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BEP2O · Exam review

Launching and Leading a Business Exam Review

A practice exam with questions from all 4 units, then the key facts from every lesson, unit by unit. For a deeper look at one unit, open its test review.

Unit test reviews

  1. Unit 1. Economic Foundations~25%
  2. Unit 2. Entrepreneurship: From Mindset to Venture~30%
  3. Unit 3. Business Functions~25%
  4. Unit 4. Leadership, Projects and Technology~20%

Practice exam

32 questions, the same number from each unit. Each one shows the lesson it comes from.

  1. Unit 1: Needs, Wants, Scarcity and Choice
    1
    Which of these is a need?
  2. Unit 1: Needs, Wants, Scarcity and Choice
    2
    A grocery store adds self-checkout lanes and an app for curbside pickup. Which consumer problem is it mainly responding to?
  3. Unit 1: Supply, Demand and Price
    3
    The price of a video game console falls. What happens to the demand for games for that console?
  4. Unit 1: The Economic Cycle and Market Structures
    4
    Put the phases of the business cycle in order, starting with expansion.
    1. 1Recovery
    2. 2Trough
    3. 3Contraction
    4. 4Expansion
    5. 5Peak
  5. Unit 1: The Economic Cycle and Market Structures
    5
    In a recession, which business is likely to see the smallest drop in sales?
  6. Unit 1: Trade and Government in the Market
    6
    Match each action to who usually does it.
    Issues a local business licence
    Sets Ontario's general minimum wage
    Enforces the Competition Act
    Rates businesses and handles customer complaints
  7. Unit 1: Business in Canada
    7
    Order the steps in making and selling a wooden table from primary to tertiary sector.
    1. 1A workshop building the table
    2. 2Cutting down trees for lumber
    3. 3A furniture store selling the table
  8. Unit 1: Business in Canada
    8
    Which is the best example of a social enterprise?
  9. Unit 2: The Mindset and the Design Process
    9
    Match each action to the mindset element it shows best.
    Learning to use a heat press from online tutorials
    Reprinting a batch after the first one cracked
    Planning designs for next year's grad class
    Asking a friend to run the social media account
  10. Unit 2: The Mindset and the Design Process
    10
    Which is the best prototype for a new tutoring service?
  11. Unit 2: Refining and Pitching the Idea
    11
    Which of these is an internal stakeholder of Grad Gear?
  12. Unit 2: Planning the Venture: KPIs, Market and Brand
    12
    Grad Gear's revenue target is $3,600. Revenue so far is $1,980. What percent of the target is this? Give a whole number.
    %
  13. Unit 2: Planning the Venture: KPIs, Market and Brand
    13
    Order these from widest to narrowest group of customers.
    1. 1Teens who buy hoodies
    2. 2Everyone who buys clothing
    3. 3Grade 12 students at two local schools who want custom grad hoodies
  14. Unit 2: Start-Up Budget and Break-Even
    14
    Grad Gear sells only 30 hoodies (contribution $20, fixed costs $1,000). What is the profit? Enter a loss as a negative number.
    $
  15. Unit 2: Funding, Launching and Selling Ethically
    15
    Grad Gear sold 82 hoodies against an 80-hoodie target. What percent of the target is this? Give your answer to one decimal place.
    %
  16. Unit 2: Funding, Launching and Selling Ethically
    16
    Which statement about Ontario's AODA is accurate?
  17. Unit 3: Operations: Making the Product or Delivering the Service
    17
    Which of these is an output of Class Act Hoodies' production process?
  18. Unit 3: Operations: Making the Product or Delivering the Service
    18
    Put Class Act Hoodies' process steps in order.
    1. 1Fold, bag and label
    2. 2Inspect the hoodie
    3. 3Press onto the hoodie
    4. 4Cut the design
    5. 5Weed the vinyl
  19. Unit 3: Marketing: The Three Cs and Four Ps
    19
    Class Act Hoodies wants a 60% markup on a $26 cost. What price should it charge, to the nearest cent?
    $
  20. Unit 3: Accounting: Tracking Cash and Reading Statements
    20
    A venture starts the week with $240, receives $310 from sales, and pays $185 for supplies and $45 for ads. What is the ending cash balance, in dollars?
    $
  21. Unit 3: Accounting: Tracking Cash and Reading Statements
    21
    Is a loan repayment an expense? Answer yes or no.
  22. Unit 3: Non-Financial Reporting and Impact
    22
    Plastic-free orders rose from 40% to 90%. Which statement is correct?
  23. Unit 3: Managing People
    23
    Which statement about a manager's responsibilities is TRUE?
  24. Unit 3: Managing People
    24
    Which is the best way to handle employees' personal information?
  25. Unit 4: Business Leadership Styles
    25
    Which style is most likely to produce fast decisions but lower team morale if it is used all the time?
  26. Unit 4: Business Leadership Styles
    26
    What is the main risk of using laissez-faire leadership with a brand-new, inexperienced team?
  27. Unit 4: The Project Management Process
    27
    On a RACI chart, who is the Accountable person?
  28. Unit 4: Digital Tools and Data Security
    28
    Match each task to the most suitable tool.
    Tracking the budget and calculating totals
    Taking tap payments at the shop
    Letting the whole team edit the schedule at once
    Designing a poster and a logo
  29. Unit 4: Digital Tools and Data Security
    29
    Put the steps of choosing a tool with a decision matrix in order.
    1. 1Compare totals and check each option's weak spots
    2. 2Multiply scores by weights and add
    3. 3Score each option on each criterion
    4. 4List the options
    5. 5Choose criteria and give each a weight
  30. Unit 4: Business Skills, Other Subjects and Careers
    30
    What is the name for paid on-the-job training under an experienced tradesperson, combined with classroom learning?
  31. Unit 4: How Entrepreneurs Contribute and What They Face
    31
    Match each entrepreneur to their venture.
    Ron Foxcroft
    Sean McCormick
    Tobi Lütke
    Joseph-Armand Bombardier
  32. Unit 4: How Entrepreneurs Contribute and What They Face
    32
    Why can rural and remote internet access be a challenge for entrepreneurs?

