Deca Entrepreneurship Exam Solved
Correctly To Score A+
Identify the impact of small business/entrepreneurship on market economies (EC:065)
(CS) CORRECT ANSWERS They produce most of the sales, revenue, jobs, new jobs,
make up most businesses, and are unaffected by economic shifts. They are the roots of
our economy.
Explain the concept of private enterprise (EC:009) (CS) CORRECT ANSWERS The
supply and demand system of a free-market economic system but it includes
government intervention through taxes, regulations, and halting monopolies.
Identify factors affecting a business's profit (EC:010) (CS) CORRECT ANSWERS You
determine what factors are affecting the cost and what factors are affecting the revenue.
Determine factors affecting business risk (EC:011) (CS) CORRECT ANSWERS
competition - who else is selling similar products/how much market share do they have
change in consumer demand - self explanatory
poor management - mismanaging employees (ethics and/or productivity wise)
human factors - stealing, mistakes, lies, etc.
tech usage - how heavily do you rely on tech/how likely is that tech to fail
policy changes - government laws, regulations, etc.
natural disasters - self explanatory
Explain the concept of competition (EC:012) (CS) CORRECT ANSWERS Competition
in the other organizations/businesses selling similar products/services as you
Some benefits of competition are:
Sets market standards
Shows you who your potential customers and/or consumers are
Shows possible gaps in what's currently being offered
Shows where you and your business could provide more value
Determine the relationship between government and business (EC:008) (CS)
CORRECT ANSWERS Governments profits off of business via taxes and they regulate
business to stop monopolies and other major business issues.
Describe the nature of taxes (EC:072) (SP) CORRECT ANSWERS Taxes are money
paid to the government whether it be on exchanges or assets, they go into
governmental services and projects which are meant to help the population (like roads,
public attorneys, police, etc.)
Describe the concept of economies of scale (EC:077) (MN) CORRECT ANSWERS
Fixed costs, or costs that stay the same no matter how much of your good or service
,you produce (like rent for an office space), allow your cost-per-unit (CPU) to get lower
and lower as you scale up
Ex:
I'm selling x at $10 per unit
I pay $3 on materials per unit and $100 rent per month
If I sell 10 units, my CPU is $13 (10 sold units = $30 on material + $100 on rent)
If I sell 100 units, my CPU is $4 (100 sold units= $300 on material + $100 on rent)
Describe the nature of entrepreneurship (EN:039) (SP) CORRECT ANSWERS Starting
a business or organization from the ground up generally with some financial risk in
exchange for the hope of profit.
Explain the role requirements of entrepreneurs and owners (EN:040) (SP) CORRECT
ANSWERS Strong leadership - patience, vision, critical thinking, communication
Well-versed in business - decent amount of knowledge on Operations, Marketing,
Finances, and R&D
Describe the use of business ethics in entrepreneurship (EN:044) (SP) CORRECT
ANSWERS Business ethics is doing what is moral even when you aren't legally required
to do so.
If you don't keep them in check it can lead to lack of respect from your employees,
employee tensions and mistakes, unhappy customers, a slandered brand image, and
worsened relationships with your suppliers
Describe small-business opportunities in international trade (EN:041) (SP) CORRECT
ANSWERS Introduction to an international market
Larger market
You can charge higher (bc you are exporting)
New problems to solve and potential products
Less competition
More resources
Explain the need for entrepreneurial discovery (EN:001) (ON) CORRECT ANSWERS
What is it?
The process of systemically scanning for changes (tech, political, regulatory, social,
demographic, etc.) to discover opportunities to produce new goods/services
Why is it needed?
-Increases market competition
-Inspires more innovation
-Leads to industrial progress
-Increases jobs and production
Discuss entrepreneurial discovery processes (EN:002) (ON) CORRECT ANSWERS
Spot the opportunity (tech, political, regulatory, social, demographic, etc.)
