Opportunity Cost/ Sectors
Define Value added.
To create a product that is worth more than the cost of making it. Business can add value to their products by
: Design, quality and efficiency, marketing and convenience.
'The business will run a s a private limited company'
'To begin with, the business will have only two full-time employees and one part-time employee.’
Which part of the business plan ?
Business Summary.
Identify the following into Primary, Secondary and Tertiary sector:
1. Car Workshop
2. Accountancy firm
3. Farm
1 and 2 : Service sector
Farm : Primary sector.
Mention 4 attributes of a successful entrepreneur:
Good timekeeper; Good communicator; Organised (good at time management); Problem solver; Motivator; Creative; Risk seeking; Intelligent; Committed; Focused; Determined; Inspirational; Hard working; Honest; Innovative; Team player; Resourceful; Excellent business knowledge; Enthusiastic.
Find the opportunity cost of the following two statements :
1. A supermarket chain opening a new store
2. A restaurant trains its chef.
1. Buying new machinery for the kitchen.
2. Renovating existing outlet.
We asked 100 customers questions about which products they liked. We also asked for the reasons why they liked these products.’ ‘We have presented the results in graphs and tables.’ ‘The section will cover both primary and secondary data.
Which part of the business plan ?
Market Research
Explain one disadvantage of :
A region in France specialises in making very expensive hand built sports cars.
In a recession, people may not buy expensive cars so the region loses their business.
Explain any two benefits of a business plan to business
1 Gives targets and aims for employees.
2 Useful for investors and other lenders, such as a bank, to see how the business is likely to perform.
3 The business can measure its progress against the financial aims it set in the plan.
List the following into private/ Publict :
1. Large employer
2. Funded by taxes
3. Profit-driven
4. Shareholders
5. Run in order to benefit society
6. Government- Funded.
1. Large employer - Public
2. Funded by taxes - Public
3. Profit-driven - Private/Public
4. Shareholders - Private/ Public
5. Run in order to benefit society - Public/ Private
6. Government- Funded - Public/ Private
Explain any two limitations of a business plan to an entrepreneur.
1 Some entrepreneurs may feel it restricts day-to-day running as the business evolves.
2 It doesn’t take into account changes to the economy that the entrepreneur may struggle to adapt to.
3 The plan can give too much confidence to the entrepreneur, who might think the plan covers all aspects of business.