Question 1

Why is unlimited liability a significant disadvantage to both the sole proprietorship and general partnership forms of organization?

Accepted Answer

- Sole proprietors are in a high risk si

Question 2

The size of a partnership is

Accepted Answer

A)  limited to a maximum of $100 million in annual sales. 
B)  unlimited. 
C)  limited to a maximum of 100 partners. 
D)  limited to a maximum of 1000 employees. 
E)  limited to a maximum of $10 million in annual sales. 
A)  limited to a maximum of $100 million in annual sales. 
B)  unlimited. 
C)  limited to a maximum of 100 partners. 
D)  limited to a maximum of 1000 employees. 
E)  limited to a maximum of $10 million in annual sales.

Question 3

According to Industry Canada there are about ________ people who are "self- employed" and about ________ "business establishments."

Accepted Answer

A)  1.2 million; 1.2 million 
B)  5 million; 500 000 
C)  2.7 million; 2.2 million 
D)  725 000; 500 000 
E)  225 000; 225 000 
A)  1.2 million; 1.2 million 
B)  5 million; 500 000 
C)  2.7 million; 2.2 million 
D)  725 000; 500 000 
E)  225 000; 225 000

Question 4

The ________ fit involves determining if the resources needed to capitalize on the opportunity can be acquired.

Accepted Answer

A)  resource-entrepreneur 
B)  personal-entrepreneur 
C)  entrepreneur-opportunity 
D)  opportunity-resource 
E)  entrepreneur-resource 
A)  resource-entrepreneur 
B)  personal-entrepreneur 
C)  entrepreneur-opportunity 
D)  opportunity-resource 
E)  entrepreneur-resource

Question 5

What is the most important factor contributing to small business failure?

Accepted Answer

The most important f

Question 6

A business is normally at its riskiest point during the ________ phase.

Accepted Answer

A)  preliminary 
B)  growth 
C)  start-up 
D)  maturity 
E)  conception 
A)  preliminary 
B)  growth 
C)  start-up 
D)  maturity 
E)  conception

Question 7

Describe the advantages and disadvantages of operating a business as a partnership.

Accepted Answer

Advantages of the partnership include th

Question 8

A disadvantage of a franchise is the initial franchise fee.

Accepted Answer

A) True 
 B)False

Question 9

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. Which of the following, if true, would strengthen the case for Short and Shearer buying an existing business?

Accepted Answer

A)  Short and Shearer have a lot of ideas as to the kind of business they would like to own. 
B)  An existing business would have an existing customer base that Short and Shearer would inherit. 
C)  An existing business for sale might have difficulties that Short and Shearer would inherit. 
D)  Short and Shearer greatly value independence. 
E)  Existing small businesses are usually carrying debts. 
A)  Short and Shearer have a lot of ideas as to the kind of business they would like to own. 
B)  An existing business would have an existing customer base that Short and Shearer would inherit. 
C)  An existing business for sale might have difficulties that Short and Shearer would inherit. 
D)  Short and Shearer greatly value independence. 
E)  Existing small businesses are usually carrying debts.

Question 10

To start up a new business by operating under a license issued by a parent company to local entrepreneurs who own and manage the business is known as

Accepted Answer

A)  a small business. 
B)  a macroenterprise. 
C)  an enterprise. 
D)  a microenterprise. 
E)  a franchise. 
A)  a small business. 
B)  a macroenterprise. 
C)  an enterprise. 
D)  a microenterprise. 
E)  a franchise.

Question 11

A limited partnership attempts to

Accepted Answer

A)  avoid the problem of unlimited liability for the owners. 
B)  limit the number of partners who may purchase a share of ownership. 
C)  provide for continuity of operation upon the departure of one of the partners. 
D)  limit the number of partners who may vote at board meetings. 
E)  limit the geographical area of operation for a business firm. 
A)  avoid the problem of unlimited liability for the owners. 
B)  limit the number of partners who may purchase a share of ownership. 
C)  provide for continuity of operation upon the departure of one of the partners. 
D)  limit the number of partners who may vote at board meetings. 
E)  limit the geographical area of operation for a business firm.

Question 12

Bill is starting up a new business. In order to raise the capital needed for the business, Bill has sold shares of his company to a few close relatives. This type of structure is known as a

Accepted Answer

A)  sole proprietorship. 
B)  private corporation. 
C)  macroenterprise. 
D)  public enterprise. 
E)  public corporation. 
A)  sole proprietorship. 
B)  private corporation. 
C)  macroenterprise. 
D)  public enterprise. 
E)  public corporation.

Question 13

Which of the following is the most significant disadvantage of starting a business from scratch?