Key facts by unit

Unit 1: Economic Foundations

Needs, Wants, Scarcity and Choice

  • Need = something required to survive and live safely (food, water, shelter, clothing, health care). Want = something you would like but could live without.
  • Scarcity = unlimited wants but limited resources (money, time, land, workers, materials).
  • Scarcity forces a choice, and every choice has an opportunity cost: the value of the next-best option given up.
  • Opportunity cost counts only the single next-best option, and it includes time, such as wages you could have earned.
  • Businesses respond to scarcity and wants with new products, pricing (sales, value sizes, higher prices for scarce items) and convenience (delivery, online ordering).

Supply, Demand and Price

  • Law of demand: price up, quantity demanded down. Law of supply: price up, quantity supplied up.
  • Equilibrium: the price where ; on a graph, where the curves cross.
  • Price above equilibrium: surplus . Price below equilibrium: shortage .
  • A change in the product's own price is a movement along a curve; any other factor shifts the whole curve.
  • Demand shifters: income, trends, prices of related goods, number of buyers, expectations. Supply shifters: input costs, technology, number of sellers, weather.
  • Demand right: price and quantity both rise. Supply right: price falls and quantity rises.

The Economic Cycle and Market Structures

  • Business cycle phases in order: expansion, peak, contraction (recession), trough, recovery.
  • Inflation = a general rise in prices. Inflation rate .
  • The Bank of Canada raises its policy interest rate to slow inflation and lowers it to help a weak economy; its inflation target is 2%.
  • Interest for one year
  • Market structures from most to least competition: perfect competition, monopolistic competition, oligopoly, monopoly.
  • Market share

Trade and Government in the Market

  • Export = sold to another country. Import = bought from another country.
  • The United States is Canada's largest trading partner. Major agreements: CUSMA (U.S. and Mexico), CETA (European Union), CPTPP (Asia-Pacific).
  • A tariff is a tax on imports. Cost with tariff .
  • A market failure is when a free market produces a result that is bad for society, such as monopoly power, price-fixing, pollution, unsafe products or very low pay.
  • The Competition Bureau enforces the Competition Act (no price-fixing, no misleading ads); minimum wage, consumer protection, environmental rules, taxes and subsidies also correct failures.
  • The Better Business Bureau is a non-governmental, non-profit organization, not a government agency.