,Assess it
(also identify whether it is in an existing or emerging sector)
Assess global trends and opportunities for business ventures (EN:003) (ON) CORRECT
ANSWERS Population
Enrichment
Warfare
Government
Poverty
Resources
Forests
Food
Cities
Safety
Determine opportunities for venture creation (EN:004) (ON) CORRECT ANSWERS
Identify an idea
understand the opportunity space around the idea
look for an idea in a fast-growing opportunity space
Assess opportunities for venture creation (EN:005) (ON CORRECT ANSWERS SWOT
Matrix
Pricing Matrix
Boston Matrix
Ansoff Matrix
(if you don't know these check out "two teachers" on YT, they explain them)
Generate venture ideas (EN:006) (ON) CORRECT ANSWERS Come up with the idea
Think outside the box
Do market research
Socialize and network
Determine feasibility of venture ideas (EN:038) (ON) CORRECT ANSWERS TMMD
Analysis
Time - How much time will it take | How much time do you have
Money - How much money needs to be invested | How much are you willing to invest |
How profitable will it be
Market - Is the market growing, neutral, or shrinking | What is the market size right now |
How competitive/saturated is it
Determination - How determined are you to succeed at this idea | Given the struggles
you could potentially face, will your determination be enough
Describe entrepreneurial planning considerations (EN:007) (ON) CORRECT
ANSWERS Identify the idea
Create a business plan
, Forecast
Funding
Marketing
Feasibility
Explain tools used by entrepreneurs for venture planning (EN:008) (ON) CORRECT
ANSWERS SWOT Analysis
PESTLE Analysis
7s Mckinsey Model
What is a SWOT analysis? What is PESTLE Analysis? What is McKinsey 7s Model?
(Not Deca but good to know) CORRECT ANSWERS SWOT-
Strengths (Internal), Weaknesses (internal), Opportunities (External), Threats (External)
Internal things to be sorted:
Market, Finance, and Consumer Standpoint (Brand Image), 7s McKinsey model
External things to be sorted:
PESTLE
PESTLE = Political Economic Social Technological Legal and Environmental
7s McKinsey Model-
Hard factors or things in your complete control -
Structure, Systems, Strategy
Soft factors or things out of your complete control -
Staff, Style (Management Style), Skill, Shared Values
Assess start-up requirements (EN:009) (ON) CORRECT ANSWERS Legal structure
Business plan
Company bank account
Obtain permits and licenses
Leasing or buying office space
Hire employees
Set up accounting and record keeping systems
Assess risks associated with venture (EN:010) (ON) CORRECT ANSWERS Market
Adoption Risk
Market Timing Risk
Market Size Risk
Execution Risk
Technology Risk
Business Model Risk
Platform Risk
Finance Risk
Leadership Risk
Defensibility Risk
Correctly To Score A+
Identify the impact of small business/entrepreneurship on market economies (EC:065)
(CS) CORRECT ANSWERS They produce most of the sales, revenue, jobs, new jobs,
make up most businesses, and are unaffected by economic shifts. They are the roots of
our economy.
Explain the concept of private enterprise (EC:009) (CS) CORRECT ANSWERS The
supply and demand system of a free-market economic system but it includes
government intervention through taxes, regulations, and halting monopolies.
Identify factors affecting a business's profit (EC:010) (CS) CORRECT ANSWERS You
determine what factors are affecting the cost and what factors are affecting the revenue.
Determine factors affecting business risk (EC:011) (CS) CORRECT ANSWERS
competition - who else is selling similar products/how much market share do they have
change in consumer demand - self explanatory
poor management - mismanaging employees (ethics and/or productivity wise)
human factors - stealing, mistakes, lies, etc.
tech usage - how heavily do you rely on tech/how likely is that tech to fail
policy changes - government laws, regulations, etc.
natural disasters - self explanatory
Explain the concept of competition (EC:012) (CS) CORRECT ANSWERS Competition
in the other organizations/businesses selling similar products/services as you
Some benefits of competition are:
Sets market standards
Shows you who your potential customers and/or consumers are
Shows possible gaps in what's currently being offered
Shows where you and your business could provide more value
Determine the relationship between government and business (EC:008) (CS)
CORRECT ANSWERS Governments profits off of business via taxes and they regulate
business to stop monopolies and other major business issues.
Describe the nature of taxes (EC:072) (SP) CORRECT ANSWERS Taxes are money
paid to the government whether it be on exchanges or assets, they go into
governmental services and projects which are meant to help the population (like roads,
public attorneys, police, etc.)
Describe the concept of economies of scale (EC:077) (MN) CORRECT ANSWERS
Fixed costs, or costs that stay the same no matter how much of your good or service
,you produce (like rent for an office space), allow your cost-per-unit (CPU) to get lower
and lower as you scale up
Ex:
I'm selling x at $10 per unit
I pay $3 on materials per unit and $100 rent per month
If I sell 10 units, my CPU is $13 (10 sold units = $30 on material + $100 on rent)
If I sell 100 units, my CPU is $4 (100 sold units= $300 on material + $100 on rent)
Describe the nature of entrepreneurship (EN:039) (SP) CORRECT ANSWERS Starting
a business or organization from the ground up generally with some financial risk in
exchange for the hope of profit.
