Question 1

If market conditions are stable, the benefits gained from research diminish quickly.

Accepted Answer

A) True 
 B)False

Question 2

Voting rights in a co-operative are

Accepted Answer

A)  not restricted just to members. 
B)  required before one can buy anything from a co-operative. 
C)  the same as those found in a corporation, that is, the more one owns or contributes the more votes one has. 
D)  nonexistent; there are no votes taken in the running of a co-operative. 
E)  one vote per member regardless of the amount owned or contributed. 
A)  not restricted just to members. 
B)  required before one can buy anything from a co-operative. 
C)  the same as those found in a corporation, that is, the more one owns or contributes the more votes one has. 
D)  nonexistent; there are no votes taken in the running of a co-operative. 
E)  one vote per member regardless of the amount owned or contributed.

Question 3

The Miller brothers (Jack, Bill, and Evan) are about to fulfill a lifelong dream. They are buying a thousand-acre farm and plan to grow corn. They are not interested in bringing in any outside owners. The brothers are realistic and expect to work very long hours. However, they have a few critical decisions left to make. Should the Miller brothers' farm be considered a small business?

Accepted Answer

The Miller brothers' farm should be cons

Question 4

Planning does not have to be complete before action is taken.

Accepted Answer

A) True 
 B)False

Question 5

Approximately how many new businesses are started each day in Canada?

Accepted Answer

A)  25 
B)  100 
C)  250 
D)  380 
E)  500 
A)  25 
B)  100 
C)  250 
D)  380 
E)  500

Question 6

Small founding teams tend to work better than big ones when starting a company, and it is quite common for the initial team to consist of just two people: a craftsperson and a salesperson.

Accepted Answer

A) True 
 B)False

Question 7

How is a small business defined?

Accepted Answer

A small business is

Question 8

A share of ownership in a corporation is referred to as

Accepted Answer

A)  a partnership. 
B)  stock. 
C)  a principle. 
D)  a directorship. 
E)  debt. 
A)  a partnership. 
B)  stock. 
C)  a principle. 
D)  a directorship. 
E)  debt.

Question 9

Suppliers who provide goods such as inventory are providing equity financing.

Accepted Answer

A) True 
 B)False

Question 10

Describe private investors (angels) and venture capitalists.

Accepted Answer

Angels are typically financially well of

Question 11

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 Nina running the business as a sole proprietorship?

Accepted Answer

A)  Sam is experienced in dry-cleaning. 
B)  Sam has a wide base of existing customer contacts. 
C)  Sam is not willing to take on legal liability in the company. 
D)  Nina is relatively new to the dry-cleaning business. 
E)  Nina is not much of a "people person." 
A)  Sam is experienced in dry-cleaning. 
B)  Sam has a wide base of existing customer contacts. 
C)  Sam is not willing to take on legal liability in the company. 
D)  Nina is relatively new to the dry-cleaning business. 
E)  Nina is not much of a "people person."

Question 12

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's starting a new business?

Accepted Answer

A)  Starting a new business allows an entrepreneur to determine their own working hours. 
B)  Starting a new business allows an entrepreneur to establish their own clientele. 
C)  Starting a new business allows an entrepreneur to use their own ideas. 
D)  Starting a new business gives a potential for a feeling of great accomplishment. 
E)  Starting a new business involves using an untested business model. 
A)  Starting a new business allows an entrepreneur to determine their own working hours. 
B)  Starting a new business allows an entrepreneur to establish their own clientele. 
C)  Starting a new business allows an entrepreneur to use their own ideas. 
D)  Starting a new business gives a potential for a feeling of great accomplishment. 
E)  Starting a new business involves using an untested business model.

Question 13

Viola wants to be a business owner and is contemplating whether to start her own business or open a franchise. Which of the following, if true, would be a compelling reason for Viola to open a franchise rather than start a new business?

Accepted Answer

A)  The franchiser requires $3000 in start-up costs and a 5 percent monthly royalty fee. 
B)  The franchiser tightly controls and monitors the service protocol. 
C)  The franchisee is responsible for developing all marketing materials. 
D)  The company has only recently become a franchise. 
E)  There are several other franchises with the same company in the area. 
A)  The franchiser requires $3000 in start-up costs and a 5 percent monthly royalty fee. 
B)  The franchiser tightly controls and monitors the service protocol. 
C)  The franchisee is responsible for developing all marketing materials. 
D)  The company has only recently become a franchise. 
E)  There are several other franchises with the same company in the area.

Question 14

Most new venture ideas come from peoples' hobbies.

Accepted Answer

A) True 
 B)False

Question 15

Sam Clark has a custom cheesecake business that he owns and operates out of his home. Sam's ownership structure likely is

Accepted Answer

A)  a franchise. 
B)  a limited partnership. 
C)  a partnership. 
D)  a corporation. 
E)  a sole proprietorship. 
A)  a franchise. 
B)  a limited partnership. 
C)  a partnership. 
D)  a corporation. 
E)  a sole proprietorship.

