Business Plan

17 Grade 9 Pre-Technical Studies questions on Business Plan, with worked marking schemes. 17 questions are available on this topic in full.

1. Question 1

   1 mark

   After identifying a business idea, Halima writes a document describing her business, its goals and how she will run it. This document is called a:

   A. Bank statement

   B. Business plan

   C. Delivery note

   D. Warranty card

   (1 mark)

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2. Question 2

   1 mark

   The money an owner or investor puts into a business to start or expand it is called:

   A. Profit

   B. Capital

   C. Debt only

   D. Loss

   (1 mark)

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3. Question 3

   1 mark

   In a business plan, the section that identifies the target customers, competitors and demand for the product is the:

   A. Cover page

   B. Marketing plan

   C. Executive summary

   D. Business name

   (1 mark)

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4. Question 4

   1 mark

   A short statement at the beginning of a business plan that summarises the whole plan for the reader is the:

   A. Marketing mix

   B. Balance sheet

   C. Executive summary

   D. Appendix

   (1 mark)

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5. Question 5

   5 marks

   A young entrepreneur wants to open a stationery shop near a school. (a) Explain two factors she should consider when choosing the location of the business. (4 marks) (b) State one risk she may face in the business. (1 mark)

   (5 marks)

   Marking scheme

   (a) Any two, explained (2 marks each): nearness to customers/market - a site near the school ensures steady demand; availability of security - to protect stock and money; accessibility/transport - so customers and supplies can reach easily; presence of competitors - to gauge competition; cost of rent - to keep costs affordable. (b) Any one risk (1 mark): losses; competition; theft; low sales/poor demand; damage or expiry of stock; price changes.

6. Question 6

   5 marks

   A young entrepreneur in Grade 9 wants to start a small business selling school snacks and has decided to write a business plan first.

   (a) State what a business plan is. (2 marks)

   (b) Give THREE components (parts) that the entrepreneur should include in the business plan. (3 marks)

   (5 marks)

   Marking scheme

   (a) A business plan is a written document that describes a business, its objectives/goals and the strategies or steps that will be used to achieve them, including how the business will be set up, financed and operated. (2 marks) (b) Any THREE of (1 mark each): executive summary; business description/name and nature; products or services offered; market analysis / marketing plan; management and organisation plan; production/operations plan; financial plan (capital required, expected costs and income); objectives/goals. (3 marks)

7. Question 7

   6 marks

   A learner intends to start a small business selling fruit juice to fellow learners and is preparing a simple business plan.

   (a) State TWO reasons why the learner should prepare a business plan before starting the business. (4 marks)

   (b) Name ONE component the learner should include that describes the goods to be sold. (2 marks)

   (6 marks)

   Marking scheme

   (a) Reasons (any TWO, 2 marks each): - A business plan acts as a guide/road map, helping the learner set clear goals and the steps to achieve them. - It helps the learner estimate the money (capital) needed and plan how to raise and use it, reducing the risk of failure. - It can be used to convince/attract lenders, investors or supporters to provide funds or support. (b) The product/service description (the section of the business plan that describes the goods, i.e. the fruit juice, to be sold). (2 marks)

8. Question 8

   1 mark

   A learner is writing a business plan for a poultry venture. Which section of the business plan describes how the products will be priced, promoted and sold to customers?

   A. The executive summary

   B. The marketing plan

   C. The financial statement of past years

   D. The table of contents

   (1 mark)

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9. Question 9

   1 mark

   When Musyoka lowers his price, improves quality and advertises to attract more customers than rival sellers, he is responding to:

   A. Taxation

   B. Competition

   C. Depreciation

   D. Inflation only

   (1 mark)

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10. Question 10

    5 marks

    Naliaka intends to start a small vegetable-selling business near her home. (a) Define a business plan. (2 marks) (b) State three components of a business plan. (3 marks)

    (5 marks)

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11. Question 11

    1 mark

    Which of the following is a MAIN reason for preparing a business plan before starting a business?

    A. It guarantees the business will never fail

    B. It replaces the need to work hard

    C. It removes all business competition

    D. It acts as a guide and helps attract funding

    (1 mark)

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12. Question 12

    1 mark

    A learner is preparing a business plan for a small soap-making venture. Which section of the business plan describes how the products will be priced, promoted and sold?

    A. The executive summary

    B. The table of contents

    C. The marketing plan

    D. The business name only

    (1 mark)

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13. Question 13

    1 mark

    Which of the following BEST describes an entrepreneur?

    A. A person who identifies an opportunity and takes the risk of starting a business

    B. A person employed to guard a shop

    C. A government tax officer

    D. A customer who buys goods

    (1 mark)

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14. Question 14

    1 mark

    The part of a business plan that shows expected income, expenses and profit over a period is the:

    A. Business logo

    B. Financial plan

    C. Vision statement

    D. Organisation chart

    (1 mark)

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15. Question 15

    6 marks

    Explain three benefits of preparing a business plan before starting a business. (6 marks)

    (6 marks)

    Marking scheme

    Any three, each explained (2 marks each): acts as a guide/roadmap that directs the running of the business; helps in acquiring funding/loans as financiers assess the plan; helps set clear goals and measure progress; helps identify risks and challenges in advance so they can be planned for; assists in proper allocation of resources/finances; helps assess whether the business idea is viable/profitable before investing.

16. Question 16

    1 mark

    A learner's business plan shows expected sales of Ksh 50,000 and total costs of Ksh 35,000 for the month. The expected profit is:

    A. Ksh 50,000

    B. Ksh 15,000

    C. Ksh 85,000

    D. Ksh 35,000

    (1 mark)

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17. Question 17

    5 marks

    Barasa's snack business had total sales of Ksh 24,000 in a month. His costs were: ingredients Ksh 10,000, packaging Ksh 3,000 and transport Ksh 2,000. (a) Calculate his total costs. (2 marks) (b) Calculate his profit for the month. (2 marks) (c) State one way he could increase his profit. (1 mark)

    (5 marks)

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