Question 1

The ________ fit involves determining if the resources needed to capitalize on the opportunity can be acquired.

Accepted Answer

A)  resource-entrepreneur 
B)  personal-entrepreneur 
C)  entrepreneur-opportunity 
D)  opportunity-resource 
E)  entrepreneur-resource 
A)  resource-entrepreneur 
B)  personal-entrepreneur 
C)  entrepreneur-opportunity 
D)  opportunity-resource 
E)  entrepreneur-resource

Question 2

Which of the following is correct with regard to business planning?

Accepted Answer

A)  A business plan is a good thing to have,but it is generally not a requirement for securing resources for the proposed new venture. 
B)  If market conditions are changing rapidly,the benefits gained from extensive research and planning will diminish quickly. 
C)  If the product is highly innovative,research is particularly important. 
D)  Planning should be completed before action is taken. 
E)  All things considered it is probably best to plan to start as a franchise. 
A)  A business plan is a good thing to have,but it is generally not a requirement for securing resources for the proposed new venture. 
B)  If market conditions are changing rapidly,the benefits gained from extensive research and planning will diminish quickly. 
C)  If the product is highly innovative,research is particularly important. 
D)  Planning should be completed before action is taken. 
E)  All things considered it is probably best to plan to start as a franchise.

Question 3

In order to raise money,existing corporations can sell shares in an initial public offering (IPO).

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is (are)correct with respect to financing a business?

Accepted Answer

A)  Debt financing refers to money that is borrowed,while equity financing refers to money that is invested in the business by investors in return for a share of the ownership of the company. 
B)  The most common source of debt financing is venture capitalists. 
C)  Choosing between debt and equity financing involves trade-offs with regard to immediate vs.long-term profitability. 
D)  Most new venture founders prefer equity financing because they are reluctant to give up any control to outsiders. 
E)  All these statements are correct. 
A)  Debt financing refers to money that is borrowed,while equity financing refers to money that is invested in the business by investors in return for a share of the ownership of the company. 
B)  The most common source of debt financing is venture capitalists. 
C)  Choosing between debt and equity financing involves trade-offs with regard to immediate vs.long-term profitability. 
D)  Most new venture founders prefer equity financing because they are reluctant to give up any control to outsiders. 
E)  All these statements are correct.

Question 5

The purpose of a co-operative is

Accepted Answer

A)  as a benevolent association designed to help out its members in times of need. 
B)  as an association only for farmers. 
C)  to benefit its owners in the form of reduced prices and/or distribution of surplus at year end. 
D)  to remain small so that it can help all its members on an individual basis. 
E)  to buy fertilizer at reduced prices because of volume buying on the part of its members. 
A)  as a benevolent association designed to help out its members in times of need. 
B)  as an association only for farmers. 
C)  to benefit its owners in the form of reduced prices and/or distribution of surplus at year end. 
D)  to remain small so that it can help all its members on an individual basis. 
E)  to buy fertilizer at reduced prices because of volume buying on the part of its members.

Question 6

About one-third of Canadians are self-employed.

Accepted Answer

A) True 
 B)False

Question 7

Roger has made a list of what he considers to be advantages of buying a franchise.You tell him that one item on his list is not an advantage.Which one is it?

Accepted Answer

A)  Improved chances of success 
B)  Access to big business management skills 
C)  Don't have to build a business step by step 
D)  Incentives of owning your own business 
E)  Low start-up costs 
A)  Improved chances of success 
B)  Access to big business management skills 
C)  Don't have to build a business step by step 
D)  Incentives of owning your own business 
E)  Low start-up costs

Question 8

The two most widely used methods to form a corporation include

Accepted Answer

A)  traditional or contemporary incorporation. 
B)  limited or unlimited incorporation. 
C)  private or public incorporation. 
D)  inside or outside incorporation. 
E)  federal or provincial incorporation. 
A)  traditional or contemporary incorporation. 
B)  limited or unlimited incorporation. 
C)  private or public incorporation. 
D)  inside or outside incorporation. 
E)  federal or provincial incorporation.

