Question 1

During the period from 2002 to 2012, small businesses created ________ percent of all the jobs in Canada.

Accepted Answer

A)  8 
B)  15 
C)  28 
D)  43 
E)  77 
A)  8 
B)  15 
C)  28 
D)  43 
E)  77

Question 2

What is a private corporation?

Accepted Answer

A private corporation is one i

Question 3

Karen is trying to assess whether she can start her own small business. But, as with many small businesses, money is a problem. She asks for your help. You indicate that the most likely source of money for starting up a small business is

Accepted Answer

A)  family investment. 
B)  lottery winnings. 
C)  banks. 
D)  credit unions. 
E)  personal savings. 
A)  family investment. 
B)  lottery winnings. 
C)  banks. 
D)  credit unions. 
E)  personal savings.

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

Accepted Answer

A)  Short and Shearer could more easily obtain financing for the purchase. 
B)  Buying an existing business involves fewer legal hurdles than starting a new one. 
C)  Franchises have more potential for success than single-facility businesses. 
D)  Short and Shearer have limited funds to start with. 
E)  Existing businesses cost less to purchase than new ones. 
A)  Short and Shearer could more easily obtain financing for the purchase. 
B)  Buying an existing business involves fewer legal hurdles than starting a new one. 
C)  Franchises have more potential for success than single-facility businesses. 
D)  Short and Shearer have limited funds to start with. 
E)  Existing businesses cost less to purchase than new ones.

Question 5

What is an intrapreneur?

Accepted Answer

An intrapreneur is a person wh

Question 6

A general partnership has advantages which are similar to a sole proprietorship, such as

Accepted Answer

A)  easy to transfer ownership. 
B)  limiting owner's liability. 
C)  being simple to organize. 
D)  providing for continuity. 
E)  being dependent upon resources of an individual. 
A)  easy to transfer ownership. 
B)  limiting owner's liability. 
C)  being simple to organize. 
D)  providing for continuity. 
E)  being dependent upon resources of an individual.

Question 7

With regard to the process of screening possible ideas for a new idea, which of the following is correct?

Accepted Answer

A)  Determining whether or not the new idea adds value for customers is not essential at this early stage of the process. 
B)  It is not possible to determine at this early stage whether a new idea will actually give a company a sustained competitive advantage. 
C)  It is important to determine if sales will lead to profits. 
D)  If the idea is not expected to result in making a profit for a number of years, exit costs are low. 
E)  All of these are correct. 
A)  Determining whether or not the new idea adds value for customers is not essential at this early stage of the process. 
B)  It is not possible to determine at this early stage whether a new idea will actually give a company a sustained competitive advantage. 
C)  It is important to determine if sales will lead to profits. 
D)  If the idea is not expected to result in making a profit for a number of years, exit costs are low. 
E)  All of these are correct.

Question 8

A sales forecast is the foundation for determining the financial viability of a venture and the resources needed to start it.

Accepted Answer

A) True 
 B)False

Question 9

All of the following are common sources of equity for new ventures except

Accepted Answer

A)  banks. 
B)  personal savings. 
C)  love money. 
D)  private investors. 
E)  venture capitalists. 
A)  banks. 
B)  personal savings. 
C)  love money. 
D)  private investors. 
E)  venture capitalists.

Question 10

In the 2015 Heritage Foundation index of economic freedom, Hong Kong ranked highest and North Korea ranked lowest.

Accepted Answer

A) True 
 B)False

Question 11

Women account for ________ of all new businesses that are formed, and they lead ________ percent of the small- and medium-sized businesses that export goods and services.

Accepted Answer

A)  About one-fifth; 6 
B)  about one-quarter; 18 
C)  about one-third; 18 
D)  more than one-half; 12 
E)  two-thirds; 24 
A)  About one-fifth; 6 
B)  about one-quarter; 18 
C)  about one-third; 18 
D)  more than one-half; 12 
E)  two-thirds; 24

Question 12

Most new corporations start out as ________ corporations and then move to ________ corporations as they grow.

Accepted Answer

A)  unlimited; limited 
B)  limited; unlimited 
C)  general, active 
D)  public; private 
E)  private; public 
A)  unlimited; limited 
B)  limited; unlimited 
C)  general, active 
D)  public; private 
E)  private; public

Question 13

What is the mandate of the Business Development Bank of Canada?

Accepted Answer

The mandate of the Business Development

Question 14

With respect to the financing of a business, which one of the following statements is accurate?

Accepted Answer

A)  Love money is the most popular form of debt financing. 
B)  Suppliers typically provide long-term financing. 
C)  Debt financing refers to money invested by the owner in the company. 
D)  Borrowing money reduces the potential for higher returns when a business is performing well. 
E)  Banks are typically risk averse. 
A)  Love money is the most popular form of debt financing. 
B)  Suppliers typically provide long-term financing. 
C)  Debt financing refers to money invested by the owner in the company. 
D)  Borrowing money reduces the potential for higher returns when a business is performing well. 
E)  Banks are typically risk averse.

Question 15

In a partnership

Accepted Answer

A)  partners are not liable for debts of other partners if there is no partnership agreement. 
B)  each partner pays only his or her share of the liability even if one partner runs out of money before that partner's share is paid. 
C)  a partner is not responsible for debts if another partner created the liability through some action that violated the partnership agreement. 
D)  each partner is responsible for the debts even if the debt was the result of the actions of only one partner. 
E)  each partner is responsible only for the debts he or she incurred. 
A)  partners are not liable for debts of other partners if there is no partnership agreement. 
B)  each partner pays only his or her share of the liability even if one partner runs out of money before that partner's share is paid. 
C)  a partner is not responsible for debts if another partner created the liability through some action that violated the partnership agreement. 
D)  each partner is responsible for the debts even if the debt was the result of the actions of only one partner. 
E)  each partner is responsible only for the debts he or she incurred.

