3.05: Personal Potential for Entrepreneurship

What is one common reason people choose to become entrepreneurs?

• To avoid working long hours

• To pursue financial independence

• To have a guaranteed income

• To avoid taking risks

Answer explanation

One common reason people choose to become entrepreneurs is to pursue financial independence. This motivation drives individuals to create their own businesses, seeking the potential for greater earnings and control over their financial future.

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DOK Level 1: Recall

Which of the following is a basic characteristic of a good business idea?

• It requires a large initial investment

• It solves a problem or fulfills a need

• It targets a very small audience

• It is similar to existing products

Answer explanation

A good business idea should solve a problem or fulfill a need, as this creates value for customers. The other options either limit potential or do not address customer demands effectively.

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DOK Level 1: Recall

Choose the personal traits that is essential for an entrepreneur.

• Punctuality

• Creativity

• Height

• Musical talent

Answer explanation

Punctuality ensures timely execution of tasks, while creativity drives innovation and problem-solving. Both traits are essential for entrepreneurs to succeed in a competitive environment.

Which of the following best describes an opportunity for an entrepreneur?

• A saturated market with many competitors

• A new trend that has not been explored

• A declining industry

• A product with no demand

Answer explanation

A new trend that has not been explored presents a unique opportunity for entrepreneurs to innovate and capture market share, unlike saturated markets, declining industries, or products with no demand.

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DOK Level 1: Recall

How can you assess your personal potential to become an entrepreneur?

• By evaluating your financial status

• By analyzing your skills and interests

• By comparing yourself to famous entrepreneurs

• By reading business magazines

Answer explanation

To assess your potential as an entrepreneur, analyzing your skills and interests is crucial. This helps you understand what you can offer and where your passions lie, which are key factors in entrepreneurial success.

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DOK Level 2: Skill/Concept

What is a key factor in identifying a good business idea?

• The idea is complex and difficult to understand

• The idea is unique and addresses a specific need

• The idea is similar to existing successful businesses

• The idea requires minimal effort to implement

Answer explanation

A good business idea is unique and addresses a specific need, as it stands out in the market and provides value to customers. This is essential for attracting interest and ensuring potential success.

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DOK Level 2: Skill/Concept

Which of the following strategies can help identify an entrepreneurial opportunity?

• Ignoring market trends

• Conducting market research

• Copying competitors

• Focusing solely on personal interests

Answer explanation

Conducting market research helps identify entrepreneurial opportunities by providing insights into customer needs, market trends, and competition, unlike the other options which may lead to missed opportunities or ineffective strategies.

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DOK Level 2: Skill/Concept

Evaluate the potential of a business idea that involves creating an app for virtual study groups. What factors should be considered?

• The app's color scheme

• The demand for virtual study groups

• The number of similar apps available

• The app's logo design

Answer explanation

The demand for virtual study groups is crucial as it indicates the potential user base and market viability. Understanding this demand helps in assessing whether the app can attract and retain users, making it the most important factor.

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DOK Level 3: Strategic Thinking

Plan a strategy to assess your readiness to become an entrepreneur. What steps would you include?

• Create a detailed business plan

• Analyze personal strengths and weaknesses

• Secure funding from investors

• Hire a team of experts

Answer explanation

Analyzing personal strengths and weaknesses is crucial for assessing entrepreneurial readiness. It helps identify areas for improvement and ensures you leverage your strengths effectively, making it the foundational step in your strategy.

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DOK Level 3: Strategic Thinking

Reason why an entrepreneur should continuously evaluate their business idea.

• To ensure it remains relevant and competitive

• To avoid making any changes

• To increase the complexity of the business

• To reduce the number of customers

Answer explanation

An entrepreneur should continuously evaluate their business idea to ensure it remains relevant and competitive in the market. This helps adapt to changes and meet customer needs effectively.

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DOK Level 3: Strategic Thinking