Question 1

Franchising accounts for approximately ____ percent of retail sales in Canada.

Accepted Answer

A)  10 
B)  20 
C)  30 
D)  40 
E)  50 
A)  10 
B)  20 
C)  30 
D)  40 
E)  50

Question 2

Small businesses often provide an environment to use personal attributes such as creativity.

Accepted Answer

A) True 
 B)False

Question 3

A ________ is an incorporated form of business that is organized,owned,and democratically controlled by the people who use its products and services.

Accepted Answer

A)  partnership 
B)  proprietorship 
C)  co-operative 
D)  corporation 
E)  preferred share 
A)  partnership 
B)  proprietorship 
C)  co-operative 
D)  corporation 
E)  preferred share

Question 4

Franchising accounts for approximately 40 percent of retail sales in Canada.

Accepted Answer

A) True 
 B)False

Question 5

What are the three key entrepreneurial process elements?

Accepted Answer

- the entrepreneur

Question 6

Suzy is considering incorporating her financial consulting business.Of the items listed below,which one would not be a problem if she incorporates?

Accepted Answer

A)  Heavy regulation 
B)  Double taxation 
C)  Complex legal requirements 
D)  Unlimited liability 
E)  High costs of incorporation 
A)  Heavy regulation 
B)  Double taxation 
C)  Complex legal requirements 
D)  Unlimited liability 
E)  High costs of incorporation

Question 7

A co-operative is an incorporated form of business.

Accepted Answer

A) True 
 B)False

Question 8

In the Business Register,a goods-producing business is considered small if it has fewer than ____employees,and a service-producing business is considered small if it has fewer than ___ employees.

Accepted Answer

A)  1000;500 
B)  500;1000 
C)  100;50 
D)  500;250 
E)  250;500 
A)  1000;500 
B)  500;1000 
C)  100;50 
D)  500;250 
E)  250;500

Question 9

Disadvantages of the general partnership form of business organization include

Accepted Answer

A)  limited liability. 
B)  simplicity of establishment. 
C)  lack of continuity. 
D)  difficult to organize. 
E)  ability to provide dividends to shareholders. 
A)  limited liability. 
B)  simplicity of establishment. 
C)  lack of continuity. 
D)  difficult to organize. 
E)  ability to provide dividends to shareholders.

Question 10

Venture capitalists

Accepted Answer

A)  require collateral for all transactions. 
B)  are risk averse lenders. 
C)  loan money to promising new ventures in return for a share of ownership in the business 
D)  offer loans with a maximum 90-day payback period. 
E)  are individuals in the U.S.who are willing to loan money to Canadians who want to start a business. 
A)  require collateral for all transactions. 
B)  are risk averse lenders. 
C)  loan money to promising new ventures in return for a share of ownership in the business 
D)  offer loans with a maximum 90-day payback period. 
E)  are individuals in the U.S.who are willing to loan money to Canadians who want to start a business.

Question 11

Should government be involved in giving assistance to small businesses?

Accepted Answer

Answers will vary.An example of a "Yes"

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

With respect to the financing of a business,which one of the following statements is accurate?

Accepted Answer

A)  Love money is the most popular 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 the most popular 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 14

Most new corporations start out as ________ corporations and then move to ________ corporations as they grow.

Accepted Answer

A)  unlimited; limited 
B)  limited; unlimited 
C)  general,active 
D)  public; private 
E)  private; public 
A)  unlimited; limited 
B)  limited; unlimited 
C)  general,active 
D)  public; private 
E)  private; public

Question 15

In order to obtain debt financing,an entrepreneur typically must have at least ________ equity investment in the business.

Accepted Answer

A)  35% 
B)  50% 
C)  20% 
D)  40% 
E)  60% 
A)  35% 
B)  50% 
C)  20% 
D)  40% 
E)  60%

Question 16

Discuss the four major factors that impact small business success.

Accepted Answer

- hard work,drive,and dedicati

Question 17

The majority of businesses in Canada have no employees (just the owner),nor are they incorporated.

Accepted Answer

A) True 
 B)False

Question 18

Lester is hoping that by buying a franchise he will get a lot of assistance from the company providing the franchise.Which of the following would not be a benefit to Lester should he decide to buy a franchise?

