What is the primary purpose of developing a detailed business plan before starting a business?

To secure funding from investors To comply with government regulations To define target market and outline strategies To attract potential employees

Why is conducting market research crucial in the initial stages of starting a business?

To identify potential legal challenges To understand customer needs and competition To determine the most suitable business structure To forecast long-term market trends

What is the significance of registering a business and obtaining necessary licenses?

To gain access to exclusive government grants To establish legal legitimacy and compliance To secure favorable loan terms from banks To build a strong brand reputation

Which of the following is NOT considered a significant risk factor when starting a business?

Financial risk Market risk Operational risk Technological risk

What is the key takeaway regarding the timing of starting a business?

Launching during peak seasons guarantees success Personal circumstances should not influence the decision Thorough research and a solid plan are essential External factors are irrelevant in the decision-making process