Question 1

What is a business incubator?

Accepted Answer

A business incubator provides new busine

Question 2

Which of the following is a key contributing factor to the success of a small business?

Accepted Answer

A)  Hard work, drive, and dedication 
B)  Overcapitalization 
C)  Strong control systems 
D)  Creativity 
E)  Insufficient capital 
A)  Hard work, drive, and dedication 
B)  Overcapitalization 
C)  Strong control systems 
D)  Creativity 
E)  Insufficient capital

Question 3

Gloria wants to turn her sole proprietorship into a business corporation. Among the things that she must consider are

Accepted Answer

A)  sole proprietorships must be made into partnerships before they can be made into corporations. 
B)  there is a threat of a hostile takeover if she has a private corporation. 
C)  double taxation that occurs with corporations. 
D)  the cost of dissolving her sole proprietorship will be high. 
E)  she has to decide whether or not she will issue shares when the company becomes a corporation. 
A)  sole proprietorships must be made into partnerships before they can be made into corporations. 
B)  there is a threat of a hostile takeover if she has a private corporation. 
C)  double taxation that occurs with corporations. 
D)  the cost of dissolving her sole proprietorship will be high. 
E)  she has to decide whether or not she will issue shares when the company becomes a corporation.

Question 4

Short and Shearer are two friends who want to begin an entrepreneurship as business partners. They need to decide whether to start up a new business or to buy an existing business. To do this, Short and Shearer need to weigh the pros and cons of each in order to see what the best strategy for them would be. In order to help ensure success for their new business, which of the following questions would be least helpful for Short and Shearer to periodically ask themselves?

Accepted Answer

A)  How well does our firm's operation align with the business plan? 
B)  How many employees do we have? 
C)  How are we handling our finances? 
D)  How are our employees performing? 
E)  How much debt can we afford to carry? 
A)  How well does our firm's operation align with the business plan? 
B)  How many employees do we have? 
C)  How are we handling our finances? 
D)  How are our employees performing? 
E)  How much debt can we afford to carry?

Question 5

Discuss the advantages and disadvantages of buying a franchise to start a new business.

Accepted Answer

Advantages:
- Not building step by step

Question 6

A new business typically adopts one of four main organizational forms. They are

Accepted Answer

A)  franchise, sole proprietorship, partnership, or corporation. 
B)  franchise, partnership, corporation, or co-operative. 
C)  sole proprietorship, franchise, corporation, or co-operative. 
D)  sole proprietorship, partnership, corporation, or co-operative. 
E)  debt, equity, venture capital, or gifted. 
A)  franchise, sole proprietorship, partnership, or corporation. 
B)  franchise, partnership, corporation, or co-operative. 
C)  sole proprietorship, franchise, corporation, or co-operative. 
D)  sole proprietorship, partnership, corporation, or co-operative. 
E)  debt, equity, venture capital, or gifted.

Question 7

Of every 100 small businesses that begin operation, only 85 will still be operating after just one year.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is the main disadvantage of a co-operative?

Accepted Answer

A)  High prices 
B)  Each member only gets one vote 
C)  High tax rates 
D)  Low surplus distribution rates 
E)  Difficult to attract equity investment 
A)  High prices 
B)  Each member only gets one vote 
C)  High tax rates 
D)  Low surplus distribution rates 
E)  Difficult to attract equity investment

Question 9

Which of the following is considered an advantage for both the franchisee and the franchisor?

Accepted Answer

A)  Guaranteed success 
B)  Economies of scale in buying 
C)  Promotion savings 
D)  Recognition 
E)  Management assistance 
A)  Guaranteed success 
B)  Economies of scale in buying 
C)  Promotion savings 
D)  Recognition 
E)  Management assistance

Question 10

Which of the following is a private corporation?

Accepted Answer

A)  General Motors Canada 
B)  Suncor Energy 
C)  Cirque du Soleil 
D)  Manulife Financial Corp. 
E)  Bank of Nova Scotia 
A)  General Motors Canada 
B)  Suncor Energy 
C)  Cirque du Soleil 
D)  Manulife Financial Corp. 
E)  Bank of Nova Scotia

Question 11

Shareholders pay income taxes on the dividends they receive from the corporation, but the dividends are tax deductible for corporations.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements about partnerships is false?

Accepted Answer

A)  A partner cannot sell their interest without the other partners' consent. 
B)  The partnership terminates upon the death of a partner. 
C)  A partner cannot retire without the other partners' consent. 
D)  General partnerships are limited to ten partners. 
E)  It is easier to borrow money than a sole proprietorship. 
A)  A partner cannot sell their interest without the other partners' consent. 
B)  The partnership terminates upon the death of a partner. 
C)  A partner cannot retire without the other partners' consent. 
D)  General partnerships are limited to ten partners. 
E)  It is easier to borrow money than a sole proprietorship.

Question 13

Manufacturing businesses are the largest and fastest growing segment of small business enterprise.

Accepted Answer

A) True 
 B)False

Question 14

What is a general partnership?

Accepted Answer

A general partnership is one in which al

Question 15

Which of the following is not typical for a sole proprietorship?

Accepted Answer

A)  Limited liability 
B)  Losing money at start-up 
C)  Lack of continuity 
D)  Easy to dissolve 
E)  Hard to borrow money 
A)  Limited liability 
B)  Losing money at start-up 
C)  Lack of continuity 
D)  Easy to dissolve 
E)  Hard to borrow money

Question 16

Due to his hard work and notable contributions as an employee of KB Electronics, Nori has just been elected to the board of directors of the company. He will now be expected to fulfill his obligations as both an employee and director. Nori is a(n)

Accepted Answer

A)  outside director. 
B)  special representative. 
C)  regular seat holder. 
D)  inside director. 
E)  corporate official. 
A)  outside director. 
B)  special representative. 
C)  regular seat holder. 
D)  inside director. 
E)  corporate official.