Explain the role requirements of entrepreneurs and owners (EN:040) (SP) CORRECT
ANSWERS Strong leadership - patience, vision, critical thinking, communication
Well-versed in business - decent amount of knowledge on Operations, Marketing,
Finances, and R&D
Describe the use of business ethics in entrepreneurship (EN:044) (SP) CORRECT
ANSWERS Business ethics is doing what is moral even when you aren't legally required
to do so.
If you don't keep them in check it can lead to lack of respect from your employees,
employee tensions and mistakes, unhappy customers, a slandered brand image, and
worsened relationships with your suppliers
Describe small-business opportunities in international trade (EN:041) (SP) CORRECT
ANSWERS Introduction to an international market
Larger market
You can charge higher (bc you are exporting)
New problems to solve and potential products
Less competition
More resources
Explain the need for entrepreneurial discovery (EN:001) (ON) CORRECT ANSWERS
What is it?
The process of systemically scanning for changes (tech, political, regulatory, social,
demographic, etc.) to discover opportunities to produce new goods/services
Why is it needed?
-Increases market competition
-Inspires more innovation
-Leads to industrial progress
-Increases jobs and production
Discuss entrepreneurial discovery processes (EN:002) (ON) CORRECT ANSWERS
Spot the opportunity (tech, political, regulatory, social, demographic, etc.)
,Assess it
(also identify whether it is in an existing or emerging sector)
Assess global trends and opportunities for business ventures (EN:003) (ON) CORRECT
ANSWERS Population
Enrichment
Warfare
Government
Poverty
Resources
Forests
Food
Cities
Safety
Determine opportunities for venture creation (EN:004) (ON) CORRECT ANSWERS
Identify an idea
understand the opportunity space around the idea
look for an idea in a fast-growing opportunity space
Assess opportunities for venture creation (EN:005) (ON CORRECT ANSWERS SWOT
Matrix
Pricing Matrix
Boston Matrix
Ansoff Matrix
(if you don't know these check out "two teachers" on YT, they explain them)
Generate venture ideas (EN:006) (ON) CORRECT ANSWERS Come up with the idea
Think outside the box
Do market research
Socialize and network
Determine feasibility of venture ideas (EN:038) (ON) CORRECT ANSWERS TMMD
Analysis
Time - How much time will it take | How much time do you have
Money - How much money needs to be invested | How much are you willing to invest |
How profitable will it be
Market - Is the market growing, neutral, or shrinking | What is the market size right now |
How competitive/saturated is it
Determination - How determined are you to succeed at this idea | Given the struggles
you could potentially face, will your determination be enough
Describe entrepreneurial planning considerations (EN:007) (ON) CORRECT
ANSWERS Identify the idea
Create a business plan
, Forecast
Funding
Marketing
Feasibility
Explain tools used by entrepreneurs for venture planning (EN:008) (ON) CORRECT
ANSWERS SWOT Analysis
PESTLE Analysis
7s Mckinsey Model
What is a SWOT analysis? What is PESTLE Analysis? What is McKinsey 7s Model?
(Not Deca but good to know) CORRECT ANSWERS SWOT-
Strengths (Internal), Weaknesses (internal), Opportunities (External), Threats (External)
Internal things to be sorted:
Market, Finance, and Consumer Standpoint (Brand Image), 7s McKinsey model
External things to be sorted:
PESTLE
PESTLE = Political Economic Social Technological Legal and Environmental
7s McKinsey Model-
Hard factors or things in your complete control -
Structure, Systems, Strategy
Soft factors or things out of your complete control -
Staff, Style (Management Style), Skill, Shared Values
Assess start-up requirements (EN:009) (ON) CORRECT ANSWERS Legal structure
Business plan
Company bank account
Obtain permits and licenses
Leasing or buying office space
Hire employees
Set up accounting and record keeping systems
Assess risks associated with venture (EN:010) (ON) CORRECT ANSWERS Market
Adoption Risk
Market Timing Risk
Market Size Risk
Execution Risk
Technology Risk
Business Model Risk
Platform Risk
Finance Risk
Leadership Risk
Defensibility Risk
