Question 1

Which of the following is not likely to be provided by the seller of a franchise?

Accepted Answer

A)  Financing help 
B)  Guarantee of success 
C)  Marketing strategy 
D)  Training for employees and managers 
E)  Management advice 
A)  Financing help 
B)  Guarantee of success 
C)  Marketing strategy 
D)  Training for employees and managers 
E)  Management advice

Question 2

At Telus, the redesign of the company's website was the result of ________ in a large firm.

Accepted Answer

A)  product refinement 
B)  intrapreneurship 
C)  entrepreneurship 
D)  starting a business from scratch 
E)  marketing research 
A)  product refinement 
B)  intrapreneurship 
C)  entrepreneurship 
D)  starting a business from scratch 
E)  marketing research

Question 3

Robert wants to start a new business. At this point, he needs to ask himself all of the following questions except

Accepted Answer

A)  what is my competitive advantage? 
B)  how much will the customer buy? 
C)  what legal form should the business take? 
D)  what value is created or added to for the customer? 
E)  what is the marketability of this idea? 
A)  what is my competitive advantage? 
B)  how much will the customer buy? 
C)  what legal form should the business take? 
D)  what value is created or added to for the customer? 
E)  what is the marketability of this idea?

Question 4

Which of the following is correct with regard to the issue of where new ideas for a business come from?

Accepted Answer

A)  The most important source of ideas for a new venture arise as the result of a conscious search for new venture ideas. 
B)  About half of all new venture ideas come from insights gained or skills learned at a previous job. 
C)  Personal hobbies or interests are the most important source of ideas for a new venture. 
D)  Suggestions from family members are an important (but not the most important) factor in coming up with new venture ideas. 
E)  There is no particular pattern in the development of ideas for a new venture. 
A)  The most important source of ideas for a new venture arise as the result of a conscious search for new venture ideas. 
B)  About half of all new venture ideas come from insights gained or skills learned at a previous job. 
C)  Personal hobbies or interests are the most important source of ideas for a new venture. 
D)  Suggestions from family members are an important (but not the most important) factor in coming up with new venture ideas. 
E)  There is no particular pattern in the development of ideas for a new venture.

Question 5

Explain why double taxation is considered a disadvantage of a corporate form of organization. Explain how double taxation occurs.

Accepted Answer

A corporation must pay income taxes on i

Question 6

What is the most significant disadvantage of owning a franchise?

Accepted Answer

A)  Start-up costs 
B)  Operational guidelines 
C)  Difficulty obtaining loans 
D)  Double taxation 
E)  Competition 
A)  Start-up costs 
B)  Operational guidelines 
C)  Difficulty obtaining loans 
D)  Double taxation 
E)  Competition

Question 7

What are the three key elements in the entrepreneurial process?

Accepted Answer

The three key elemen

Question 8

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 Sam and Nina owning the business in a partnership?

Accepted Answer

A)  Sam and Nina have different personalities. 
B)  Sam and Nina have known each other for many years. 
C)  Sam and Nina have conflicting ideas about what would make a dry-cleaning business succeed. 
D)  Nina is experienced in finance but not in equipment repair. 
E)  Sam is experienced in dry-cleaning but not skilled as an administrator. 
A)  Sam and Nina have different personalities. 
B)  Sam and Nina have known each other for many years. 
C)  Sam and Nina have conflicting ideas about what would make a dry-cleaning business succeed. 
D)  Nina is experienced in finance but not in equipment repair. 
E)  Sam is experienced in dry-cleaning but not skilled as an administrator.

Question 9

Which of the following statements is accurate?

Accepted Answer

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

Question 10

What is an entrepreneur?

Accepted Answer

An entrepreneur is a business

Question 11

Who are the owners of a corporation?

Accepted Answer

A)  The board of directors 
B)  The financial officers 
C)  The stockholders 
D)  The top managers 
E)  The creditors 
A)  The board of directors 
B)  The financial officers 
C)  The stockholders 
D)  The top managers 
E)  The creditors

Question 12

________ is the governing body of a corporation.

Accepted Answer

A)  The board of directors 
B)  The majority shareholders committee 
C)  The audit committee 
D)  The CEO 
E)  A shareholders' board 
A)  The board of directors 
B)  The majority shareholders committee 
C)  The audit committee 
D)  The CEO 
E)  A shareholders' board

Question 13

How does franchising work?

