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← Unit 2: Entrepreneurship: From Mindset to Venture

BEP2O · Unit 2 test review

Entrepreneurship: From Mindset to Venture: Test Review

Everything for the Unit 2 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

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.

Where marks get lost

  • Treating the mindset as a fixed personality ("I'm just not creative") instead of a set of habits you can practise. (The Mindset and the Design Process)
  • Falling in love with the first idea and skipping the research step, so you never find out whether anyone else wants it. (The Mindset and the Design Process)
  • Using a decision matrix whose weights do not add to 100%, or quietly adjusting the weights until your favourite idea wins. (The Mindset and the Design Process)
  • Building an expensive, polished prototype first. A prototype should be cheap enough that you are happy to change it. (The Mindset and the Design Process)
  • Testing only with friends who will say nice things instead of real end users who will tell you what is wrong. (The Mindset and the Design Process)
  • Jumping straight to the first solution without defining the problem or finding its cause, so the fix does not actually solve anything. (Refining and Pitching the Idea)
  • Skipping the evaluate step, so you never find out whether the refinement worked. (Refining and Pitching the Idea)
  • Thinking only about customers and forgetting other stakeholders, such as the school that owns the logo or the neighbours near a market. (Refining and Pitching the Idea)
  • Ending a pitch without an ask, or with a vague one ("any help would be great") instead of a specific amount and purpose. (Refining and Pitching the Idea)
  • Reading a pitch off a page without practising, so it runs too long and the money and ask get cut. (Refining and Pitching the Idea)
  • Setting vague goals like "sell a lot" instead of KPIs with a number and a date. (Planning the Venture: KPIs, Market and Brand)
  • Dividing the target by the actual (80 ÷ 44) instead of the actual by the target (44 ÷ 80). (Planning the Venture: KPIs, Market and Brand)
  • For percent change, dividing by the new value instead of the starting value. (Planning the Venture: KPIs, Market and Brand)
  • Describing the target market as "everyone", which makes it impossible to choose a brand voice, a location or a price. (Planning the Venture: KPIs, Market and Brand)
  • Treating a brand as just a logo, so the colours, voice and social posts all send different messages. (Planning the Venture: KPIs, Market and Brand)
  • Dividing fixed costs by the price ($1,000 ÷ $45) instead of by the contribution ($1,000 ÷ $20). (Start-Up Budget and Break-Even)
  • Rounding a break-even answer such as 58.8 down to 58, which leaves the venture short. (Start-Up Budget and Break-Even)
  • Putting the cost of each blank hoodie in fixed costs, or the heat press in variable costs. (Start-Up Budget and Break-Even)
  • Leaving the first batch of inventory out of the start-up budget, so the owner runs out of money before the first sale. (Start-Up Budget and Break-Even)
  • Thinking break-even means making money. At break-even, profit is exactly zero. (Start-Up Budget and Break-Even)
  • Borrowing from family without writing down the amount and repayment date, which leads to arguments later. (Funding, Launching and Selling Ethically)
  • Spending grant or prize money on things its conditions do not allow. (Funding, Launching and Selling Ethically)
  • Setting KPIs before launch and then never checking them, so problems are spotted too late to fix. (Funding, Launching and Selling Ethically)
  • Using fake scarcity ("only two left!") or a hidden fee to close a sale, which breaks trust and can break the law. (Funding, Launching and Selling Ethically)
  • Talking to a person's companion instead of to the customer, or assuming what help someone with a disability needs instead of asking. (Funding, Launching and Selling Ethically)

Practice test

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

  1. The Mindset and the Design Process
    1
    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
  2. The Mindset and the Design Process
    2
    Check Leila's score for dog walking: demand 4 (weight 40%), start-up cost 5 (20%), skills 3 (25%), time 2 (15%). Give the weighted score to two decimal places.
  3. The Mindset and the Design Process
    3
    Why do lived experiences make such good sources of venture ideas?
  4. The Mindset and the Design Process
    4
    Which is the best prototype for a new tutoring service?
  5. The Mindset and the Design Process
    5
    In a weighted decision matrix, what is the weight of a criterion?
  6. Refining and Pitching the Idea
    6
    Put the problem-solving steps in order.
    1. 1Implement it
    2. 2Choose a solution
    3. 3Evaluate the result
    4. 4Define the problem
    5. 5Research causes
    6. 6Generate solutions
  7. Refining and Pitching the Idea
    7
    Put the steps of the pitch process in order.
    1. 1Gather feedback
    2. 2Present
    3. 3Plan next steps
    4. 4Identify supports
    5. 5Develop the pitch
    6. 6Practise
  8. Refining and Pitching the Idea
    8
    Which of these is an internal stakeholder of Grad Gear?
  9. Refining and Pitching the Idea
    9
    Leila fixes the cracking print but never runs another wash test. Which step did she skip?
  10. Refining and Pitching the Idea
    10
    The print cost per hoodie rises from $5 to $6 after refining. By how many dollars does the cost of 80 hoodies rise? Give a whole number.
    $
  11. Planning the Venture: KPIs, Market and Brand
    11
    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.
    %
  12. Planning the Venture: KPIs, Market and Brand
    12
    Weekly orders rose from 40 to 50. What is the percent change? Give a whole number.
    %
  13. Planning the Venture: KPIs, Market and Brand
    13
    For Grad Gear, which is an indirect competitor?
  14. Planning the Venture: KPIs, Market and Brand
    14
    Leila realizes she has no plan for how customers will pay if they have no cash. Which logistics area is missing?
  15. Planning the Venture: KPIs, Market and Brand
    15
    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
  16. Start-Up Budget and Break-Even
    16
    A cookie stand sells boxes for $8. Each box costs $3 in ingredients and packaging. What is the contribution per box? Give a whole number of dollars.
    $
  17. Start-Up Budget and Break-Even
    17
    A sticker venture has fixed costs of $150, a price of $4 and a variable cost of $1.50 per sticker. How many stickers must it sell to break even? Round up to a whole sticker.
    stickers
  18. Start-Up Budget and Break-Even
    18
    Grad Gear sells only 30 hoodies (contribution $20, fixed costs $1,000). What is the profit? Enter a loss as a negative number.
    $
  19. Start-Up Budget and Break-Even
    19
    Which of these is a variable cost for Grad Gear?
  20. Start-Up Budget and Break-Even
    20
    If the variable cost per unit goes up and the price stays the same, the break-even point...
  21. Funding, Launching and Selling Ethically
    21
    Match each funding source to its main drawback.
    Personal savings
    Loan from family
    Competition prize
    Crowdfunding
  22. Funding, Launching and Selling Ethically
    22
    Grad Gear sold 82 hoodies against an 80-hoodie target. What percent of the target is this? Give your answer to one decimal place.
    %
  23. Funding, Launching and Selling Ethically
    23
    A customer who is blind arrives with a guide dog and a friend. What is the most respectful approach?
  24. Funding, Launching and Selling Ethically
    24
    What is the name for an experienced person who gives a new entrepreneur free advice and guidance?
  25. Funding, Launching and Selling Ethically
    25
    Which statement about Ontario's AODA is accurate?

Endless drill

Fresh numbers every time, for the calculation questions in this unit.

Endless drillnew numbers every time

Generating a problem…

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