Practice Questions 3:

Enterprise, Business
Growth & Size
i. Primary sector

ii. Tertiary sector

Entrepreneur is a person who organises, operates and takes the risk for a
new business venture.
Characteristic 1:
Grace is creative. She is able to come up with new and original ideas
such as a disposable seat. Her creativity allows her to come up with
different, exciting products that will make her company different
from others.
Characteristic 2:
Grace is hard working. She uses her time to find many ways she earn
money such as making and selling cakes and sweets to her friends.
This characteristic of hardworking will allow her to work long hours
and have short holidays which is needed to make a business
successful.
i. Banks will be more likely to loan or overdraft to help finance her new business.
Preparing new business plans will allow banks to trust Grace that she has control of her
mission, making it easier for Grace to fund her business.

ii. There is lesser chance of losing right of the mission. Planning the financial
requirements and forecasting the sales revenue will help Grace to have higher chances of
success. For example, Grace may not be able to gain profit from her business if she does
not predict her sales revenue.
Changes in the business environment. Since this music concert is outdoors, many
environmental events can affect the success of the disposable chair. This adds to the risk
and uncertainty to this business proposal. For example, it could rain at the time of the
concert, making the chair unusable as it is made of cardboard.

Poor financial management. Because Grace has only done small businesses during
schooling years, she is forced to loan from the bank or from peers in order to fund the
manufacturing of the disposable chairs. However, she might be fail to pay the money back
due to failure to plan cash flows.

Overall, I think Grace might still succeed as she has control of her business and has
already experienced managing a business when she was younger.