Accepted Answer

A)  Recognition 
B)  Guaranteed success 
C)  Management assistance 
D)  Standardized appearance of the franchise 
E)  Economies of scale in buying 
A)  Recognition 
B)  Guaranteed success 
C)  Management assistance 
D)  Standardized appearance of the franchise 
E)  Economies of scale in buying

Question 19

An organization designed to avoid paying corporate tax by distributing all or most of their earnings to their shareholders is

Accepted Answer

A)  an income trust. 
B)  a shareholders co-operative. 
C)  a public company. 
D)  a limited partnership. 
E)  a private corporation. 
A)  an income trust. 
B)  a shareholders co-operative. 
C)  a public company. 
D)  a limited partnership. 
E)  a private corporation.

Question 20

In the Business Register,a goods-producing business is "small" if it has fewer than 100 employees,while a service-producing business is "small" if it has fewer than 50 employees.

Accepted Answer

A) True 
 B)False

Franchising accounts for approximately ____ percent of retail sales in Canada.

Small businesses often provide an environment to use personal attributes such as creativity.

A ________ is an incorporated form of business that is organized,owned,and democratically controlled by the people who use its products and services.

Franchising accounts for approximately 40 percent of retail sales in Canada.

What are the three key entrepreneurial process elements?

Suzy is considering incorporating her financial consulting business.Of the items listed below,which one would not be a problem if she incorporates?

A co-operative is an incorporated form of business.

In the Business Register,a goods-producing business is considered small if it has fewer than __employees,and a service-producing business is considered small if it has fewer than _ employees.

Disadvantages of the general partnership form of business organization include

Venture capitalists

Should government be involved in giving assistance to small businesses?

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

With respect to the financing of a business,which one of the following statements is accurate?

Most new corporations start out as corporations and then move to corporations as they grow.

In order to obtain debt financing,an entrepreneur typically must have at least ________ equity investment in the business.

Discuss the four major factors that impact small business success.

The majority of businesses in Canada have no employees (just the owner),nor are they incorporated.

Lester is hoping that by buying a franchise he will get a lot of assistance from the company providing the franchise.Which of the following would not be a benefit to Lester should he decide to buy a franchise?

An organization designed to avoid paying corporate tax by distributing all or most of their earnings to their shareholders is

In the Business Register,a goods-producing business is "small" if it has fewer than 100 employees,while a service-producing business is "small" if it has fewer than 50 employees.

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

Franchising accounts for approximately ____ percent of retail sales in Canada.

Small businesses often provide an environment to use personal attributes such as creativity.

A ________ is an incorporated form of business that is organized,owned,and democratically controlled by the people who use its products and services.

Franchising accounts for approximately 40 percent of retail sales in Canada.

What are the three key entrepreneurial process elements?

Suzy is considering incorporating her financial consulting business.Of the items listed below,which one would not be a problem if she incorporates?

A co-operative is an incorporated form of business.

In the Business Register,a goods-producing business is considered small if it has fewer than ____employees,and a service-producing business is considered small if it has fewer than ___ employees.

Disadvantages of the general partnership form of business organization include

Venture capitalists

Should government be involved in giving assistance to small businesses?

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

With respect to the financing of a business,which one of the following statements is accurate?

Most new corporations start out as ________ corporations and then move to ________ corporations as they grow.

In order to obtain debt financing,an entrepreneur typically must have at least ________ equity investment in the business.

Discuss the four major factors that impact small business success.

The majority of businesses in Canada have no employees (just the owner),nor are they incorporated.

Lester is hoping that by buying a franchise he will get a lot of assistance from the company providing the franchise.Which of the following would not be a benefit to Lester should he decide to buy a franchise?

An organization designed to avoid paying corporate tax by distributing all or most of their earnings to their shareholders is

In the Business Register,a goods-producing business is "small" if it has fewer than 100 employees,while a service-producing business is "small" if it has fewer than 50 employees.

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

In the Business Register,a goods-producing business is considered small if it has fewer than __employees,and a service-producing business is considered small if it has fewer than _ employees.

Most new corporations start out as corporations and then move to corporations as they grow.