Question 1

Which of the following best describes the activity of an entrepreneur?

Accepted Answer

A)  He or she finances the business. 
B)  He or she locates the business. 
C)  He or she manages the business. 
D)  He or she owns and operates the business. 
A)  He or she finances the business. 
B)  He or she locates the business. 
C)  He or she manages the business. 
D)  He or she owns and operates the business.

Question 2

Entrepreneurs,as a general group,dislike risk taking.

Accepted Answer

A) True 
 B)False

Question 3

The most common use of a business plan is to persuade lenders and investors to finance the venture.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following provides the start-up financing for the majority of new small businesses?

Accepted Answer

A)  the local bank 
B)  venture capitalists 
C)  the business owner 
D)  the Business Development Bank of Canada 
A)  the local bank 
B)  venture capitalists 
C)  the business owner 
D)  the Business Development Bank of Canada

Question 5

Entrepreneurs start a business with the hope that they will be compensated for their investment of time,expertise,and money with profits.

Accepted Answer

A) True 
 B)False

Question 6

What is the difference between small business owners and entrepreneurs?

Accepted Answer

A)  Small business owners started the business to pursue their idea for a new product or service. 
B)  Small business owners are risk takers. 
C)  Small business owners are innovators. 
D)  Small business owners accept the status quo and take a short-term view of the future. 
A)  Small business owners started the business to pursue their idea for a new product or service. 
B)  Small business owners are risk takers. 
C)  Small business owners are innovators. 
D)  Small business owners accept the status quo and take a short-term view of the future.

Question 7

The two sources for debt financing are angel investors and venture capitalists.

Accepted Answer

A) True 
 B)False

Question 8

Direct Business Development Bank of Canada (BDC)loans are made from funds set aside each year by Parliament.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following are individual investors or groups of experienced investors who provide funding for start-up businesses?

Accepted Answer

A)  angel investors 
B)  equity entrepreneurs 
C)  opportunity entrepreneurs 
D)  entrepreneurial capitalists 
A)  angel investors 
B)  equity entrepreneurs 
C)  opportunity entrepreneurs 
D)  entrepreneurial capitalists

Question 10

In buying an existing business,the prospective buyer should ask questions about the operation of the business.Which of the following would be the most appropriate question to ask?

Accepted Answer

A)  How are you going to use the money you receive for the business? 
B)  Are any of the employees creating problems? 
C)  Who loaned you the initial investment? 
D)  Are there any problems with the business? 
A)  How are you going to use the money you receive for the business? 
B)  Are any of the employees creating problems? 
C)  Who loaned you the initial investment? 
D)  Are there any problems with the business?

Question 11

List the three most common causes for business failure.

Accepted Answer

economic factors,fin

Question 12

The Business Development Bank of Canada (BDC)assists small businesses by providing advice in management and financial matters.

Accepted Answer

A) True 
 B)False

Question 13

Many small businesses wishing to operate overseas use the services of export management companies.

Accepted Answer

A) True 
 B)False

Question 14

How are export management companies characterized?

Accepted Answer

A)  They handle all aspects of exporting,for a percentage fee of the business. 
B)  They form joint ventures with small exporting businesses. 
C)  They work on flat fees per month. 
D)  They do only consulting work. 
A)  They handle all aspects of exporting,for a percentage fee of the business. 
B)  They form joint ventures with small exporting businesses. 
C)  They work on flat fees per month. 
D)  They do only consulting work.

Question 15

Jerome Matthews is opening a small computer repair shop.Like other small-business owners,Matthews probably will experience which of the following?

Accepted Answer

A)  guaranteed profits 
B)  short work hours 
C)  burdensome government regulations 
D)  interest-free loans 
A)  guaranteed profits 
B)  short work hours 
C)  burdensome government regulations 
D)  interest-free loans

Question 16

Any company that has fewer than 15 employees is considered to be a small business-no matter who or what owns the company.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a characteristic of the entrepreneurial personality?

Accepted Answer

A)  ambitious 
B)  being a follower rather than a leader 
C)  risk-aversive 
D)  dependent on others 
A)  ambitious 
B)  being a follower rather than a leader 
C)  risk-aversive 
D)  dependent on others

Question 18

Mark Ghermizian had quit his job and was looking to start a small business so he could be his own boss.When he read that people spend up to 15 minutes every day staring at a bathroom stall door,he decided there was real advertising potential in toilet advertising.Since he has his idea,what is Ghermizian's next step?