Question 16

Erin feels that she has a wonderful opportunity to create a new apple beverage she saw in Europe by using surplus apples grown near Georgian Bay in Ontario. At this point, which question must she answer in evaluating this opportunity?

Accepted Answer

A)  What interest rate will be charged for financing the purchase of capital equipment? 
B)  What depreciation procedures will be used? 
C)  What kind of computers should I purchase? 
D)  Where will my business be located? 
E)  Are there enough customers willing to buy this product? 
A)  What interest rate will be charged for financing the purchase of capital equipment? 
B)  What depreciation procedures will be used? 
C)  What kind of computers should I purchase? 
D)  Where will my business be located? 
E)  Are there enough customers willing to buy this product?

Question 17

The Miller brothers (Jack, Bill, and Evan) are about to fulfill a lifelong dream. They are buying a thousand-acre farm and plan to grow corn. They are not interested in bringing in any outside owners. The brothers are realistic and expect to work very long hours. Assuming the farm is organized as a private corporation, what are the advantages?

Accepted Answer

The advantages of a private corporation

Question 18

Two of the major problems in family businesses are choosing and training successors and determining the direction of the firm.

Accepted Answer

A) True 
 B)False

Question 19

Molly believes that success is almost guaranteed when one buys a franchise. You point out that she should consider the costs such as

Accepted Answer

A)  emergency needs. 
B)  operational expenses. 
C)  the franchise sales price. 
D)  training expenses. 
E)  all of these. 
A)  emergency needs. 
B)  operational expenses. 
C)  the franchise sales price. 
D)  training expenses. 
E)  all of these.

Question 20

Franchising accounts for about ________ percent of retail sales in Canada and ________ percent of GDP.

Accepted Answer

A)  10; 20 
B)  20; 30 
C)  40; 10 
D)  60; 15 
E)  80; 55 
A)  10; 20 
B)  20; 30 
C)  40; 10 
D)  60; 15 
E)  80; 55

If market conditions are stable, the benefits gained from research diminish quickly.

Voting rights in a co-operative are

Planning does not have to be complete before action is taken.

Approximately how many new businesses are started each day in Canada?

Small founding teams tend to work better than big ones when starting a company, and it is quite common for the initial team to consist of just two people: a craftsperson and a salesperson.

How is a small business defined?

A share of ownership in a corporation is referred to as

Suppliers who provide goods such as inventory are providing equity financing.

Describe private investors (angels) and venture capitalists.

Viola wants to be a business owner and is contemplating whether to start her own business or open a franchise. Which of the following, if true, would be a compelling reason for Viola to open a franchise rather than start a new business?

Most new venture ideas come from peoples' hobbies.

Sam Clark has a custom cheesecake business that he owns and operates out of his home. Sam's ownership structure likely is

Erin feels that she has a wonderful opportunity to create a new apple beverage she saw in Europe by using surplus apples grown near Georgian Bay in Ontario. At this point, which question must she answer in evaluating this opportunity?

Two of the major problems in family businesses are choosing and training successors and determining the direction of the firm.

Molly believes that success is almost guaranteed when one buys a franchise. You point out that she should consider the costs such as

Franchising accounts for about percent of retail sales in Canada and percent of GDP.

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

If market conditions are stable, the benefits gained from research diminish quickly.

Voting rights in a co-operative are

Planning does not have to be complete before action is taken.

Approximately how many new businesses are started each day in Canada?

Small founding teams tend to work better than big ones when starting a company, and it is quite common for the initial team to consist of just two people: a craftsperson and a salesperson.

How is a small business defined?

A share of ownership in a corporation is referred to as

Suppliers who provide goods such as inventory are providing equity financing.

Describe private investors (angels) and venture capitalists.

Viola wants to be a business owner and is contemplating whether to start her own business or open a franchise. Which of the following, if true, would be a compelling reason for Viola to open a franchise rather than start a new business?

Most new venture ideas come from peoples' hobbies.

Sam Clark has a custom cheesecake business that he owns and operates out of his home. Sam's ownership structure likely is

Erin feels that she has a wonderful opportunity to create a new apple beverage she saw in Europe by using surplus apples grown near Georgian Bay in Ontario. At this point, which question must she answer in evaluating this opportunity?

Two of the major problems in family businesses are choosing and training successors and determining the direction of the firm.

Molly believes that success is almost guaranteed when one buys a franchise. You point out that she should consider the costs such as

Franchising accounts for about ________ percent of retail sales in Canada and ________ percent of GDP.

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

Franchising accounts for about percent of retail sales in Canada and percent of GDP.