

• Market analysis

What does a market analysis in a business plan typically include?

• Competitor information and target market

• Employee salaries

• Production costs

• Profit forecasts

Why is a cash flow forecast important in a business plan?

• To predict customer demand

• To estimate future cash inflows and outflows

• To calculate employee bonuses

• To set advertising budgets

Which of the following is NOT typically included in a business plan?

• Marketing strategy

• Personal hobbies of the owner

• Financial projections

• Operational plan

Which source of finance is most suitable for a start-up business?

• Retained profit

• Personal savings

• Floating on the Stock Market

• Trade credit

What is an advantage of using a bank loan as a source of finance?

• No interest is charged

• The business retains full ownership

• It does not need to be repaid

• It is risk-free

Which source of finance involves selling shares in the business?

• Overdraft

• Venture capital

• Share capital

• Leasing

What is a disadvantage of using trade credit as a source of finance?

• It can damage supplier relationships if payments are late

• It requires collateral

• It is only available to large businesses

• It involves high interest rates

Which source of finance is most likely to be used for purchasing machinery?

• Crowdfunding

• Leasing

• Overdraft

• Retained profit