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← Unit 1: The Entrepreneurial Mindset

BEM1O · Unit 1 test review

The Entrepreneurial Mindset: Test Review

Everything for the Unit 1 test on one page: the key facts from all 5 lessons, the mistakes that cost the most marks, and a practice test that points you back to the lessons you need.

Key facts

What Is an Entrepreneurial Mindset?

  • An entrepreneurial mindset is a learnable way of thinking that helps you notice opportunities and act on them.
  • The eight elements: future-oriented; recognizing opportunities; communicating and collaborating; critical thinking and problem solving; anticipating and managing risk; dealing with adversity and preparing for growth; creativity; lifelong learner.
  • An enterprising person shows initiative and creativity in any role. An entrepreneur also starts and owns a venture and takes its financial risk.
  • An intrapreneur acts like an entrepreneur inside an organization they do not own; the employer takes the risk.
  • A social entrepreneur starts a venture mainly to solve a social or environmental problem.

Canadian Entrepreneurs and Their Stories

  • To innovate is to improve something that exists or find a new use for it; an invention is something brand new.
  • The innovation pattern: a problem you notice + a skill or experience you have + a risk you take.
  • Joseph-Armand Bombardier (Quebec) built snow vehicles; his work led to the Ski-Doo (1959). Ron Foxcroft (Hamilton) developed the pea-less Fox 40 whistle.
  • Sean McCormick, a Métis entrepreneur, founded Manitobah Mukluks in Winnipeg. Tobi Lütke and his co-founders built Shopify after creating software to sell snowboards online.
  • Guy Laliberté and Gilles Ste-Croix co-founded Cirque du Soleil in 1984.

Assessing Your Entrepreneurial Potential

  • A self-assessment is an honest check of your own skills and experiences; the pattern of high and low scores matters more than the total.
  • Scores of 4 or 5 are strengths to use now; scores of 1 or 2 are areas to grow with a plan.
  • SMART goals are Specific, Measurable, Achievable, Relevant and Time-bound.
  • Ways to grow: a mentor, volunteering, a small venture, online learning, clubs and competitions.
  • A growth plan lists strengths, skills to build, actions, a timeline and regular check-ins.

Business Ownership Structures

  • Unlimited liability: the owner's personal belongings can pay business debts. Limited liability: owners can lose only what they invested.
  • Sole proprietorships and general partnerships have unlimited liability; corporations and co-operatives have limited liability.
  • Corporations are owned by shareholders and can raise large amounts of money by selling shares.
  • Co-operatives give one vote per member; franchisees pay fees to use a franchisor's brand and system.
  • Social enterprises and not-for-profits put their earnings toward a social or environmental mission.

Risk, Failure and Bouncing Back

  • Risk is the chance that something will not go as planned and you will lose time, money or effort.
  • A calculated risk is thought through, affordable and tested small; a reckless risk is none of these.
  • Lower risk by testing small, setting a budget limit, having a backup plan, borrowing or renting first, and getting feedback early.
  • A structured reflection asks: What happened? Why did it happen? What will I change?
  • A growth mindset is the belief that abilities improve with effort; the word 'yet' turns a fixed statement into a growth one.

Where marks get lost

  • Thinking you must be outgoing or a natural leader to have an entrepreneurial mindset. It is a set of habits that anyone can practise. (What Is an Entrepreneurial Mindset?)
  • Using 'entrepreneur' for anyone with a good idea. An entrepreneur also starts and owns the venture and takes the financial risk. (What Is an Entrepreneurial Mindset?)
  • Mixing up intrapreneur and entrepreneur. Ask who pays and who owns: if the employer does, the person is an intrapreneur. (What Is an Entrepreneurial Mindset?)
  • Assuming a social entrepreneur cannot earn money. Many do; the difference is that the money serves the mission. (What Is an Entrepreneurial Mindset?)
  • Confusing 'recognizing opportunities' with 'creativity'. Noticing a need is recognizing an opportunity; inventing a new way to meet it is creativity. (What Is an Entrepreneurial Mindset?)
  • Thinking entrepreneurs succeed because of luck alone. In each story the founder's own problem and skill pointed the way. (Canadian Entrepreneurs and Their Stories)
  • Confusing invention with innovation. The Fox 40 improved the whistle, which already existed, so it is an innovation. (Canadian Entrepreneurs and Their Stories)
  • Adding details about real people that you are not sure of. When you write about a real entrepreneur, use only facts you can check. (Canadian Entrepreneurs and Their Stories)
  • Leaving out the risk. Every story includes time or money put into an idea that might not have worked. (Canadian Entrepreneurs and Their Stories)
  • Giving yourself all 5s, or all 1s. An honest mix is far more useful than a flattering or harsh score. (Assessing Your Entrepreneurial Potential)
  • Focusing only on the total score. The pattern of strengths and areas to grow is what you plan from. (Assessing Your Entrepreneurial Potential)
  • Writing goals that are not measurable, such as 'be more confident', so you can never tell if you reached them. (Assessing Your Entrepreneurial Potential)
  • Trying to fix every weak area at once. Pick one or two and plan specific actions for them. (Assessing Your Entrepreneurial Potential)
  • Forgetting to check in. A plan you never review quickly stops being followed. (Assessing Your Entrepreneurial Potential)
  • Thinking 'limited liability' means the business has limited debt. It means the owners' personal losses are limited to what they invested. (Business Ownership Structures)
  • Assuming partners automatically split profit 50/50. Partners can agree to any split, which is why a written agreement matters. (Business Ownership Structures)
  • Calling every chain restaurant location 'owned by the company'. Many locations are franchises owned by local franchisees. (Business Ownership Structures)
  • Believing a not-for-profit cannot earn money. It can; it just puts the extra money back into its mission instead of paying owners. (Business Ownership Structures)
  • Choosing a corporation for a tiny, low-risk venture just because it sounds professional, and paying costs the business does not need yet. (Business Ownership Structures)
  • Thinking entrepreneurs love risk. Good entrepreneurs manage risk; they take calculated risks, not reckless ones. (Risk, Failure and Bouncing Back)
  • Spending more than you can afford to lose on a first try instead of testing small. (Risk, Failure and Bouncing Back)
  • Writing a reflection that blames other people ('nobody came because they're boring') instead of finding causes you can change. (Risk, Failure and Bouncing Back)
  • Treating one failure as proof you are not an entrepreneur, instead of as information for the next attempt. (Risk, Failure and Bouncing Back)
  • Making a 'what I'll change' list that is vague, such as 'do better', instead of a specific action with a time. (Risk, Failure and Bouncing Back)

