Question 1

Angels are equity investors.

Accepted Answer

A) True 
 B)False

Question 2

Why is there such a difference between the failure rates of small businesses in general and franchising operations in particular?

Accepted Answer

- Franchises fail less because

Question 3

The Business Development Bank of Canada has a mandate to help develop small and medium-sized Canadian businesses.

Accepted Answer

A) True 
 B)False

Question 4

Erin feels that she has a wonderful opportunity of creating 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? 
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?

Question 5

Where do the majority of entrepreneurial ideas come from?

Accepted Answer

- from everyday even

Question 6

Which of the following is considered to be an advantage to both the franchisee and the franchisor?

Accepted Answer

A)  Guaranteed success 
B)  Economies of scale in buying 
C)  Promotion savings 
D)  Recognition 
E)  Management assistance 
A)  Guaranteed success 
B)  Economies of scale in buying 
C)  Promotion savings 
D)  Recognition 
E)  Management assistance

Question 7

What is an intraprenuer?

Accepted Answer

- a person who creat

Question 8

Jody is a graduate from a business program.She can either help out in the family business or work in another organization.Which of the following is not a typical advantage associated with a family business?

Accepted Answer

A)  Highly trained individuals 
B)  Valuable community relationships 
C)  Personal sacrifices leading to financial advantage 
D)  High employee loyalty 
E)  Unified family management 
A)  Highly trained individuals 
B)  Valuable community relationships 
C)  Personal sacrifices leading to financial advantage 
D)  High employee loyalty 
E)  Unified family management

Question 9

A disadvantage of a franchise is the initial franchise fee.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an advantage for the franchisee?

Accepted Answer

A)  Freed from detail of local operations 
B)  Recognition 
C)  Rapid growth for the franchise 
D)  Low entry cost 
E)  Guaranteed success 
A)  Freed from detail of local operations 
B)  Recognition 
C)  Rapid growth for the franchise 
D)  Low entry cost 
E)  Guaranteed success

Question 11

Most new venture ideas emerge as the result of a deliberate search for viable business ideas.

Accepted Answer

A) True 
 B)False

Question 12

It is common for the initial team in a new business to consist of three people: one in production,one in marketing,and one in finance.

Accepted Answer

A) True 
 B)False

Question 13

A business that features limited liability,continuity,and easier access to money is a limited partnership.

Accepted Answer

A) True 
 B)False

Question 14

Mary is trying to decide whether to start her own business or buy a franchise.Which of the following would be a strong reason for her to buy 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 15

Start-up costs and complexities are among the main disadvantages of ________.

Accepted Answer

A)  starting up a partnership 
B)  incorporating 
C)  starting up a sole proprietorship 
D)  selling shares 
E)  none of these 
A)  starting up a partnership 
B)  incorporating 
C)  starting up a sole proprietorship 
D)  selling shares 
E)  none of these

Question 16

Which one of the following questions is not one that an entrepreneur would ask in the process of screening ideas?

Accepted Answer

A)  Is the idea marketable? 
B)  Does this have low entrance costs? 
C)  Does this create or add value for the customer? 
D)  Does it provide a sustainable competitive advantage? 
E)  Is it financially viable? 
A)  Is the idea marketable? 
B)  Does this have low entrance costs? 
C)  Does this create or add value for the customer? 
D)  Does it provide a sustainable competitive advantage? 
E)  Is it financially viable?

Question 17

A new business typically adopts one of four main organizational forms.They are

Accepted Answer

A)  franchise,sole proprietorship,partnership,or corporation. 
B)  franchise,partnership,corporation,or co-operative. 
C)  sole proprietorship,franchise,corporation,or co-operative. 
D)  sole proprietorship,partnership,corporation,or co-operative. 
E)  debt,equity,venture capital,or gifted. 
A)  franchise,sole proprietorship,partnership,or corporation. 
B)  franchise,partnership,corporation,or co-operative. 
C)  sole proprietorship,franchise,corporation,or co-operative. 
D)  sole proprietorship,partnership,corporation,or co-operative. 
E)  debt,equity,venture capital,or gifted.