Business in Canada

  • Ownership types: sole proprietorship, partnership, corporation, co-operative, franchise, social enterprise, Crown corporation.
  • Sole proprietors and most partners have unlimited liability; corporation shareholders have limited liability.
  • Primary sector = natural resources; secondary = making products; tertiary = services. Most Canadians work in services.
  • Small business = 1 to 99 employees; medium = 100 to 499; large = 500 or more.
  • Triple bottom line: people, planet, profit. CSR means taking responsibility for effects on all three.
  • TRC Call to Action 92 asks the corporate sector to adopt UNDRIP as a framework for reconciliation and to ensure equitable access to jobs, training and education for Indigenous peoples.
Unit 2: Entrepreneurship: From Mindset to Venture

The Mindset and the Design Process

  • An entrepreneurial mindset has 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, and being a lifelong learner.
  • Your lived experiences (hobbies, jobs, frustrations) are the richest source of venture ideas because you already understand the customer.
  • The design process: generate ideas, research their potential with evaluation criteria, select an idea, create a prototype.
  • Weighted score = the sum of (weight × rating) for every criterion. The highest score wins, but only if the weights reflect your real priorities.
  • A prototype is a cheap early version that real end users test, so you learn before you spend serious money.

Refining and Pitching the Idea

  • Problem-solving process: define the problem, research causes, generate solutions, choose one, implement it, evaluate, and repeat if needed.
  • Check four impacts: social, economic, environmental and ethical.
  • A stakeholder is anyone affected by, or able to affect, the venture; different stakeholders want different things.
  • The pitch process: identify supports, develop the pitch, practise, present, gather feedback, plan next steps.
  • A pitch runs hook, problem, solution, market, competition, money, team, ask, close; the ask names an amount and what it pays for.

Planning the Venture: KPIs, Market and Brand

  • A KPI is a number you track to see whether you are reaching a goal; a target is the value you aim for by a set date.
  • Percent of target = actual ÷ target × 100%.
  • Common KPIs: units sold, revenue, profit, customer satisfaction, repeat customers, social reach.
  • Direct competitors sell nearly the same thing; indirect competitors meet the same need another way.
  • Brand elements (name, logo, colours, voice, personality) combine into one consistent brand identity.
  • Feasibility means the venture can realistically be done: check supplies, location, permissions, schedule, people, payment methods and health and safety.

Start-Up Budget and Break-Even

  • Start-up budget = one-time costs + first-period operating costs (+ a cushion for surprises).
  • Fixed costs stay the same whatever you sell; variable costs rise with every unit.
  • Contribution per unit = price − variable cost per unit.
  • Break-even units = fixed costs ÷ contribution per unit, always rounded up to a whole unit.
  • Profit = units × contribution − fixed costs. Below break-even it is a loss; above it, a profit.

Funding, Launching and Selling Ethically

  • Community supports include savings, family and friends, school or community grants and competitions, youth entrepreneurship programs, crowdfunding and mentors.
  • Borrowed money must be repaid; grants and prizes usually come with conditions on how they are spent.
  • After launch, track cumulative KPI results against targets and change the plan when a number falls behind.
  • Ethical selling uses honest claims, clear prices and a posted refund policy, and never uses pressure tactics.
  • Accessible customer service lets people with disabilities shop with the same ease and dignity as everyone else; Ontario's AODA requires it of organizations.
  • Complaint steps: listen, thank, apologize, ask, fix, follow up, record.
Unit 3: Business Functions

Operations: Making the Product or Delivering the Service

  • Inputs (materials, equipment, labour, money, information) go through a process (ordered steps) to become outputs (products, services and by-products).
  • Time per unit = the sum of the times for every step.
  • Capacity = time available ÷ time per unit (round down to whole units).
  • The bottleneck is the slowest step; improving it speeds up the whole process.
  • Cost per unit = materials per unit + labour per unit, where labour per unit = (minutes ÷ 60) × hourly wage.
  • A good process is efficient, healthy and safe, ethical, and sustainable, with quality checked before the customer sees the product.

Marketing: The Three Cs and Four Ps

  • The three Cs: company (what we do well), customer (who they are and what they need), competition (who else offers it).
  • USP = the one difference customers care about that competitors do not offer.
  • A mission statement says what the business does, for whom and why, built from its USP and brand values.
  • The four Ps: product, price, place, promotion. They must all send the same message to the same target market.
  • Different target markets can get different marketing mixes, but the brand values stay the same.
  • Markup on cost = (price − cost) ÷ cost × 100%; margin = (price − cost) ÷ price × 100%.