Accepted Answer

A franchising agreement outlines the dut

Question 14

Jonathan is upset, claiming that he is a victim of double taxation. What form of business is he involved in?

Accepted Answer

A)  Unlimited liability 
B)  Partnership 
C)  Corporation 
D)  Big business venture 
E)  Small corporate venture 
A)  Unlimited liability 
B)  Partnership 
C)  Corporation 
D)  Big business venture 
E)  Small corporate venture

Question 15

Which one of the following statements is correct?

Accepted Answer

A)  Love money is a 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 a 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 16

Where do the majority of entrepreneurial ideas come from?

Accepted Answer

They come from everyday events

Question 17

A new firm is

Accepted Answer

A)  one that has been in business for 5 years or less. 
B)  one that has not yet opened for business. 
C)  one with less than 10 years' experience. 
D)  one that has become operational within the previous 12 months. 
E)  one that opened its doors within the past 6 months. 
A)  one that has been in business for 5 years or less. 
B)  one that has not yet opened for business. 
C)  one with less than 10 years' experience. 
D)  one that has become operational within the previous 12 months. 
E)  one that opened its doors within the past 6 months.

Question 18

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 best explains why flexibility is an important quality that Christina needs for success?

Accepted Answer

A)  It takes a certain amount of money to start a business. 
B)  It often helps to have a business partner in a new business. 
C)  Starting a new business requires a great deal of planning. 
D)  Starting and running a new business involves many unpredictable factors. 
E)  An entrepreneur must be extremely competent in business skills. 
A)  It takes a certain amount of money to start a business. 
B)  It often helps to have a business partner in a new business. 
C)  Starting a new business requires a great deal of planning. 
D)  Starting and running a new business involves many unpredictable factors. 
E)  An entrepreneur must be extremely competent in business skills.

Question 19

How has the Internet affected small business start-ups in recent years?

Accepted Answer

Entrepreneurs can create and expand new

Question 20

Most new ventures are the result of a search for a viable business idea.

Accepted Answer

A) True 
 B)False

Which of the following is not likely to be provided by the seller of a franchise?

At Telus, the redesign of the company's website was the result of ________ in a large firm.

Robert wants to start a new business. At this point, he needs to ask himself all of the following questions except

Which of the following is correct with regard to the issue of where new ideas for a business come from?

Explain why double taxation is considered a disadvantage of a corporate form of organization. Explain how double taxation occurs.

What is the most significant disadvantage of owning a franchise?

What are the three key elements in the entrepreneurial process?

Which of the following statements is accurate?

What is an entrepreneur?

Who are the owners of a corporation?

________ is the governing body of a corporation.

How does franchising work?

Jonathan is upset, claiming that he is a victim of double taxation. What form of business is he involved in?

Which one of the following statements is correct?

Where do the majority of entrepreneurial ideas come from?

A new firm is

How has the Internet affected small business start-ups in recent years?

Most new ventures are the result of a search for a viable business idea.

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

Which of the following is not likely to be provided by the seller of a franchise?

At Telus, the redesign of the company's website was the result of ________ in a large firm.

Robert wants to start a new business. At this point, he needs to ask himself all of the following questions except

Which of the following is correct with regard to the issue of where new ideas for a business come from?

Explain why double taxation is considered a disadvantage of a corporate form of organization. Explain how double taxation occurs.

What is the most significant disadvantage of owning a franchise?

What are the three key elements in the entrepreneurial process?

Which of the following statements is accurate?

What is an entrepreneur?

Who are the owners of a corporation?

________ is the governing body of a corporation.

How does franchising work?

Jonathan is upset, claiming that he is a victim of double taxation. What form of business is he involved in?

Which one of the following statements is correct?

Where do the majority of entrepreneurial ideas come from?

A new firm is

How has the Internet affected small business start-ups in recent years?

Most new ventures are the result of a search for a viable business idea.

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