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Running a business activity in a community context · Part 2 of 3
9 exam-style questions with model answers, plus 15 quick multi-choice questions — every question on this part of the standard, grouped by the 3 pages of notes they come from.
Write a full answer before you reveal the model one. That comparison is where the learning happens.
State the sections a business plan for this standard must contain, and explain what belongs in the executive summary.
Explain why business goals in this plan must be measurable, and why the plan should also state priorities.
A group's plan states its goals, costs and roles clearly, but nothing about what could go wrong.
Discuss the weakness this creates, and what a comprehensive plan would add.
Explain what a group should include in the marketing section of its business plan.
A group sets its price below its unit cost so that everyone in the community can afford the product.
Explain the consequences of this decision and how the group should plan for it.
A group assigns permanent roles based on who volunteered first, with one person responsible for each task.
Discuss the weaknesses of this approach and how the people section should be designed.
A group has fixed costs of $120 and variable costs of $2.50 per unit, and plans to produce 100 units.
Calculate the unit cost and explain what it tells the group.
Explain why a business activity can be planned to make a surplus and still run out of money, and what the plan should include to prevent this.
A group's cycle one plan has a planned surplus of $23 on $400 of revenue, and depends on selling every unit produced.
Discuss the risk in this plan and justify what the group should change.