Question 9

Trade credit from suppliers is a form of barter between supplier and retailer.

Accepted Answer

A) True 
 B)False

Question 10

Marco and Sophia have decided to start a dry-cleaning business,but they haven't yet decided on the form of ownership they will adopt.Which of the following would weaken the case for Sophia running the business as a sole proprietorship?

Accepted Answer

A)  Sophia has an accounting degree. 
B)  Sophia's parents run a dry-cleaning business. 
C)  Sophia came up with the idea to start the new business. 
D)  Marco wants to take on a lead role in the business. 
E)  Marco does not have any previous dry-cleaning experience. 
A)  Sophia has an accounting degree. 
B)  Sophia's parents run a dry-cleaning business. 
C)  Sophia came up with the idea to start the new business. 
D)  Marco wants to take on a lead role in the business. 
E)  Marco does not have any previous dry-cleaning experience.

Question 11

Which of the following is true?

Accepted Answer

A)  Women account for about 25 percent of new businesses that are formed. 
B)  Women fail less frequently in small business than men do. 
C)  Men run about 90 percent of all small businesses. 
D)  Women lead 60 percent of small businesses that export goods and services. 
E)  Women make more money running small businesses than men do. 
A)  Women account for about 25 percent of new businesses that are formed. 
B)  Women fail less frequently in small business than men do. 
C)  Men run about 90 percent of all small businesses. 
D)  Women lead 60 percent of small businesses that export goods and services. 
E)  Women make more money running small businesses than men do.

Question 12

Describe the difference between debt and equity financing.

Accepted Answer

- debt financing involves borrowing fund

Question 13

What are the three key elements in the entrepreneurial process?

Accepted Answer

A)  The entrepreneur,the opportunity,and the marketing plan 
B)  The marketing plan,the production plan,and the finance plan 
C)  The product (or service)plan,the entrepreneur,and luck 
D)  The entrepreneur,the opportunity,and the resources 
E)  The financing plan,the product (or service)plan,and luck 
A)  The entrepreneur,the opportunity,and the marketing plan 
B)  The marketing plan,the production plan,and the finance plan 
C)  The product (or service)plan,the entrepreneur,and luck 
D)  The entrepreneur,the opportunity,and the resources 
E)  The financing plan,the product (or service)plan,and luck

Question 14

Chris wants to set up his own business,but wants to know if what he wants is the same as most entrepreneurs.Which of the following is not a typical entrepreneurial characteristic?

Accepted Answer

A)  Driven to achieve 
B)  Resourceful 
C)  Aversion to risk 
D)  Energetic 
E)  Visionary 
A)  Driven to achieve 
B)  Resourceful 
C)  Aversion to risk 
D)  Energetic 
E)  Visionary

Question 15

Most corporations are private corporations.

Accepted Answer

A) True 
 B)False

Question 16

Jeanne is not an active participant in Highline Food Company,but she has contributed a significant amount of capital as a partner to the business.Jeanne is known as a(n)________ partner.

Accepted Answer

A)  managing 
B)  general 
C)  limited 
D)  dormant 
E)  secret 
A)  managing 
B)  general 
C)  limited 
D)  dormant 
E)  secret

Question 17

In the 2011 Heritage Foundation index of economic freedom,Canada ranks higher than the U.S.

Accepted Answer

A) True 
 B)False

Question 18

Luck is a significant factor in the success of some small businesses.

Accepted Answer

A) True 
 B)False

Question 19

Paul invests $50 000 in a partnership with his sister to operate a computer sales outlet.Paul is not involved in the operation of the store and has limited liability through the written partnership agreement.What kind of partner is Paul?