Accepted Answer

A)  Having few employees 
B)  Inability to franchise 
C)  Having competition 
D)  Coming up with new ideas 
E)  The risk of failure 
A)  Having few employees 
B)  Inability to franchise 
C)  Having competition 
D)  Coming up with new ideas 
E)  The risk of failure

Question 14

An outside director is

Accepted Answer

A)  a person who is not an employee of the company. 
B)  a person from the employee group outside the upper level ranks. 
C)  a person selected by the CEO. 
D)  a person who is a high ranking company official. 
E)  a person from the audit committee. 
A)  a person who is not an employee of the company. 
B)  a person from the employee group outside the upper level ranks. 
C)  a person selected by the CEO. 
D)  a person who is a high ranking company official. 
E)  a person from the audit committee.

Question 15

Women lead only a small percentage of small- and medium-sized firms that export goods and services.

Accepted Answer

A) True 
 B)False

Question 16

Describe the business plan and the start-up decisions made by small businesses.

Accepted Answer

The starting point for virtually every n

Question 17

What percentage of Canada's GDP is contributed by small businesses?

Accepted Answer

A)  7 percent 
B)  13 percent 
C)  19 percent 
D)  30 percent 
E)  41 percent 
A)  7 percent 
B)  13 percent 
C)  19 percent 
D)  30 percent 
E)  41 percent

Question 18

Ted is about to take over a family business. The issues of which he should be aware include all of the following except

Accepted Answer

A)  assuring economic security for the retiring leader and spouse. 
B)  training the successor. 
C)  benefits for the successor. 
D)  timing the succession. 
E)  successor selection. 
A)  assuring economic security for the retiring leader and spouse. 
B)  training the successor. 
C)  benefits for the successor. 
D)  timing the succession. 
E)  successor selection.

Question 19

What do both sole proprietorships and partnerships lack?

Accepted Answer

A)  Trust 
B)  Legal standing 
C)  Continuity 
D)  Shared vision 
E)  Adaptable processes 
A)  Trust 
B)  Legal standing 
C)  Continuity 
D)  Shared vision 
E)  Adaptable processes

Question 20

Explain what the idea of "entrepreneurial fit" means. Give an example.

Accepted Answer

Entrepreneurial fit refers to the match

Why is unlimited liability a significant disadvantage to both the sole proprietorship and general partnership forms of organization?

The size of a partnership is

According to Industry Canada there are about people who are "self- employed" and about "business establishments."

The ________ fit involves determining if the resources needed to capitalize on the opportunity can be acquired.

What is the most important factor contributing to small business failure?

A business is normally at its riskiest point during the ________ phase.

Describe the advantages and disadvantages of operating a business as a partnership.

A disadvantage of a franchise is the initial franchise fee.

To start up a new business by operating under a license issued by a parent company to local entrepreneurs who own and manage the business is known as

A limited partnership attempts to

Bill is starting up a new business. In order to raise the capital needed for the business, Bill has sold shares of his company to a few close relatives. This type of structure is known as a

Which of the following is the most significant disadvantage of starting a business from scratch?

An outside director is

Women lead only a small percentage of small- and medium-sized firms that export goods and services.

Describe the business plan and the start-up decisions made by small businesses.

What percentage of Canada's GDP is contributed by small businesses?

Ted is about to take over a family business. The issues of which he should be aware include all of the following except

What do both sole proprietorships and partnerships lack?

Explain what the idea of "entrepreneurial fit" means. Give an example.

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

Why is unlimited liability a significant disadvantage to both the sole proprietorship and general partnership forms of organization?

The size of a partnership is

According to Industry Canada there are about ________ people who are "self- employed" and about ________ "business establishments."

The ________ fit involves determining if the resources needed to capitalize on the opportunity can be acquired.

What is the most important factor contributing to small business failure?

A business is normally at its riskiest point during the ________ phase.

Describe the advantages and disadvantages of operating a business as a partnership.

A disadvantage of a franchise is the initial franchise fee.

To start up a new business by operating under a license issued by a parent company to local entrepreneurs who own and manage the business is known as

A limited partnership attempts to

Bill is starting up a new business. In order to raise the capital needed for the business, Bill has sold shares of his company to a few close relatives. This type of structure is known as a

Which of the following is the most significant disadvantage of starting a business from scratch?

An outside director is

Women lead only a small percentage of small- and medium-sized firms that export goods and services.

Describe the business plan and the start-up decisions made by small businesses.

What percentage of Canada's GDP is contributed by small businesses?

Ted is about to take over a family business. The issues of which he should be aware include all of the following except

What do both sole proprietorships and partnerships lack?

Explain what the idea of "entrepreneurial fit" means. Give an example.

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

According to Industry Canada there are about people who are "self- employed" and about "business establishments."