Question 16

About one-third of all new businesses owners

Accepted Answer

A)  buy an existing business. 
B)  start from scratch. 
C)  buy out a partner. 
D)  win the business in a draw. 
E)  inherit the business. 
A)  buy an existing business. 
B)  start from scratch. 
C)  buy out a partner. 
D)  win the business in a draw. 
E)  inherit the business.

Question 17

Which of the following is correct with regard to co-operatives?

Accepted Answer

A)  Co-operatives are not allowed to deduct patronage refunds to members out of before-tax income. 
B)  Members have an incentive to invest in equity capital of the co-operative. 
C)  Voting and financial control of the co-operative is typically held by a few wealthy individuals. 
D)  Double taxation affects co-operatives more negatively than corporations. 
E)  The democratic voting arrangements and dividends based purely on patronage discourage some entrepreneurs from forming or joining a co-operative. 
A)  Co-operatives are not allowed to deduct patronage refunds to members out of before-tax income. 
B)  Members have an incentive to invest in equity capital of the co-operative. 
C)  Voting and financial control of the co-operative is typically held by a few wealthy individuals. 
D)  Double taxation affects co-operatives more negatively than corporations. 
E)  The democratic voting arrangements and dividends based purely on patronage discourage some entrepreneurs from forming or joining a co-operative.

Question 18

The purpose of a co-operative is

Accepted Answer

A)  as a benevolent association designed to help out its members in times of need. 
B)  as an association only for farmers. 
C)  to benefit its owners in the form of reduced prices and/or distribution of surplus at year end. 
D)  to remain small so that they can help all their members on an individual basis. 
E)  to buy fertilizer at reduced prices because of volume buying on the part of its members. 
A)  as a benevolent association designed to help out its members in times of need. 
B)  as an association only for farmers. 
C)  to benefit its owners in the form of reduced prices and/or distribution of surplus at year end. 
D)  to remain small so that they can help all their members on an individual basis. 
E)  to buy fertilizer at reduced prices because of volume buying on the part of its members.

Question 19

Individuals who both recognize and seize opportunities are referred to as

Accepted Answer

A)  speculators. 
B)  franchisees. 
C)  entrepreneurs. 
D)  intrapreneurs. 
E)  independents. 
A)  speculators. 
B)  franchisees. 
C)  entrepreneurs. 
D)  intrapreneurs. 
E)  independents.

Question 20

During the period from 2002 to 2012, small businesses created about three-quarters of all the jobs in Canada.

Accepted Answer

A) True 
 B)False

During the period from 2002 to 2012, small businesses created ________ percent of all the jobs in Canada.

What is a private corporation?

Karen is trying to assess whether she can start her own small business. But, as with many small businesses, money is a problem. She asks for your help. You indicate that the most likely source of money for starting up a small business is

What is an intrapreneur?

A general partnership has advantages which are similar to a sole proprietorship, such as

With regard to the process of screening possible ideas for a new idea, which of the following is correct?

A sales forecast is the foundation for determining the financial viability of a venture and the resources needed to start it.

All of the following are common sources of equity for new ventures except

In the 2015 Heritage Foundation index of economic freedom, Hong Kong ranked highest and North Korea ranked lowest.

Women account for of all new businesses that are formed, and they lead percent of the small- and medium-sized businesses that export goods and services.

Most new corporations start out as corporations and then move to corporations as they grow.

What is the mandate of the Business Development Bank of Canada?

With respect to the financing of a business, which one of the following statements is accurate?

In a partnership

About one-third of all new businesses owners

Which of the following is correct with regard to co-operatives?

The purpose of a co-operative is

Individuals who both recognize and seize opportunities are referred to as

During the period from 2002 to 2012, small businesses created about three-quarters of all the jobs in Canada.

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

During the period from 2002 to 2012, small businesses created ________ percent of all the jobs in Canada.

What is a private corporation?

Karen is trying to assess whether she can start her own small business. But, as with many small businesses, money is a problem. She asks for your help. You indicate that the most likely source of money for starting up a small business is

What is an intrapreneur?

A general partnership has advantages which are similar to a sole proprietorship, such as

With regard to the process of screening possible ideas for a new idea, which of the following is correct?

A sales forecast is the foundation for determining the financial viability of a venture and the resources needed to start it.

All of the following are common sources of equity for new ventures except

In the 2015 Heritage Foundation index of economic freedom, Hong Kong ranked highest and North Korea ranked lowest.

Women account for ________ of all new businesses that are formed, and they lead ________ percent of the small- and medium-sized businesses that export goods and services.

Most new corporations start out as ________ corporations and then move to ________ corporations as they grow.

What is the mandate of the Business Development Bank of Canada?

With respect to the financing of a business, which one of the following statements is accurate?

In a partnership

About one-third of all new businesses owners

Which of the following is correct with regard to co-operatives?

The purpose of a co-operative is

Individuals who both recognize and seize opportunities are referred to as

During the period from 2002 to 2012, small businesses created about three-quarters of all the jobs in Canada.

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

Women account for of all new businesses that are formed, and they lead percent of the small- and medium-sized businesses that export goods and services.

Most new corporations start out as corporations and then move to corporations as they grow.