Question 1

Describe the criteria used to screen an entrepreneur's idea.

Accepted Answer

There are five criteria: (1) Does this i

Question 2

How is a co-operative different from a corporation?

Accepted Answer

A)  A co-operative has no shareholders. 
B)  A co-operate is smaller than a corporation. 
C)  In a co-operative, each person has only one vote no matter how many shares they own. 
D)  Double taxation affects co-operatives more negatively than corporations. 
E)  A co-operative is not incorporated. 
A)  A co-operative has no shareholders. 
B)  A co-operate is smaller than a corporation. 
C)  In a co-operative, each person has only one vote no matter how many shares they own. 
D)  Double taxation affects co-operatives more negatively than corporations. 
E)  A co-operative is not incorporated.

Question 3

List the major parts of a good business plan.

Accepted Answer

- Company description
- Produc

Question 4

An income trust structure allows a corporation to avoid paying tax if it distributes all or most of its earnings to investors.

Accepted Answer

A) True 
 B)False

Question 5

The most important reason that women give for starting their own business is to gain control of their schedules.

Accepted Answer

A) True 
 B)False

Question 6

Sam and Nina want to start a dry-cleaning service and need to decide on the best form of business ownership, based on their respective abilities and the kind of business they want to run. They could either jointly own the business as a partnership, or one of them could own it as a sole proprietorship. Which of the following, if true, would strengthen the case for Sam and Nina owning the business in a partnership?

Accepted Answer

A)  Sam and Nina have very different personalities. 
B)  Sam and Nina have the same skill sets. 
C)  Sam and Nina are both motivated and energetic. 
D)  Nina has good leadership qualities. 
E)  Sam has a strong marketing background. 
A)  Sam and Nina have very different personalities. 
B)  Sam and Nina have the same skill sets. 
C)  Sam and Nina are both motivated and energetic. 
D)  Nina has good leadership qualities. 
E)  Sam has a strong marketing background.

Question 7

What is the most important advantage of general partnerships?

Accepted Answer

A)  The unlimited liability of the partnership 
B)  The ability to grow with the addition of new talent and money 
C)  The ease of implementing an effective control system 
D)  The increased role of luck 
E)  The need for minority partners 
A)  The unlimited liability of the partnership 
B)  The ability to grow with the addition of new talent and money 
C)  The ease of implementing an effective control system 
D)  The increased role of luck 
E)  The need for minority partners

Question 8

How are corporations managed?

Accepted Answer

The governing body of a corporation is i

Question 9

What is the fundamental difference between a sole proprietorship and a corporation?

Accepted Answer

A)  A corporation is larger than a sole proprietorship. 
B)  A corporation is a legal entity that is separate from its owners, while in a sole proprietorship, there is no such distinction. 
C)  A sole proprietor has unlimited liability, while investors in a corporation have limited liability. 
D)  A corporation is more bureaucratic than a sole proprietorship. 
E)  There isn't really a fundamental difference between a sole proprietorship and a corporation. 
A)  A corporation is larger than a sole proprietorship. 
B)  A corporation is a legal entity that is separate from its owners, while in a sole proprietorship, there is no such distinction. 
C)  A sole proprietor has unlimited liability, while investors in a corporation have limited liability. 
D)  A corporation is more bureaucratic than a sole proprietorship. 
E)  There isn't really a fundamental difference between a sole proprietorship and a corporation.

Question 10

Survival rates for new ventures are greatly improved by getting involved with an incubator.

Accepted Answer

A) True 
 B)False

Question 11

Private investors, also known as angels, provide most of the debt financing for new businesses.

Accepted Answer

A) True 
 B)False

Question 12

The features of a sole proprietorship include all the following except

Accepted Answer

A)  a lot of government paperwork. 
B)  simple to form. 
C)  easy to dissolve. 
D)  limited resources. 
E)  unlimited liabilities. 
A)  a lot of government paperwork. 
B)  simple to form. 
C)  easy to dissolve. 
D)  limited resources. 
E)  unlimited liabilities.

Question 13

Co-operatives are allowed to deduct patronage refunds to members out of before-tax income.

Accepted Answer

A) True 
 B)False

Question 14

Why is there such a difference between the failure rates of small businesses in general and franchising operations in particular?

Accepted Answer

Franchises fail less because t

Question 15

Roger has made a list of what he considers to be advantages of buying a franchise. You tell him that one item on his list is not an advantage. Which one is it?

Accepted Answer

A)  Improved chances of success 
B)  Access to big business management skills 
C)  Don't have to build a business step by step 
D)  Incentive of owning your own business 
E)  Low start-up costs 
A)  Improved chances of success 
B)  Access to big business management skills 
C)  Don't have to build a business step by step 
D)  Incentive of owning your own business 
E)  Low start-up costs

Question 16

Which of the following is correct with regard to small business?

