What are the definitions and examples of key business concepts like durability, business opportunity, and feasibility?

17. C. Durability A business opportunity that is sustainable over time implies it has durability* and can last in the long run. 18. A. Creating a mobile app for ordering food This is a specific, actionable concept for a product or service, making it a good example of a business idea. 19. B. Conducting market research Identifying a good business idea by observing a need (students wanting lollipops during break) is a form of informal market research* or opportunity recognition. 20. C. Business opportunity A business opportunity* is a favorable set of circumstances that creates a need for a new product, service, or business, indicating a likelihood of starting or expanding. 21. A. Reduces risk by providing a guide for the business Analyzing a business opportunity helps entrepreneurs understand its potential and challenges, which in turn reduces risk* by providing a clearer direction. 22. D. Organisational Feasibility Organisational Feasibility* assesses whether the proposed business has the necessary management expertise, skills, and structure to succeed. 23. B. To evaluate the viability of a business idea The primary purpose of a feasibility study is to determine if a business idea is practical and has the potential for success. 24. A. Forecasting revenue, cost and profit This component of a business plan directly focuses on evaluating the financial projections, including projected incomes. 25. C. Idea generation The entrepreneurial project typically begins with the idea generation* stage, where potential business concepts are conceived. 26. A. Feasibility studies Feasibility studies* are specifically conducted to evaluate whether a business idea is viable and practical. 27. C. Launching Launching* is the stage where the entrepreneur implements the business plan and turns the idea into an operational, real business. 28. A. Cost of capital Before choosing a source of finance, an entrepreneur primarily considers the cost of capital*, which includes interest rates, fees, and equity implications. 29. B. Provides resources to run and grow the business The main benefit of finance for an entrepreneur is to provide the necessary resources* (capital) to operate, invest, and expand the business. 30. A. Reduces financial risk Effective financial planning helps in managing funds, anticipating financial challenges, and making informed decisions, thereby reducing financial risk*. 31. C. Income statement The income statement* (also known as the profit and loss statement) reports a company's revenues, expenses, and net profit or loss over a period, thus showing its profitability. 32. A. 210,000F Step 1: Identify the salary and expenses. Salary = 250,000F Expenses = 40,000F Step 2: Calculate the income left by subtracting expenses from the salary. Income left = Salary - Expenses Income left = 250,000F - 40,000F Income left = 210,000F The income left is 210,000F.