Question 1

Assets that a borrower uses to secure a loan or other credit are referred to as

Accepted Answer

A)  financed assets. 
B)  tangible assets. 
C)  fixed assets. 
D)  collateral. 
E)  assignments. 
A)  financed assets. 
B)  tangible assets. 
C)  fixed assets. 
D)  collateral. 
E)  assignments.

Question 2

Company employees are not allowed to be members of the board of directors.

Accepted Answer

A) True 
 B)False

Question 3

An entrepreneur, Christina Rossini, is planning to open a small chain of 4 to 6 pizza stores under the brand name "Redenda Pizza." The name comes from combining the first names of the entrepreneur's grandparents. Christina wants to have a competitive advantage by offering innovative and distinct specialty pizzas and by offering the freshest ingredients. However, she is concerned that without proper planning, her venture will not be successful. Christina is trying to identify potential problems in order to avoid them or at least be better positioned to react if they cannot be avoided. In doing so, Christina should account for all of the following possibilities except

Accepted Answer

A)  the possibility that years in the future scientists may give a new communicable disease a name that sounds similar to "Redenda." 
B)  the possibility that a significant number of her potential customers could be allergic to one or more of her ingredients. 
C)  the possibility that seasonal variations in the availability of ingredients could affect the price of those ingredients. 
D)  the possibility that advertising "fresh" ingredients may prevent Redenda Pizza from using less-expensive ingredients. 
E)  the possibility that many customers are reluctant to try new pizza recipes. 
A)  the possibility that years in the future scientists may give a new communicable disease a name that sounds similar to "Redenda." 
B)  the possibility that a significant number of her potential customers could be allergic to one or more of her ingredients. 
C)  the possibility that seasonal variations in the availability of ingredients could affect the price of those ingredients. 
D)  the possibility that advertising "fresh" ingredients may prevent Redenda Pizza from using less-expensive ingredients. 
E)  the possibility that many customers are reluctant to try new pizza recipes.

Question 4

There are two basic types of partners: ________ and ________.

Accepted Answer

A)  dormant; active 
B)  key; secondary 
C)  secret; open 
D)  general; limited 
E)  primary; secondary 
A)  dormant; active 
B)  key; secondary 
C)  secret; open 
D)  general; limited 
E)  primary; secondary

Question 5

The part of the economy that is made up of companies and organizations not owned or controlled by the government is called

Accepted Answer

A)  crown corporations. 
B)  split sector. 
C)  legislated corporations. 
D)  public sector. 
E)  the private sector. 
A)  crown corporations. 
B)  split sector. 
C)  legislated corporations. 
D)  public sector. 
E)  the private sector.

Question 6

The person or people responsible for the firm's overall performance is/are

Accepted Answer

A)  the directors. 
B)  the CEO. 
C)  the COO. 
D)  the CFO. 
E)  all employees. 
A)  the directors. 
B)  the CEO. 
C)  the COO. 
D)  the CFO. 
E)  all employees.

Question 7

What is the difference between debt and equity financing?

Accepted Answer

Debt financing involves borrowing funds.

Question 8

Should government be involved in giving assistance to small businesses?

Accepted Answer

Answers will vary. An example of a "Yes"

Question 9

Entrepreneurship is an individual's willingness to take advantage of business opportunities and to assume the risks of establishing and operating a business.

Accepted Answer

A) True 
 B)False

Question 10

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 weaken the case for Nina running the business as a sole proprietorship?

Accepted Answer

A)  Nina has a degree in accounting. 
B)  Nina's parents also ran a dry-cleaning business. 
C)  Nina had the initial idea to start the new business. 
D)  Sam is anxious to take on a lead role in the business. 
E)  Sam does not have any previous dry-cleaning experience. 
A)  Nina has a degree in accounting. 
B)  Nina's parents also ran a dry-cleaning business. 
C)  Nina had the initial idea to start the new business. 
D)  Sam is anxious to take on a lead role in the business. 
E)  Sam does not have any previous dry-cleaning experience.

Question 11

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

Accepted Answer

A)  Sole proprietorship 
B)  Corporation 
C)  Limited partnership 
D)  Co-operative 
E)  General partnership 
A)  Sole proprietorship 
B)  Corporation 
C)  Limited partnership 
D)  Co-operative 
E)  General partnership

Question 12

When screening ideas, an entrepreneur would ask all of the following questions except

Accepted Answer

A)  is the idea marketable? 
B)  does this idea have a high entrance cost? 
C)  does this idea create or add value for the customer? 
D)  does the idea provide a sustainable competitive advantage? 
E)  is the idea financially viable? 
A)  is the idea marketable? 
B)  does this idea have a high entrance cost? 
C)  does this idea create or add value for the customer? 
D)  does the idea provide a sustainable competitive advantage? 
E)  is the idea financially viable?

Question 13

Which of the following is correct with regard to collateral?

Accepted Answer

A)  It refers to business (but not personal) assets that a borrower uses to secure a loan or other credit. 
B)  It consists of tangible assets like buildings as well as intangible assets like goodwill. 
C)  Collateral can be seized by the lender if the loan is not repaid according to specified terms. 
D)  It refers to personal (but not business) assets that a borrower uses to secure a loan or other credit. 
E)  Banks are most impressed with debt investment. 
A)  It refers to business (but not personal) assets that a borrower uses to secure a loan or other credit. 
B)  It consists of tangible assets like buildings as well as intangible assets like goodwill. 
C)  Collateral can be seized by the lender if the loan is not repaid according to specified terms. 
D)  It refers to personal (but not business) assets that a borrower uses to secure a loan or other credit. 
E)  Banks are most impressed with debt investment.

