Question 1

Personal characteristics often have more impact on a person's actions than the situation a person is in.

Accepted Answer

A) True 
 B)False

Question 2

What is the most common reason for the failure of small business?

Accepted Answer

A)  Poor marketing 
B)  Managerial incompetence 
C)  Loss of interest in the business 
D)  Fraud 
E)  Poor production capabilities 
A)  Poor marketing 
B)  Managerial incompetence 
C)  Loss of interest in the business 
D)  Fraud 
E)  Poor production capabilities

Question 3

What does it mean to say that shareholders in a corporation have limited liability?

Accepted Answer

- shareholders can o

Question 4

Having decided to start a new business,where would you look for the money needed to start the business?

Accepted Answer

- personal resources

Question 5

A general partnership has advantages that are similar to a sole proprietorship,such as

Accepted Answer

A)  easy to transfer ownership. 
B)  limiting owner's liability. 
C)  being simple to organize. 
D)  providing for continuity. 
E)  being dependent upon resources of an individual. 
A)  easy to transfer ownership. 
B)  limiting owner's liability. 
C)  being simple to organize. 
D)  providing for continuity. 
E)  being dependent upon resources of an individual.

Question 6

A major disadvantage of the sole proprietorship is

Accepted Answer

A)  the ability to grow by adding talent. 
B)  high start-up costs. 
C)  unlimited liability. 
D)  the lack of freedom in making business decisions. 
E)  the difficulty in beginning business activities. 
A)  the ability to grow by adding talent. 
B)  high start-up costs. 
C)  unlimited liability. 
D)  the lack of freedom in making business decisions. 
E)  the difficulty in beginning business activities.

Question 7

There are approximately ________ women entrepreneurs in Canada.

Accepted Answer

A)  18 000 
B)  1 million 
C)  910 000 
D)  54 000 
E)  1.5 million 
A)  18 000 
B)  1 million 
C)  910 000 
D)  54 000 
E)  1.5 million

Question 8

A sole proprietorship is easy to form.

Accepted Answer

A) True 
 B)False

Question 9

About one-third of all new businesses owners

Accepted Answer

A)  buy an existing business. 
B)  start from scratch. 
C)  buy out the other partner. 
D)  win the business in a draw. 
E)  inherit the business. 
A)  buy an existing business. 
B)  start from scratch. 
C)  buy out the other partner. 
D)  win the business in a draw. 
E)  inherit the business.

Question 10

Entrepreneurship is defined as an individual's willingness to take advantage of business opportunities and to assume the risks of establishing and operating a business.

Accepted Answer

A) True 
 B)False

Question 11

________ is an example of a debt source and ________ is an example of an equity source.

Accepted Answer

A)  Trade credit; personal savings 
B)  Venture capitalists; entrepreneur's personal funds 
C)  private investors; private lenders 
D)  personal savings; governments 
E)  love money; governments 
A)  Trade credit; personal savings 
B)  Venture capitalists; entrepreneur's personal funds 
C)  private investors; private lenders 
D)  personal savings; governments 
E)  love money; governments

Question 12

A business is considered to be "new" if it has become operational within the previous 12 months,if it adopts any of the main organizational forms (proprietorship,partnership,corporation,or co-operative),and if it sells goods or services.

Accepted Answer

A) True 
 B)False

Question 13

A financial forecast includes all of these items except

Accepted Answer

A)  a cash budget. 
B)  an estimate of start-up costs. 
C)  an income statement. 
D)  a listing of potential customers. 
E)  a balance sheet. 
A)  a cash budget. 
B)  an estimate of start-up costs. 
C)  an income statement. 
D)  a listing of potential customers. 
E)  a balance sheet.

Question 14

How does franchising work?

Accepted Answer

- a legal agreement to supply

Question 15

Discuss the two most widely used methods to form a corporation.What are the stipulations to becoming federally incorporated?

