Question 1

Inside directors are board members who both serve on the board of directors and are company employees.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Low start-up costs,simplicity in formation,and freedom are advantages in establishing a

Accepted Answer

A)  corporation. 
B)  sole proprietorship. 
C)  partnership. 
D)  joint venture. 
E)  co-operative. 
A)  corporation. 
B)  sole proprietorship. 
C)  partnership. 
D)  joint venture. 
E)  co-operative.

Question 4

Mary Ellen is thinking about opening a pizza restaurant.Which of the following questions would be the LEAST relevant for Mary Ellen as she is trying to determine whether she has found a good opportunity?

Accepted Answer

A)  Are there other pizza restaurants close to the planned location? 
B)  Is demand for pizza growing? 
C)  Does the location she is looking at have competitive rental rates? 
D)  Will the pizzas she is planning to sell offer something unique? 
E)  Does Mary Ellen bring strong and unique talents to the business? 
A)  Are there other pizza restaurants close to the planned location? 
B)  Is demand for pizza growing? 
C)  Does the location she is looking at have competitive rental rates? 
D)  Will the pizzas she is planning to sell offer something unique? 
E)  Does Mary Ellen bring strong and unique talents to the business?

Question 5

What are the two most important questions to ask when evaluating an idea for market and financial viability?

Accepted Answer

- Are there enough c

Question 6

________ financing refers to the amount of money that is borrowed and ________ financing refers to money invested in exchange for an ownership interest.

Accepted Answer

A)  Debt; equity 
B)  Treasury; equity 
C)  Collateral; equity 
D)  Equity; debt 
E)  Treasury; debt 
A)  Debt; equity 
B)  Treasury; equity 
C)  Collateral; equity 
D)  Equity; debt 
E)  Treasury; debt

Question 7

Most new venture founders prefer debt because they are reluctant to give up any control to outsiders.

Accepted Answer

A) True 
 B)False

Question 8

Different terms-such as "Ltd." (Canada),"PLC" (U.K.),and "AG" (Germany)-all mean that investors have limited liability.

Accepted Answer

A) True 
 B)False

Question 9

The text defines a small business as an owner-managed business with fewer than 100 employees.

Accepted Answer

A) True 
 B)False

Question 10

A study conducted by CIBC found that small businesses with above-average growth rates were run by owners with more formal education.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is (are)true regarding the definition of the term "small business"?

Accepted Answer

A)  To be included in the Business Register,a business must have at least 10 paid employees and annual sales revenues of $30 000 or more. 
B)  A goods-producing business in the Business Register is considered small if it has fewer than 100 employees,while a service-producing business is considered small if it has fewer than 50 employees. 
C)  The Labour Force Survey uses information from companies to make estimates of employment and unemployment levels. 
D)  An unincorporated business operated by a self-employed person (with no employees)would be counted among the 2.3 million businesses in the Business Register. 
E)  All of these statements are true. 
A)  To be included in the Business Register,a business must have at least 10 paid employees and annual sales revenues of $30 000 or more. 
B)  A goods-producing business in the Business Register is considered small if it has fewer than 100 employees,while a service-producing business is considered small if it has fewer than 50 employees. 
C)  The Labour Force Survey uses information from companies to make estimates of employment and unemployment levels. 
D)  An unincorporated business operated by a self-employed person (with no employees)would be counted among the 2.3 million businesses in the Business Register. 
E)  All of these statements are true.

Question 12

How is a small business defined in the text?

Accepted Answer

- an independently o

Question 13

Entrepreneurial characteristics have been found to be widely distributed in the population.

Accepted Answer

A) True 
 B)False

Question 14

Many professional organizations,such as legal and accounting firms,are formed as

Accepted Answer

A)  joint ventures. 
B)  partnerships. 
C)  public corporations. 
D)  private corporations. 
E)  sole proprietorships. 
A)  joint ventures. 
B)  partnerships. 
C)  public corporations. 
D)  private corporations. 
E)  sole proprietorships.

Question 15

Discuss the four major factors that contribute to small business failure.

Accepted Answer

- managerial incompe

Question 16

In a limited partnership,all of the partners have limited liability.

Accepted Answer

A) True 
 B)False

Question 17

What is a sales forecast?

Accepted Answer

- this is an estimate of how m

Question 18

Which of the following is not typical for a sole proprietorship?

Accepted Answer

A)  Limited liability 
B)  Losing money at start-up 
C)  Lack of continuity 
D)  Easy to dissolve 
E)  Hard to borrow money 
A)  Limited liability 
B)  Losing money at start-up 
C)  Lack of continuity 
D)  Easy to dissolve 
E)  Hard to borrow money

Question 19

Your grandmother wishes to invest in your partnership,but she does not want to have unlimited liability.She should be a _________ partner.