Accepted Answer

A)  Secret 
B)  Ostensible 
C)  Limited 
D)  Dormant 
E)  General 
A)  Secret 
B)  Ostensible 
C)  Limited 
D)  Dormant 
E)  General

Question 20

Sam has always been interested in starting his own business,but as a recent graduate,is not certain where he can get ideas.Which of the following is a good reliable source for information needed to make the decision to start a new business?

Accepted Answer

A)  Experience in industry before starting a new business 
B)  Parents 
C)  Teachers 
D)  Bankers 
E)  Business analysts 
A)  Experience in industry before starting a new business 
B)  Parents 
C)  Teachers 
D)  Bankers 
E)  Business analysts

The ________ fit involves determining if the resources needed to capitalize on the opportunity can be acquired.

Which of the following is correct with regard to business planning?

In order to raise money,existing corporations can sell shares in an initial public offering (IPO).

Which of the following statements is (are)correct with respect to financing a business?

The purpose of a co-operative is

About one-third of Canadians are self-employed.

Roger has made a list of what he considers to be advantages of buying a franchise.You tell him that one item on his list is not an advantage.Which one is it?

The two most widely used methods to form a corporation include

Trade credit from suppliers is a form of barter between supplier and retailer.

Marco and Sophia have decided to start a dry-cleaning business,but they haven't yet decided on the form of ownership they will adopt.Which of the following would weaken the case for Sophia running the business as a sole proprietorship?

Which of the following is true?

Describe the difference between debt and equity financing.

What are the three key elements in the entrepreneurial process?

Chris wants to set up his own business,but wants to know if what he wants is the same as most entrepreneurs.Which of the following is not a typical entrepreneurial characteristic?

Most corporations are private corporations.

Jeanne is not an active participant in Highline Food Company,but she has contributed a significant amount of capital as a partner to the business.Jeanne is known as a(n)________ partner.

In the 2011 Heritage Foundation index of economic freedom,Canada ranks higher than the U.S.

Luck is a significant factor in the success of some small businesses.

Paul invests $50 000 in a partnership with his sister to operate a computer sales outlet.Paul is not involved in the operation of the store and has limited liability through the written partnership agreement.What kind of partner is Paul?

Sam has always been interested in starting his own business,but as a recent graduate,is not certain where he can get ideas.Which of the following is a good reliable source for information needed to make the decision to start a new business?

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

The ________ fit involves determining if the resources needed to capitalize on the opportunity can be acquired.

Which of the following is correct with regard to business planning?

In order to raise money,existing corporations can sell shares in an initial public offering (IPO).

Which of the following statements is (are)correct with respect to financing a business?

The purpose of a co-operative is

About one-third of Canadians are self-employed.

Roger has made a list of what he considers to be advantages of buying a franchise.You tell him that one item on his list is not an advantage.Which one is it?

The two most widely used methods to form a corporation include

Trade credit from suppliers is a form of barter between supplier and retailer.

Marco and Sophia have decided to start a dry-cleaning business,but they haven't yet decided on the form of ownership they will adopt.Which of the following would weaken the case for Sophia running the business as a sole proprietorship?

Which of the following is true?

Describe the difference between debt and equity financing.

What are the three key elements in the entrepreneurial process?

Chris wants to set up his own business,but wants to know if what he wants is the same as most entrepreneurs.Which of the following is not a typical entrepreneurial characteristic?

Most corporations are private corporations.

Jeanne is not an active participant in Highline Food Company,but she has contributed a significant amount of capital as a partner to the business.Jeanne is known as a(n)________ partner.

In the 2011 Heritage Foundation index of economic freedom,Canada ranks higher than the U.S.

Luck is a significant factor in the success of some small businesses.

Paul invests $50 000 in a partnership with his sister to operate a computer sales outlet.Paul is not involved in the operation of the store and has limited liability through the written partnership agreement.What kind of partner is Paul?

Sam has always been interested in starting his own business,but as a recent graduate,is not certain where he can get ideas.Which of the following is a good reliable source for information needed to make the decision to start a new business?

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