Accepted Answer

A)  to create a name for his business 
B)  to get financing for his new business 
C)  to choose a form of business organization 
D)  to determine if he has the right personality to run a business 
A)  to create a name for his business 
B)  to get financing for his new business 
C)  to choose a form of business organization 
D)  to determine if he has the right personality to run a business

Question 19

What are the two types of financing available to entrepreneurs?

Accepted Answer

equity and

Question 20

Which of the following is the most common motive for becoming an entrepreneur?

Accepted Answer

A)  challenge of building a business 
B)  less risk because you are the boss 
C)  financial dependence 
D)  dissatisfaction with current job 
A)  challenge of building a business 
B)  less risk because you are the boss 
C)  financial dependence 
D)  dissatisfaction with current job

Which of the following best describes the activity of an entrepreneur?

Entrepreneurs,as a general group,dislike risk taking.

The most common use of a business plan is to persuade lenders and investors to finance the venture.

Which of the following provides the start-up financing for the majority of new small businesses?

Entrepreneurs start a business with the hope that they will be compensated for their investment of time,expertise,and money with profits.

What is the difference between small business owners and entrepreneurs?

The two sources for debt financing are angel investors and venture capitalists.

Direct Business Development Bank of Canada (BDC)loans are made from funds set aside each year by Parliament.

Which of the following are individual investors or groups of experienced investors who provide funding for start-up businesses?

In buying an existing business,the prospective buyer should ask questions about the operation of the business.Which of the following would be the most appropriate question to ask?

List the three most common causes for business failure.

The Business Development Bank of Canada (BDC)assists small businesses by providing advice in management and financial matters.

Many small businesses wishing to operate overseas use the services of export management companies.

How are export management companies characterized?

Jerome Matthews is opening a small computer repair shop.Like other small-business owners,Matthews probably will experience which of the following?

Any company that has fewer than 15 employees is considered to be a small business-no matter who or what owns the company.

Which of the following is a characteristic of the entrepreneurial personality?

What are the two types of financing available to entrepreneurs?

Which of the following is the most common motive for becoming an entrepreneur?

understanding Evolving Economic Systems and Competition

the Global Marketplace and Governments’ Roles

Social Trends, social Responsibility, and Making Ethical Decisions in Business

Using Technology to Manage Information and for Business Success

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Achieving World-class Operations Management

Understanding the Customer

Creating Marketing Strategies

Using Financial Information and Accounting

Understanding Money, financial Institutions, and the Securities Markets

Managing the Firm’s Finances

Filters

Exam 6: Entrepreneurship and Small Business

Which of the following best describes the activity of an entrepreneur?

Entrepreneurs,as a general group,dislike risk taking.

The most common use of a business plan is to persuade lenders and investors to finance the venture.

Which of the following provides the start-up financing for the majority of new small businesses?

Entrepreneurs start a business with the hope that they will be compensated for their investment of time,expertise,and money with profits.

What is the difference between small business owners and entrepreneurs?

The two sources for debt financing are angel investors and venture capitalists.

Direct Business Development Bank of Canada (BDC)loans are made from funds set aside each year by Parliament.

Which of the following are individual investors or groups of experienced investors who provide funding for start-up businesses?

In buying an existing business,the prospective buyer should ask questions about the operation of the business.Which of the following would be the most appropriate question to ask?

List the three most common causes for business failure.

The Business Development Bank of Canada (BDC)assists small businesses by providing advice in management and financial matters.

Many small businesses wishing to operate overseas use the services of export management companies.

How are export management companies characterized?

Jerome Matthews is opening a small computer repair shop.Like other small-business owners,Matthews probably will experience which of the following?

Any company that has fewer than 15 employees is considered to be a small business-no matter who or what owns the company.

Which of the following is a characteristic of the entrepreneurial personality?

What are the two types of financing available to entrepreneurs?

Which of the following is the most common motive for becoming an entrepreneur?

understanding Evolving Economic Systems and Competition

the Global Marketplace and Governments’ Roles

Social Trends, social Responsibility, and Making Ethical Decisions in Business

Using Technology to Manage Information and for Business Success

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Achieving World-class Operations Management

Understanding the Customer

Creating Marketing Strategies

Using Financial Information and Accounting

Understanding Money, financial Institutions, and the Securities Markets

Managing the Firm’s Finances

Filters