Question 14

What does it mean to say that shareholders in a corporation have limited liability?

Accepted Answer

The amount of money that share

Question 15

A financial forecast includes all of the following items except

Accepted Answer

A)  a cash budget. 
B)  an estimate of start-up costs. 
C)  an income statement. 
D)  a listing of potential customers. 
E)  a balance sheet. 
A)  a cash budget. 
B)  an estimate of start-up costs. 
C)  an income statement. 
D)  a listing of potential customers. 
E)  a balance sheet.

Question 16

A ________ typically includes a company description, product description, marketing analysis and plan, operating plan, financial plan, and other supporting information.

Accepted Answer

A)  bank loan application 
B)  business plan 
C)  tax application 
D)  partnership agreement 
E)  grant application 
A)  bank loan application 
B)  business plan 
C)  tax application 
D)  partnership agreement 
E)  grant application

Question 17

The benefits of franchising the franchiser enjoys include all of the following except

Accepted Answer

A)  more revenue. 
B)  more financing. 
C)  more involvement in the details of local operations. 
D)  advertising money is spent more efficiently. 
E)  rapid growth. 
A)  more revenue. 
B)  more financing. 
C)  more involvement in the details of local operations. 
D)  advertising money is spent more efficiently. 
E)  rapid growth.

Question 18

Disadvantages of the general partnership form of business organization include

Accepted Answer

A)  limited liability. 
B)  ability to provide dividends to shareholders. 
C)  lack of continuity. 
D)  simplicity of establishment. 
E)  difficult to organize. 
A)  limited liability. 
B)  ability to provide dividends to shareholders. 
C)  lack of continuity. 
D)  simplicity of establishment. 
E)  difficult to organize.

Question 19

What are the advantages and disadvantages of the corporate form of organization?

Accepted Answer

A corporation is a business that is lega

Question 20

An entrepreneur, Christina Rossini, is planning to open a small chain of 4 to 6 pizza stores under the brand name "Redenda Pizza." The name comes from combining the first names of the entrepreneur's grandparents. Christina wants to have a competitive advantage by offering innovative and distinct specialty pizzas and by offering the freshest ingredients. However, she is concerned that without proper planning, her venture will not be successful. Which of the following, if true, would strengthen the case that Christina has a good opportunity in opening a new pizza restaurant?

Accepted Answer

A)  There are many existing pizza restaurants in Christina's city. 
B)  The pizza business in Christina's city has remained largely unchanged for many years. 
C)  Restaurant consumers in Christina's city mostly frequent Mexican restaurants. 
D)  Pizza restaurants require several experienced employees to be successful. 
E)  Pizza restaurants can be found in almost any town in the United States. 
A)  There are many existing pizza restaurants in Christina's city. 
B)  The pizza business in Christina's city has remained largely unchanged for many years. 
C)  Restaurant consumers in Christina's city mostly frequent Mexican restaurants. 
D)  Pizza restaurants require several experienced employees to be successful. 
E)  Pizza restaurants can be found in almost any town in the United States.

Assets that a borrower uses to secure a loan or other credit are referred to as

Company employees are not allowed to be members of the board of directors.

There are two basic types of partners: and .

The part of the economy that is made up of companies and organizations not owned or controlled by the government is called

The person or people responsible for the firm's overall performance is/are

What is the difference between debt and equity financing?

Should government be involved in giving assistance to small businesses?

Entrepreneurship is an individual's willingness to take advantage of business opportunities and to assume the risks of establishing and operating a business.

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

When screening ideas, an entrepreneur would ask all of the following questions except

Which of the following is correct with regard to collateral?

What does it mean to say that shareholders in a corporation have limited liability?

A financial forecast includes all of the following items except

A ________ typically includes a company description, product description, marketing analysis and plan, operating plan, financial plan, and other supporting information.

The benefits of franchising the franchiser enjoys include all of the following except

Disadvantages of the general partnership form of business organization include

What are the advantages and disadvantages of the corporate form of organization?

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

Assets that a borrower uses to secure a loan or other credit are referred to as

Company employees are not allowed to be members of the board of directors.

There are two basic types of partners: ________ and ________.

The part of the economy that is made up of companies and organizations not owned or controlled by the government is called

The person or people responsible for the firm's overall performance is/are

What is the difference between debt and equity financing?

Should government be involved in giving assistance to small businesses?

Entrepreneurship is an individual's willingness to take advantage of business opportunities and to assume the risks of establishing and operating a business.

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

When screening ideas, an entrepreneur would ask all of the following questions except

Which of the following is correct with regard to collateral?

What does it mean to say that shareholders in a corporation have limited liability?

A financial forecast includes all of the following items except

A ________ typically includes a company description, product description, marketing analysis and plan, operating plan, financial plan, and other supporting information.

The benefits of franchising the franchiser enjoys include all of the following except

Disadvantages of the general partnership form of business organization include

What are the advantages and disadvantages of the corporate form of organization?

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

There are two basic types of partners: and .