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WorksheetsCAMNAT LO5 Starting up a Business
Total questions: 50
Worksheet time: 25mins
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
the ability to get financing.
it's a road map that sets objectives and goals for the business
All of the above
Your business plan should never list any risks or potential problems.
True
False
True or False: Business plans are used by new, rather than established, firms
TRUE
FALSE
Which of the following statements about business plans is TRUE?
Business plans eliminate risk to lenders
Business plans reduce risk to lenders
Business plans increase risk to lenders
Business plans have no impact on risk to lenders
Which of these pieces of information would NOT be in a business plan put together by a new business?
Target market
Market research
Profit
Estimated cashflow
An entrepreneur is creating a business plan for a new business ; they are including a section on sources of finance. Which of these are appropriate sources of finance to suggest? (Suggest as many as are appropriate)
Grant
Retained profit
Owner savings
Bank loan
Which of the following is it OK to leave out of a business plan?
Executive summary
Location
Marketing
Employees needed
None of the above
The primary purpose of a business plan is to define what the business is or what it intends to be over time.
True
False
The goals of a business are known as the business:
Idea
Plan
Aims and objectives
Location
Which of the following best describes the term, risk?
When something has already gone wrong
The possibility that something might go wrong
When something is difficult to predict
A lack of information about the market
In which section of the business plan would you expect to find details about the capital needed to start-up the business?
The business idea
Business aims and objectives
Forecast revenue, costs and profit
Sources of finance
A business plan is more likely to secure external funding if it is:
Very lengthy
Has limited financial forecast information
Specific and concise
Little money has been spent on market research
What is the most likely source of finance for a small firm?
A debenture
Issuing shares
A bank loan
Which of the following is NOT usually considered a personal source of finance.
Savings
Redundancy payments
Crowdfunding
Credit card
A short-term source of finance from a bank that usually is only used in an emergency/when needed
Overdraft
Loan
Share capital
Credit card
Which of the following statements about overdrafts is not true?
Short term source of finance
It's really a small, short term loan
It's flexible, in that it can be used whenever it is needed
Cheap - the interest rate is usually lower than that of a long-term bank loan
If you have full responsibility for your business debts this is known as ...
Unlimited Liability
Limited Liability
Personal Liability
Sole Traders have Limited liability
Sole trader businesses are easy to set up.
What is a business angel?
entrepreneurial individuals who provide capital in return for a proportion of a companies revenue
A bank who loans money with no interest
A wealthy individual who gives money to a business
A _____ is the right or license to sell a company's product or service at a designated location; an example would be McDonalds.
franchise
partnership
sold prprietorship
corporation
A business plan would normally be updated:
Every day
A month after the business starts
Once a business adjusts its aims/objectives
Every so often
Never - It stays the same in its original form
The term for money invested in a business is ...
Finance
Capital
Investment
Loan
A _____ is owned and operated by one individual; an example would be a plumber.
franchise
partnership
sole propietorship
corporation
