Cautiousness is a bad quality for an entrepreneur as it is the opposite of risk taking, which means you wont grab opportunities, and wont be profitable for a business. Because this is a key downfall for an entrepreneur then they will not last within a business. The answer isn't A, because resilience means persevering and not giving up which is a good quality for an entrepreneur.
Having and owning your own business can use up a lot of somebodies time, and demands great responsibility. The time consuming activities such as sorting out cash flows and managing the finance of a company can really take up a lot of time. The answer is not D because if you sell a business it will keep you clear of debts and other costs which will reduce capital ...view middle of the document...
This is because people tend to find the cheapest possible price they can, and the product becomes unaffordable. The answer wouldn't be D, as if demand is falling for that product, then the contribution would also fall, because people don't want to buy the product.
Secondary research, is research that already exists by an external source. The national census is made by the government, for surveys, but it is not just used for business. The answer wouldn't be D as the information is being asked there and then and isn't already presented like the national Census.
Interest rates, are the rate that a person has to pay on top of a loan that they have taken out. If interest rates fall, then that makes it cheaper for a business to borrow money as they don't have to pay as much money back. This puts a business in a positive position. The answer wouldn't be B as increasing staff wages would not benefit the company and may actually hinder their revenue!
A cash flow forecast, is a forecast of monthly payments in and out of a business, which helps a business plan extra loan paybacks, and other finance options. Because the business is new, a cash flow forecast is essential, so that they can see predicted sales, and even use it as evidence to banks to increase credibility. The answer wouldn't be C as this is the start of a business and it would be better to create a forecast of all incomings and outgoings.
Estimating profitability, is a company predicting the profits that they will make, when they are well known. Whereas business positioning, takes int account where a business is and how well it will do. Things that a company would think of is the price and product quality. The answer wouldn't be C as market mapping is business positioning.