Theme 1.3 Flashcards
Putting a business idea into practice (25 cards)
What is the purpose of a business plan?
To outline the goals, strategies, and financial forecasts of a business.
True or False: A business plan is only necessary for large businesses.
False
Fill in the blank: A business plan typically includes an executive summary, market analysis, _____, and financial projections.
marketing strategy
What is a target market?
A specific group of consumers that a business aims to reach with its products or services.
Multiple Choice: Which of the following is NOT typically included in a business plan? A) Executive summary B) Employee handbook C) Financial projections D) Market analysis
B) Employee handbook
What is market research?
The process of gathering, analyzing, and interpreting information about a market.
True or False: Market research helps businesses understand consumer needs and preferences.
True
What are the two main types of market research?
Primary research and secondary research.
Fill in the blank: _____ research involves collecting new data directly from sources.
Primary
What is the importance of financial forecasting in a business plan?
It helps predict future revenues, expenses, and profitability.
Multiple Choice: Which financial statement shows a company’s revenues and expenses over a specific period? A) Balance sheet B) Income statement C) Cash flow statement D) Statement of equity
B) Income statement
What is meant by ‘cash flow’?
The total amount of money being transferred into and out of a business.
True or False: Positive cash flow is necessary for a business to sustain operations.
True
What is a break-even analysis?
A calculation to determine the sales volume at which total revenues equal total costs.
Fill in the blank: The break-even point is where _____ equals costs.
revenue
What are fixed costs?
Expenses that do not change with the level of goods or services produced.
Multiple Choice: Which of the following is an example of a variable cost? A) Rent B) Salaries C) Raw materials D) Insurance
C) Raw materials
What is the role of marketing in putting a business idea into practice?
To promote the business and attract customers to its products or services.
True or False: Branding is a part of marketing strategy.
True
What is a unique selling proposition (USP)?
A factor that differentiates a product from its competitors.
Fill in the blank: A _____ is a detailed description of a potential customer.
customer persona
What does SWOT analysis stand for?💪 🤒 ↕️ 😈
Strengths, Weaknesses, Opportunities, Threats.
Multiple Choice: Which part of SWOT analysis identifies internal factors? A) Opportunities B) Threats C) Strengths D) All of the above
C) Strengths
What is the significance of setting SMART objectives?
They ensure that goals are Specific, Measurable, Achievable, Relevant, and Time-bound.