Practice test

25 questions from across the unit. Each one shows the lesson it comes from.

  1. What Is an Entrepreneurial Mindset?
    1
    Which statement about the entrepreneurial mindset is TRUE?
  2. What Is an Entrepreneurial Mindset?
    2
    Aisha's babysitting customers keep cancelling. She asks them why and learns they forget the booking. She starts sending text reminders. Which element does this show most clearly?
  3. What Is an Entrepreneurial Mindset?
    3
    What is the main difference between an enterprising person and an entrepreneur?
  4. What Is an Entrepreneurial Mindset?
    4
    A student starts a venture that sells bracelets and gives all the profit to a local animal shelter. She is best described as...
  5. What Is an Entrepreneurial Mindset?
    5
    Rain cancels the club's outdoor car wash. Instead of giving up, the club books a covered area for next time. Which element is this?
  6. Canadian Entrepreneurs and Their Stories
    6
    Match each entrepreneur to the venture.
    Joseph-Armand Bombardier
    Ron Foxcroft
    Sean McCormick
    Tobi Lütke
    Guy Laliberté
  7. Canadian Entrepreneurs and Their Stories
    7
    Shopify began when its founders...
  8. Canadian Entrepreneurs and Their Stories
    8
    Put the parts of the innovation pattern in the order they usually happen.
    1. 1Connect it to a skill or experience you have
    2. 2Learn from the result and improve
    3. 3Take a risk to try a solution
    4. 4Notice a problem
  9. Canadian Entrepreneurs and Their Stories
    9
    What did Cirque du Soleil's founders change about the circus?
  10. Canadian Entrepreneurs and Their Stories
    10
    Aisha babysits and notices parents struggle to find fun, screen-free activities for kids. Using the innovation pattern, which is her best next step?
  11. Assessing Your Entrepreneurial Potential
    11
    Priya rates herself on 8 statements from 1 to 5: 5, 4, 2, 3, 5, 4, 1, 4. What is her total score?
  12. Assessing Your Entrepreneurial Potential
    12
    In Priya's scores (5, 4, 2, 3, 5, 4, 1, 4), how many statements count as areas to grow (scores of 1 or 2)?
  13. Assessing Your Entrepreneurial Potential
    13
    Which goal is NOT time-bound?
  14. Assessing Your Entrepreneurial Potential
    14
    What do we call an experienced person who gives you advice and support as you grow?
  15. Assessing Your Entrepreneurial Potential
    15
    Maya scores 2 on 'I speak confidently to groups'. Which action is the best fit for her growth plan?
  16. Business Ownership Structures
    16
    Match each structure to its best description.
    Sole proprietorship
    Partnership
    Corporation
    Co-operative
    Franchise
  17. Business Ownership Structures
    17
    Three partners split a profit of $900 as 50%, 30% and 20%. How much does the partner with 30% get, in dollars?
    $
  18. Business Ownership Structures
    18
    Which structure would most help a growing business raise a large amount of money from many investors?
  19. Business Ownership Structures
    19
    A group of farmers jointly buys an expensive grain dryer that each of them uses. Each farmer gets one vote on how it is run. This is best organized as...
  20. Business Ownership Structures
    20
    A student club sells reusable water bottles and puts all its earnings toward clean-water projects. Which description fits best?
  21. Risk, Failure and Bouncing Back
    21
    Which is a calculated risk?
  22. Risk, Failure and Bouncing Back
    22
    Testing 12 phone stands costs $9 in materials. Making 60 costs $45. How many dollars less are at risk with the small test?
    $
  23. Risk, Failure and Bouncing Back
    23
    Match each risk-lowering strategy to an example.
    Test small
    Set a budget limit
    Have a backup plan
    Borrow or rent first
  24. Risk, Failure and Bouncing Back
    24
    Fill in the growth-mindset word: 'I'm not good at pitching ___.'
  25. Risk, Failure and Bouncing Back
    25
    What is the best way to think about a first venture that fails?

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