Accounting: Tracking Cash and Reading Statements

  • Financial accounting reports to outsiders (lenders, investors, government); management accounting helps insiders make decisions.
  • Ending cash = opening cash + cash in − cash out. The last running balance must match.
  • Net income = revenue − expenses. Owner investments and loans are not revenue; loan repayments and long-lasting equipment are not expenses.
  • Assets = liabilities + owner's equity, and the balance sheet must balance.
  • Profit margin = net income ÷ revenue × 100%.
  • Cash on hand is not the same as profit, and every report must be honest, complete and backed by records.

Non-Financial Reporting and Impact

  • Non-financial reporting measures environmental, social and governance (ESG) impact.
  • Triple bottom line: people, planet and profit.
  • A good measure states what is measured, how, a baseline and a target.
  • Percent change = (new − old) ÷ old × 100%.
  • A change from 40% to 90% is +50 percentage points, which is a 125% increase.
  • Greenwashing means making vague or false environmental claims; honest reports are specific, measured and include bad news.

Managing People

  • The four functions of management: planning, organizing, leading, controlling.
  • Legal responsibilities are set by law; ethical ones by agreed standards; moral ones by personal conscience. The law is the minimum.
  • Ontario's Employment Standards Act sets minimums for wages, hours, breaks, overtime, public holidays and vacation.
  • Ontario's Human Rights Code forbids discrimination on protected grounds in all parts of employment, and employers must accommodate related needs.
  • Under the Occupational Health and Safety Act, workers have the right to know, the right to participate and the right to refuse unsafe work.
  • HR process: get facts, listen, check the rules, weigh options and impacts, decide and explain, document and follow up.
Unit 4: Leadership, Projects and Technology

Business Leadership Styles

  • Leadership style: a leader's usual way of making decisions, directing work and motivating people.
  • Decision scale: autocratic (leader decides) to democratic (team gives input) to laissez-faire (team decides).
  • Transformational = inspiring vision; servant = team's needs first; coaching = building each person's skills.
  • Situational leadership: match the style to urgency, team readiness (competence and commitment), need for buy-in and risk.
  • Every style has a risk: name it when you choose the style so you can guard against it.

The Project Management Process

  • Five stages: initiating (goals), planning (tasks), executing (do the plan), monitoring (track progress), closing (deliver and reflect).
  • Initiating sets goals, deliverables, KPIs, stakeholders and approval; planning sets tasks, resources, schedule, delegation, risks and budget.
  • RACI: Responsible does the work, Accountable makes sure it gets done and approves it (one person only), Consulted gives input, Informed is told.
  • A risk register lists each risk with its likelihood, impact, planned response and owner.
  • Percent of target ; judge a project against the KPIs set at the start, and use feedback to explain the results.

Digital Tools and Data Security

  • Weigh every tool on benefits, limitations, costs (subscription, transaction fees, equipment, learning time) and risks.
  • Security basics: strong unique passwords with a password manager, two-factor authentication, updates, backups.
  • Phishing signs: urgency, a mismatched sender or link, requests for passwords, codes or money.
  • Protect personal information: consent, collect only what you need, store it securely, use it only for the stated purpose (the idea behind Canada's privacy laws such as PIPEDA).
  • Decision matrix: weighted score , with weights adding to 100%.

Business Skills, Other Subjects and Careers

  • Creative thinking generates many ideas; critical thinking examines and tests them. Problem solving needs both.
  • Business skills such as financial literacy, persuasive communication and data analysis support math, English, science, technology and job-skills programs.
  • Employee: works for someone else. Self-employed: works for themselves. Entrepreneur: starts and grows a venture and takes on its risk.
  • Many skilled tradespeople run their own businesses, so they need quoting, budgeting, HST, marketing and record-keeping skills.
  • Portfolio: organized evidence of your competencies and growth, with reflections on what you learned and what comes next.

How Entrepreneurs Contribute and What They Face

  • Ventures can address social, economic, environmental and ethical issues, not just earn profit.
  • Social enterprise: a business whose main purpose is solving a social or environmental problem, reinvesting most profit in that purpose.
  • B Corp certification: an outside review of a company's effect on workers, customers, community and environment, with a required standard and openness about results.
  • Common challenges: access to capital, networks, discrimination and bias, rural internet access, work-life balance.
  • Supports: mentorship, loans and grants, Indigenous business development organizations, women's and newcomers' programs, local business centres.