← 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.
- The Mindset and the Design Process1Match each action to the mindset element it shows best.Learning to use a heat press from online tutorialsReprinting a batch after the first one crackedPlanning designs for next year's grad classAsking a friend to run the social media account
- The Mindset and the Design Process2Check 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.
- The Mindset and the Design Process3Why do lived experiences make such good sources of venture ideas?
- The Mindset and the Design Process4Which is the best prototype for a new tutoring service?
- The Mindset and the Design Process5In a weighted decision matrix, what is the weight of a criterion?
- Refining and Pitching the Idea6Put the problem-solving steps in order.
- 1Implement it
- 2Choose a solution
- 3Evaluate the result
- 4Define the problem
- 5Research causes
- 6Generate solutions
- Refining and Pitching the Idea7Put the steps of the pitch process in order.
- 1Gather feedback
- 2Present
- 3Plan next steps
- 4Identify supports
- 5Develop the pitch
- 6Practise
- Refining and Pitching the Idea8Which of these is an internal stakeholder of Grad Gear?
- Refining and Pitching the Idea9Leila fixes the cracking print but never runs another wash test. Which step did she skip?
- Refining and Pitching the Idea10The print cost per hoodie rises from $5 to $6 after refining. By how many dollars does the cost of 80 hoodies rise? Give a whole number.$
- Planning the Venture: KPIs, Market and Brand11Grad Gear's revenue target is $3,600. Revenue so far is $1,980. What percent of the target is this? Give a whole number.%
- Planning the Venture: KPIs, Market and Brand12Weekly orders rose from 40 to 50. What is the percent change? Give a whole number.%
- Planning the Venture: KPIs, Market and Brand13For Grad Gear, which is an indirect competitor?
- Planning the Venture: KPIs, Market and Brand14Leila realizes she has no plan for how customers will pay if they have no cash. Which logistics area is missing?
- Planning the Venture: KPIs, Market and Brand15Order these from widest to narrowest group of customers.
- 1Teens who buy hoodies
- 2Everyone who buys clothing
- 3Grade 12 students at two local schools who want custom grad hoodies
- Start-Up Budget and Break-Even16A cookie stand sells boxes for $8. Each box costs $3 in ingredients and packaging. What is the contribution per box? Give a whole number of dollars.$
- Start-Up Budget and Break-Even17A 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
- Start-Up Budget and Break-Even18Grad Gear sells only 30 hoodies (contribution $20, fixed costs $1,000). What is the profit? Enter a loss as a negative number.$
- Start-Up Budget and Break-Even19Which of these is a variable cost for Grad Gear?
- Start-Up Budget and Break-Even20If the variable cost per unit goes up and the price stays the same, the break-even point...
- Funding, Launching and Selling Ethically21Match each funding source to its main drawback.Personal savingsLoan from familyCompetition prizeCrowdfunding
- Funding, Launching and Selling Ethically22Grad Gear sold 82 hoodies against an 80-hoodie target. What percent of the target is this? Give your answer to one decimal place.%
- Funding, Launching and Selling Ethically23A customer who is blind arrives with a guide dog and a friend. What is the most respectful approach?
- Funding, Launching and Selling Ethically24What is the name for an experienced person who gives a new entrepreneur free advice and guidance?
- Funding, Launching and Selling Ethically25Which 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…