Accepted Answer

A)  silent partner 
B)  secret partner 
C)  limited partner 
D)  dormant partner 
E)  general partner 
A)  silent partner 
B)  secret partner 
C)  limited partner 
D)  dormant partner 
E)  general partner

Question 20

Describe private investors (angels)and venture capitalists.

Accepted Answer

- Angels: a popular method of equity fin

Inside directors are board members who both serve on the board of directors and are company employees.

A limited partnership attempts to

Low start-up costs,simplicity in formation,and freedom are advantages in establishing a

Mary Ellen is thinking about opening a pizza restaurant.Which of the following questions would be the LEAST relevant for Mary Ellen as she is trying to determine whether she has found a good opportunity?

What are the two most important questions to ask when evaluating an idea for market and financial viability?

financing refers to the amount of money that is borrowed and financing refers to money invested in exchange for an ownership interest.

Most new venture founders prefer debt because they are reluctant to give up any control to outsiders.

Different terms-such as "Ltd." (Canada),"PLC" (U.K.),and "AG" (Germany)-all mean that investors have limited liability.

The text defines a small business as an owner-managed business with fewer than 100 employees.

A study conducted by CIBC found that small businesses with above-average growth rates were run by owners with more formal education.

Which of the following statements is (are)true regarding the definition of the term "small business"?

How is a small business defined in the text?

Entrepreneurial characteristics have been found to be widely distributed in the population.

Many professional organizations,such as legal and accounting firms,are formed as

Discuss the four major factors that contribute to small business failure.

In a limited partnership,all of the partners have limited liability.

What is a sales forecast?

Which of the following is not typical for a sole proprietorship?

Your grandmother wishes to invest in your partnership,but she does not want to have unlimited liability.She should be a _________ partner.

Describe private investors (angels)and venture capitalists.

Understanding the Canadian Business System

Understanding the Environments of Business

Conducting Business Ethically and Responsibly

The Global Context of Business

Managing the Business Enterprise

Managing Human Resources

Understanding Labourmanagement Relations

Motivating and Leading Employees

Producing Goods and Services

Increasing Productivity and Quality

Managing Information Systems and Communication Technology

Understanding Accounting Issues

Understanding Marketing Processes and Consumer Behaviour

Developing and Promoting Goods and Services

Pricing and Distributing Goods and Services

Understanding Money and Banking

Understanding Securities and Investments

Financial Decisions and Risk Management

Filters

Exam 4: Understanding Entrepreneurship, small Business, and New Venture Creation

Inside directors are board members who both serve on the board of directors and are company employees.

A limited partnership attempts to

Low start-up costs,simplicity in formation,and freedom are advantages in establishing a

Mary Ellen is thinking about opening a pizza restaurant.Which of the following questions would be the LEAST relevant for Mary Ellen as she is trying to determine whether she has found a good opportunity?

What are the two most important questions to ask when evaluating an idea for market and financial viability?

________ financing refers to the amount of money that is borrowed and ________ financing refers to money invested in exchange for an ownership interest.

Most new venture founders prefer debt because they are reluctant to give up any control to outsiders.

Different terms-such as "Ltd." (Canada),"PLC" (U.K.),and "AG" (Germany)-all mean that investors have limited liability.

The text defines a small business as an owner-managed business with fewer than 100 employees.

A study conducted by CIBC found that small businesses with above-average growth rates were run by owners with more formal education.

Which of the following statements is (are)true regarding the definition of the term "small business"?

How is a small business defined in the text?

Entrepreneurial characteristics have been found to be widely distributed in the population.

Many professional organizations,such as legal and accounting firms,are formed as

Discuss the four major factors that contribute to small business failure.

In a limited partnership,all of the partners have limited liability.

What is a sales forecast?

Which of the following is not typical for a sole proprietorship?

Your grandmother wishes to invest in your partnership,but she does not want to have unlimited liability.She should be a _________ partner.

Describe private investors (angels)and venture capitalists.

Understanding the Canadian Business System

Understanding the Environments of Business

Conducting Business Ethically and Responsibly

The Global Context of Business

Managing the Business Enterprise

Managing Human Resources

Understanding Labourmanagement Relations

Motivating and Leading Employees

Producing Goods and Services

Increasing Productivity and Quality

Managing Information Systems and Communication Technology

Understanding Accounting Issues

Understanding Marketing Processes and Consumer Behaviour

Developing and Promoting Goods and Services

Pricing and Distributing Goods and Services

Understanding Money and Banking

Understanding Securities and Investments

Financial Decisions and Risk Management

Filters

financing refers to the amount of money that is borrowed and financing refers to money invested in exchange for an ownership interest.