Accepted Answer

- federal incorporation under the Canada

Question 16

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 is 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 is 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 17

A very significant advantage of a franchise as a way of running a small business is that the chances of success are enhanced.

Accepted Answer

A) True 
 B)False

Question 18

What are some of the difficulties that are involved in defining what a small business is?

Accepted Answer

Various measures might be used,including

Question 19

Which is the most common source of ideas for a new venture?

Accepted Answer

A)  Brainstorming 
B)  Family 
C)  Work experiences 
D)  Children 
E)  Magazines 
A)  Brainstorming 
B)  Family 
C)  Work experiences 
D)  Children 
E)  Magazines

Question 20

Which of the following is correct with regard to collateral?

Accepted Answer

A)  It refers to business (but not personal)assets that a borrower uses to secure a loan or other credit. 
B)  It includes tangible assets like buildings as well as intangible assets like goodwill. 
C)  Collateral can be seized by the lender if the loan is not repaid according to specified terms. 
D)  It refers to personal (but not business)assets that a borrower uses to secure a loan or other credit. 
E)  Banks are most impressed with debt investment. 
A)  It refers to business (but not personal)assets that a borrower uses to secure a loan or other credit. 
B)  It includes tangible assets like buildings as well as intangible assets like goodwill. 
C)  Collateral can be seized by the lender if the loan is not repaid according to specified terms. 
D)  It refers to personal (but not business)assets that a borrower uses to secure a loan or other credit. 
E)  Banks are most impressed with debt investment.

Personal characteristics often have more impact on a person's actions than the situation a person is in.

What is the most common reason for the failure of small business?

What does it mean to say that shareholders in a corporation have limited liability?

Having decided to start a new business,where would you look for the money needed to start the business?

A general partnership has advantages that are similar to a sole proprietorship,such as

A major disadvantage of the sole proprietorship is

There are approximately ________ women entrepreneurs in Canada.

A sole proprietorship is easy to form.

About one-third of all new businesses owners

Entrepreneurship is defined as an individual's willingness to take advantage of business opportunities and to assume the risks of establishing and operating a business.

is an example of a debt source and is an example of an equity source.

A business is considered to be "new" if it has become operational within the previous 12 months,if it adopts any of the main organizational forms (proprietorship,partnership,corporation,or co-operative),and if it sells goods or services.

A financial forecast includes all of these items except

How does franchising work?

Discuss the two most widely used methods to form a corporation.What are the stipulations to becoming federally incorporated?

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

A very significant advantage of a franchise as a way of running a small business is that the chances of success are enhanced.

What are some of the difficulties that are involved in defining what a small business is?

Which is the most common source of ideas for a new venture?

Which of the following is correct with regard to collateral?

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

Personal characteristics often have more impact on a person's actions than the situation a person is in.

What is the most common reason for the failure of small business?

What does it mean to say that shareholders in a corporation have limited liability?

Having decided to start a new business,where would you look for the money needed to start the business?

A general partnership has advantages that are similar to a sole proprietorship,such as

A major disadvantage of the sole proprietorship is

There are approximately ________ women entrepreneurs in Canada.

A sole proprietorship is easy to form.

About one-third of all new businesses owners

Entrepreneurship is defined as an individual's willingness to take advantage of business opportunities and to assume the risks of establishing and operating a business.

________ is an example of a debt source and ________ is an example of an equity source.

A business is considered to be "new" if it has become operational within the previous 12 months,if it adopts any of the main organizational forms (proprietorship,partnership,corporation,or co-operative),and if it sells goods or services.

A financial forecast includes all of these items except

How does franchising work?

Discuss the two most widely used methods to form a corporation.What are the stipulations to becoming federally incorporated?

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

A very significant advantage of a franchise as a way of running a small business is that the chances of success are enhanced.

What are some of the difficulties that are involved in defining what a small business is?

Which is the most common source of ideas for a new venture?

Which of the following is correct with regard to collateral?

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

is an example of a debt source and is an example of an equity source.