Question 17

For the first time, Liz has decided to sell shares of her company to the public in order to raise some capital to build a new factory. Liz is launching a(n)

Accepted Answer

A)  initial public offering. 
B)  an extended corporation. 
C)  blended corporation. 
D)  private corporation. 
E)  income tax trust. 
A)  initial public offering. 
B)  an extended corporation. 
C)  blended corporation. 
D)  private corporation. 
E)  income tax trust.

Question 18

IPOs are particularly attractive to companies during stock market declines because investors can buy the shares of stock for a low price, and this makes it more likely that the company will be able to sell a lot of shares.

Accepted Answer

A) True 
 B)False

Question 19

Olivia has found a viable business, a small furniture store, she is interested in purchasing. She has learned that the store is supplied by reliable vendors and has a steady stream of local and online buyers. What should be Olivia's next step at this point?

Accepted Answer

A)  Analyze the furniture store's past financial statements 
B)  Start negotiating a purchase price with the current owner 
C)  Approach a banking institution about financing her purchase 
D)  Consult a marketing agency about ways to reach more customers 
E)  Search for vendors that can provide similar products at lower costs 
A)  Analyze the furniture store's past financial statements 
B)  Start negotiating a purchase price with the current owner 
C)  Approach a banking institution about financing her purchase 
D)  Consult a marketing agency about ways to reach more customers 
E)  Search for vendors that can provide similar products at lower costs

Question 20

Judy is a graduate from a denturist program. Normally, graduates start up their own business, much like dentists and doctors. She has the choice of starting on her own or buying an existing practice. What is an advantage for her of starting a new business from scratch?

Accepted Answer

A)  No problems as a result of the prior owner's errors 
B)  Odds are better to succeed 
C)  Relationship with suppliers already established 
D)  Needs and desires of customers known 
E)  The risks are lower than if she were to buy an existing practice 
A)  No problems as a result of the prior owner's errors 
B)  Odds are better to succeed 
C)  Relationship with suppliers already established 
D)  Needs and desires of customers known 
E)  The risks are lower than if she were to buy an existing practice

What is a business incubator?

Which of the following is a key contributing factor to the success of a small business?

Gloria wants to turn her sole proprietorship into a business corporation. Among the things that she must consider are

Discuss the advantages and disadvantages of buying a franchise to start a new business.

A new business typically adopts one of four main organizational forms. They are

Of every 100 small businesses that begin operation, only 85 will still be operating after just one year.

Which of the following is the main disadvantage of a co-operative?

Which of the following is considered an advantage for both the franchisee and the franchisor?

Which of the following is a private corporation?

Shareholders pay income taxes on the dividends they receive from the corporation, but the dividends are tax deductible for corporations.

Which of the following statements about partnerships is false?

Manufacturing businesses are the largest and fastest growing segment of small business enterprise.

What is a general partnership?

Which of the following is not typical for a sole proprietorship?

Due to his hard work and notable contributions as an employee of KB Electronics, Nori has just been elected to the board of directors of the company. He will now be expected to fulfill his obligations as both an employee and director. Nori is a(n)

For the first time, Liz has decided to sell shares of her company to the public in order to raise some capital to build a new factory. Liz is launching a(n)

IPOs are particularly attractive to companies during stock market declines because investors can buy the shares of stock for a low price, and this makes it more likely that the company will be able to sell a lot of shares.

Olivia has found a viable business, a small furniture store, she is interested in purchasing. She has learned that the store is supplied by reliable vendors and has a steady stream of local and online buyers. What should be Olivia's next step at this point?

Judy is a graduate from a denturist program. Normally, graduates start up their own business, much like dentists and doctors. She has the choice of starting on her own or buying an existing practice. What is an advantage for her of starting a new business from scratch?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

Exam 4: Entrepreneurship, Small Business, and New Venture Creation

What is a business incubator?

Which of the following is a key contributing factor to the success of a small business?

Gloria wants to turn her sole proprietorship into a business corporation. Among the things that she must consider are

Discuss the advantages and disadvantages of buying a franchise to start a new business.

A new business typically adopts one of four main organizational forms. They are

Of every 100 small businesses that begin operation, only 85 will still be operating after just one year.

Which of the following is the main disadvantage of a co-operative?

Which of the following is considered an advantage for both the franchisee and the franchisor?

Which of the following is a private corporation?

Shareholders pay income taxes on the dividends they receive from the corporation, but the dividends are tax deductible for corporations.

Which of the following statements about partnerships is false?

Manufacturing businesses are the largest and fastest growing segment of small business enterprise.

What is a general partnership?

Which of the following is not typical for a sole proprietorship?

Due to his hard work and notable contributions as an employee of KB Electronics, Nori has just been elected to the board of directors of the company. He will now be expected to fulfill his obligations as both an employee and director. Nori is a(n)

For the first time, Liz has decided to sell shares of her company to the public in order to raise some capital to build a new factory. Liz is launching a(n)

IPOs are particularly attractive to companies during stock market declines because investors can buy the shares of stock for a low price, and this makes it more likely that the company will be able to sell a lot of shares.

Olivia has found a viable business, a small furniture store, she is interested in purchasing. She has learned that the store is supplied by reliable vendors and has a steady stream of local and online buyers. What should be Olivia's next step at this point?

Judy is a graduate from a denturist program. Normally, graduates start up their own business, much like dentists and doctors. She has the choice of starting on her own or buying an existing practice. What is an advantage for her of starting a new business from scratch?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters