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QLDBusiness StudiesQuick questions
Unit 1: Business creation
Quick questions on Business planning and feasibility analysis (QCE Business Unit 1)
9short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is feasibility analysis?Show answer
A feasibility analysis is conducted before or alongside the plan to test whether the idea is genuinely viable. It examines four dimensions.
What is step 1: market analysis?Show answer
Size the local and tourist demand, profile the craft-beer customer, and map competing breweries and venues. Justification: confirms there is enough demand to support another entrant and identifies a positioning gap.
What is step 2: feasibility analysis?Show answer
Test market, financial, operational and legal feasibility. Justification: a brewery is capital-intensive and heavily regulated (liquor licensing, food safety, excise), so an early viability test prevents a costly mistake.
What is step 3: financial plan with break-even and cash-flow forecast?Show answer
Justification: brewing equipment and stock require large upfront capital, and revenue builds slowly, so the founder must confirm there is enough cash to survive the ramp-up.
What is step 4: operations plan?Show answer
Choose a site, suppliers (malt, hops, packaging) and the production process. Justification: secures the supply chain and confirms the venue can meet planned volumes.
What is step 5: full business plan for finance?Show answer
Combine the above into a document for the bank or investors. Justification: external finance is almost certain to be required, and the lender will demand a credible plan.
What is q1?Show answer
State two purposes of a business plan. [2 marks]
What is q2?Show answer
Describe three components of a business plan and explain what each contributes. [6 marks]
What is q3?Show answer
Explain how feasibility analysis reduces the risk of business failure. Use an example. [4 marks]