Accepted Answer

A)  Various measures might be used to define a small business, including the number of people the business employs, the company's sales revenue, the size of the investment required, or the type of ownership structure the business has. 
B)  Since the Business Register tracks businesses and the Labour Force Survey tracks individuals, these sources of information are not useful in defining the term "small business." 
C)  To be included in the Business Register, a business must have at least five paid employees. 
D)  In the Business Register, a goods-producing company is considered small if it has fewer than 500 employees, while a service-producing business is considered small if it has fewer than 100 employees. 
E)  All of these are correct. 
A)  Various measures might be used to define a small business, including the number of people the business employs, the company's sales revenue, the size of the investment required, or the type of ownership structure the business has. 
B)  Since the Business Register tracks businesses and the Labour Force Survey tracks individuals, these sources of information are not useful in defining the term "small business." 
C)  To be included in the Business Register, a business must have at least five paid employees. 
D)  In the Business Register, a goods-producing company is considered small if it has fewer than 500 employees, while a service-producing business is considered small if it has fewer than 100 employees. 
E)  All of these are correct.

Question 17

What characteristics do entrepreneurs typically exhibit? How important are these characteristics?

Accepted Answer

Research shows that entrepreneurial char

Question 18

The Heritage Foundation's "index of economic freedom" measures

Accepted Answer

A)  how well command economies are performing compared to market economies. 
B)  the extent to which entrepreneurs have freedom to pursue new business opportunities. 
C)  how well entrepreneurs are performing in advanced industrialized countries compared to developing economies. 
D)  how much profit entrepreneurs are making in command economies compared to market economies. 
E)  the economic freedom entrepreneurs have in various countries, using the United States as the comparison point. 
A)  how well command economies are performing compared to market economies. 
B)  the extent to which entrepreneurs have freedom to pursue new business opportunities. 
C)  how well entrepreneurs are performing in advanced industrialized countries compared to developing economies. 
D)  how much profit entrepreneurs are making in command economies compared to market economies. 
E)  the economic freedom entrepreneurs have in various countries, using the United States as the comparison point.

Question 19

What are the most common sources of equity financing?

Accepted Answer

The most common sources of equity financ

Question 20

An example of a debt source of funds is ________ and an example of an equity source of funds is ________.

Accepted Answer

A)  family and friends; venture capitalists 
B)  private lenders; family and friends 
C)  private lenders; trade credit 
D)  venture capitalists; private lenders 
E)  family and friends; private lenders 
A)  family and friends; venture capitalists 
B)  private lenders; family and friends 
C)  private lenders; trade credit 
D)  venture capitalists; private lenders 
E)  family and friends; private lenders

Describe the criteria used to screen an entrepreneur's idea.

How is a co-operative different from a corporation?

List the major parts of a good business plan.

An income trust structure allows a corporation to avoid paying tax if it distributes all or most of its earnings to investors.

The most important reason that women give for starting their own business is to gain control of their schedules.

What is the most important advantage of general partnerships?

How are corporations managed?

What is the fundamental difference between a sole proprietorship and a corporation?

Survival rates for new ventures are greatly improved by getting involved with an incubator.

Private investors, also known as angels, provide most of the debt financing for new businesses.

The features of a sole proprietorship include all the following except

Co-operatives are allowed to deduct patronage refunds to members out of before-tax income.

Why is there such a difference between the failure rates of small businesses in general and franchising operations in particular?

Roger has made a list of what he considers to be advantages of buying a franchise. You tell him that one item on his list is not an advantage. Which one is it?

Which of the following is correct with regard to small business?

What characteristics do entrepreneurs typically exhibit? How important are these characteristics?

The Heritage Foundation's "index of economic freedom" measures

What are the most common sources of equity financing?

An example of a debt source of funds is and an example of an equity source of funds is .

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

Describe the criteria used to screen an entrepreneur's idea.

How is a co-operative different from a corporation?

List the major parts of a good business plan.

An income trust structure allows a corporation to avoid paying tax if it distributes all or most of its earnings to investors.

The most important reason that women give for starting their own business is to gain control of their schedules.

What is the most important advantage of general partnerships?

How are corporations managed?

What is the fundamental difference between a sole proprietorship and a corporation?

Survival rates for new ventures are greatly improved by getting involved with an incubator.

Private investors, also known as angels, provide most of the debt financing for new businesses.

The features of a sole proprietorship include all the following except

Co-operatives are allowed to deduct patronage refunds to members out of before-tax income.

Why is there such a difference between the failure rates of small businesses in general and franchising operations in particular?

Roger has made a list of what he considers to be advantages of buying a franchise. You tell him that one item on his list is not an advantage. Which one is it?

Which of the following is correct with regard to small business?

What characteristics do entrepreneurs typically exhibit? How important are these characteristics?

The Heritage Foundation's "index of economic freedom" measures

What are the most common sources of equity financing?

An example of a debt source of funds is ________ and an example of an equity source of funds is ________.

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

An example of a debt source of funds is and an example of an equity source of funds is .