Go Jewels is opening another shop in the next town - Edexcel - GCSE Business - Question 13 - 2018 - Paper 1
Question 13
Go Jewels is opening another shop in the next town. A business plan is being produced.
Which two of the following are the main reasons for producing a business plan... show full transcript
Worked Solution & Example Answer:Go Jewels is opening another shop in the next town - Edexcel - GCSE Business - Question 13 - 2018 - Paper 1
Step 1
A To include personal details of staff who will be employed
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This option is not a main reason for producing a business plan. While personal details may be included in the plan, it does not represent a core purpose.
Step 2
C To reduce the chance of the business failing
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This is one of the main reasons for producing a business plan. A well-structured business plan helps identify potential risks and strategies to mitigate them, therefore reducing the chances of failure.
Step 3
D To guarantee that the business makes a profit
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While a business plan can help outline pathways to profitability, it cannot guarantee profits. Therefore, this is not a main reason for creating a business plan.
Step 4
E To help gain potential investors
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This is another main reason for producing a business plan. A comprehensive business plan presents the business idea clearly, and can attract investors by demonstrating the potential for return on investment.
Step 5
B To provide an opportunity to attract more customers
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While a business plan may indirectly assist in understanding the target market and strategies to attract customers, it is not primarily aimed at customer attraction.
