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WorksheetsBusiness Planning Prelim
Total questions: 20
Worksheet time: 10mins
What is a business plan?
Written document that only outlines the business practices of the new business.
Written document that describes the financial aspects of the business.
Written document that only describes the ownership of the business.
Written document that describes all the steps necessary for opening and operating a successful business.
Why do you need a business plan?
To explain your idea
To help reduce the risk of business failure.
it's a road map that sets objectives and goals for the business.
All of the above.
A business plan would normally be updated:
Every day
A month after the business starts
Once a business adjusts its aims/objectives
Never - It stays the same in its original form
Which of the following pieces of information would you not expect to find within a business plan
How much staff wages are going to cost
The production method the business will use
Information about competitors products
Opinions collected from the customers
What is it called when multiple business are trying to win the same customers?
A competitive market
A monopoly
A diverging market
Perfect competition
Which of the following reasons for business failure is attributed to the external business environment?
A businesses complacency
Supplier problems
Insufficient capital
Negative cash flow
Isabella opened a pharmacy in her local shopping centre and decided to copy the prices of Pharmacy King, a competitor located on the shopping strip outside the shopping centre. Which price-setting method did Isabella use?
Price leadership
Cost plus margin
Competitors Pricing
Recommended retail price
Which of the following statements would be an advantage of using equity finance?
There are taxation advantages.
Regular payments do not have to be made.
There is less risk for the business owner.
The owner does not have to sell shares in the business.
Elizabeth is a middle manager in a large company. She holds a team meeting each week where she communicates to her staff what their goal for that week is. What is this an example of?
The businesses Vision
Behavioural Approach to management
Classical Approach to management
Operational objective
Which of the following would not be a financial goal of a business?
Increase market share
To open up 10 new stores
To diversify into new markets
To provide employment to the local community
Which of the following is not an advantage of using an external recruitment company?
The recruitment agency has specialist skills in this area.
Recruitment agencies charge a fee for their services.
It decreases the time businesses need to spend when recruiting future employees.
Recruitment agencies use a variety of methods to find the most suitable employee.
Which of the following is an expense that stays fixed every month?
Rent
Groceries
Electric
Credit card
what can influence the success of an SME?
Personal qualities, business idea, marketplace, luck
business idea, marketplace, money and information
personal qualities, business idea, number of competitors
establishment structure, personal qualities, business idea and finance