Question 18

An outside director is

Accepted Answer

A)  a person who is not an employee of the company. 
B)  a person from the employee group outside the upper-level ranks. 
C)  a person selected by the CEO. 
D)  a person who is a high ranking company official. 
E)  a person from the audit committee. 
A)  a person who is not an employee of the company. 
B)  a person from the employee group outside the upper-level ranks. 
C)  a person selected by the CEO. 
D)  a person who is a high ranking company official. 
E)  a person from the audit committee.

Question 19

Franchising is a contract between a(n)________ and a(n)________ that stipulates how ________ or ________ will be sold.

Accepted Answer

A)  buyer; seller; a product; a service 
B)  retailer; outlet owner; food; a service 
C)  manufacturer; dealer; a product; a service 
D)  manufacturer; seller; a service; a product 
E)  outlet owner; dealer; food; a service 
A)  buyer; seller; a product; a service 
B)  retailer; outlet owner; food; a service 
C)  manufacturer; dealer; a product; a service 
D)  manufacturer; seller; a service; a product 
E)  outlet owner; dealer; food; a service

Question 20

Describe the criteria used to screen an entrepreneur's idea.

Accepted Answer

- Does this idea for a product or servic

Angels are equity investors.

Why is there such a difference between the failure rates of small businesses in general and franchising operations in particular?

The Business Development Bank of Canada has a mandate to help develop small and medium-sized Canadian businesses.

Erin feels that she has a wonderful opportunity of creating 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?

Where do the majority of entrepreneurial ideas come from?

Which of the following is considered to be an advantage to both the franchisee and the franchisor?

What is an intraprenuer?

Jody is a graduate from a business program.She can either help out in the family business or work in another organization.Which of the following is not a typical advantage associated with a family business?

A disadvantage of a franchise is the initial franchise fee.

Which of the following is an advantage for the franchisee?

Most new venture ideas emerge as the result of a deliberate search for viable business ideas.

It is common for the initial team in a new business to consist of three people: one in production,one in marketing,and one in finance.

A business that features limited liability,continuity,and easier access to money is a limited partnership.

Mary is trying to decide whether to start her own business or buy a franchise.Which of the following would be a strong reason for her to buy a franchise rather than start a new business?

Start-up costs and complexities are among the main disadvantages of ________.

Which one of the following questions is not one that an entrepreneur would ask in the process of screening ideas?

A new business typically adopts one of four main organizational forms.They are

An outside director is

Franchising is a contract between a(n) and a(n) that stipulates how or will be sold.

Describe the criteria used to screen an entrepreneur's idea.

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

Angels are equity investors.

Why is there such a difference between the failure rates of small businesses in general and franchising operations in particular?

The Business Development Bank of Canada has a mandate to help develop small and medium-sized Canadian businesses.

Erin feels that she has a wonderful opportunity of creating 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?

Where do the majority of entrepreneurial ideas come from?

Which of the following is considered to be an advantage to both the franchisee and the franchisor?

What is an intraprenuer?

Jody is a graduate from a business program.She can either help out in the family business or work in another organization.Which of the following is not a typical advantage associated with a family business?

A disadvantage of a franchise is the initial franchise fee.

Which of the following is an advantage for the franchisee?

Most new venture ideas emerge as the result of a deliberate search for viable business ideas.

It is common for the initial team in a new business to consist of three people: one in production,one in marketing,and one in finance.

A business that features limited liability,continuity,and easier access to money is a limited partnership.

Mary is trying to decide whether to start her own business or buy a franchise.Which of the following would be a strong reason for her to buy a franchise rather than start a new business?

Start-up costs and complexities are among the main disadvantages of ________.

Which one of the following questions is not one that an entrepreneur would ask in the process of screening ideas?

A new business typically adopts one of four main organizational forms.They are

An outside director is

Franchising is a contract between a(n)________ and a(n)________ that stipulates how ________ or ________ will be sold.

Describe the criteria used to screen an entrepreneur's idea.

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

Franchising is a contract between a(n) and a(n) that stipulates how or will be sold.