Knowing When to Stop · seed 1 · A4, ink-friendly. The answer key prints on its own page for grown-ups.

Decide your stop rule before you start

Life Skills · Entrepreneurship · ages 16-18
Name ______________________   Date ____________
  1. A stall paid a non-refundable £90 permit fee. It owns a tool it could sell for £50 and would need £20 of new supplies to continue. Which amount is sunk?

    • The £50 available from selling the tool
    • The £90 already paid for the permit
    • The £20 needed for the next supplies
  2. Which plan gives a clear result and date for reviewing whether to stop?

    • Review after six weeks if paid orders are below 12
    • Review sometime later if the project feels difficult
    • Review after more spending if success still feels close
  3. A project that closes cannot leave useful records or skills.

    Circle one:   True   False

  4. During six stall hours, you could instead take a £45 shift or earn £30 tutoring. You can do only one, both are available, and you value their other benefits equally. What is the money opportunity cost of choosing the stall?

    • £75 from adding both alternative jobs together
    • £45 from the best available alternative job
    • £30 from the lower-paying alternative job
  5. A founder has spent £600 that cannot be recovered. Continuing next week would bring £80 revenue and £120 new costs; stopping adds no cost. No other benefits or costs differ. Which choice leaves more money?

    • Continue because it recovers all £600 already spent
    • Continue because £80 revenue covers £120 new costs
    • Stop because it avoids a further £40 loss
  6. For one month, operating brings £500 revenue and £300 avoidable costs. Another £260 is payable whether you operate or pause. No other costs, benefits or alternatives differ. Which option loses less?

    • Operate: lose £60 rather than £260
    • Pause: lose nothing because sales stop
    • Either: lose £260 under both choices
  7. A venture is closing. Which plan keeps useful learning and handles responsibilities?

    • Keep the test records and plan payments owed
    • Keep the tools but ignore every unpaid bill
    • Delete all records and promise automatic success next time
  8. A founder plans to stop if fewer than 20 paid orders arrive in four weeks. At the review there are 8 orders and no new evidence for changing the plan. Which action follows the rule?

    • Extend the deadline because earlier effort deserves repayment
    • Spend more on the same plan to justify the earlier expense
    • Stop the venture and plan how to meet its remaining obligations
LightMySky · lightmysky.comW1-mt_Xh61d76aET-s1

Answer key

For grown-ups. Fold this page away before handing over the rest.

Decide your stop rule before you start W1-mt_Xh61d76aET-s1

  1. The £90 already paid for the permit · The £90 permit fee cannot be recovered. Tool resale money and new supply spending can still change with the decision.
  2. Review after six weeks if paid orders are below 12 · The plan specifies both a six-week review date and a measurable threshold of fewer than 12 paid orders.
  3. False · Records and skills can remain useful after the project ends.
  4. £45 from the best available alternative job · The best available alternative pays £45. You cannot do both jobs, so their values are not added.
  5. Stop because it avoids a further £40 loss · Continuing adds £80 minus £120, a £40 loss. The unrecoverable £600 stays spent under either choice.
  6. Operate: lose £60 rather than £260 · Operating loses £60 because £500 minus £300 minus £260 is negative £60. Pausing still costs £260.
  7. Keep the test records and plan payments owed · Records can inform later decisions, and payments owed still need a plan. Closing does not erase obligations or guarantee later success.
  8. Stop the venture and plan how to meet its remaining obligations · Eight orders is below the 20-order threshold at the planned review. No new evidence supports changing the plan.
Worksheet · LightMySky