Question 1

Which of the following statements about partnerships is false?

Accepted Answer

A)  A partner cannot sell his or her interest without the other partners' consent. 
B)  The partnership terminates upon the death of a partner. 
C)  A partner cannot retire without the other partners' consent. 
D)  General partnerships are limited to ten partners. 
E)  It is easier to borrow money than a sole proprietorship. 
A)  A partner cannot sell his or her interest without the other partners' consent. 
B)  The partnership terminates upon the death of a partner. 
C)  A partner cannot retire without the other partners' consent. 
D)  General partnerships are limited to ten partners. 
E)  It is easier to borrow money than a sole proprietorship.

Question 2

Which of the following is not likely to be provided by the seller of a franchise?

Accepted Answer

A)  Training for employees and managers 
B)  Management advice 
C)  Guarantee of success 
D)  Financing help 
E)  Marketing strategy 
A)  Training for employees and managers 
B)  Management advice 
C)  Guarantee of success 
D)  Financing help 
E)  Marketing strategy

Question 3

Karen is trying to assess whether she can start her own small business.But,as with many small businesses,money is a problem.She asks for your help.You indicate that the most likely source of money for starting up a small business is

Accepted Answer

A)  family investment. 
B)  lottery winnings. 
C)  banks. 
D)  credit unions. 
E)  personal savings. 
A)  family investment. 
B)  lottery winnings. 
C)  banks. 
D)  credit unions. 
E)  personal savings.

Question 4

What percentage of businesses in Canada have fewer than 100 employees?

Accepted Answer

A)  98 
B)  58 
C)  88 
D)  78 
E)  28 
A)  98 
B)  58 
C)  88 
D)  78 
E)  28

Question 5

Hector wants to buy a franchise.He has developed a list of advantages and disadvantages.Which one does not apply?

Accepted Answer

A)  The start-up costs 
B)  A franchise arrangement combines the incentive of owning a business with the advantage of access to big business management skills 
C)  Franchises have a greater success rate than starting businesses from scratch 
D)  Usually involves contributing a percentage of the sales to the parent company 
E)  It is virtually impossible to lose money owning a well-known franchise 
A)  The start-up costs 
B)  A franchise arrangement combines the incentive of owning a business with the advantage of access to big business management skills 
C)  Franchises have a greater success rate than starting businesses from scratch 
D)  Usually involves contributing a percentage of the sales to the parent company 
E)  It is virtually impossible to lose money owning a well-known franchise

Question 6

Which of the following best explains why flexibility is an important quality that an entrepreneur needs in order to be successful?

Accepted Answer

A)  It takes a certain amount of money to start a business. 
B)  It often helps to have a business partner in a new business. 
C)  Starting a new business requires a great deal of planning. 
D)  Starting and running a new business involves many unpredictable factors. 
E)  An entrepreneur must be extremely competent in business skills. 
A)  It takes a certain amount of money to start a business. 
B)  It often helps to have a business partner in a new business. 
C)  Starting a new business requires a great deal of planning. 
D)  Starting and running a new business involves many unpredictable factors. 
E)  An entrepreneur must be extremely competent in business skills.

Question 7

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 strengthen the case for Sophia running the business as a sole proprietorship?

Accepted Answer

A)  Sam has experience in the dry-cleaning business. 
B)  Sam has a large base of customer contacts. 
C)  Sam refuses to take on legal liability in the company. 
D)  Sophia is relatively new to the dry-cleaning business. 
E)  Sophia is not a "people person." 
A)  Sam has experience in the dry-cleaning business. 
B)  Sam has a large base of customer contacts. 
C)  Sam refuses to take on legal liability in the company. 
D)  Sophia is relatively new to the dry-cleaning business. 
E)  Sophia is not a "people person."

Question 8

Describe the role and responsibilities of the board of directors.

Accepted Answer

- a board of directors oversees the corp

Question 9

Which of the following questions would be LEAST helpful to ask in a newly formed business?

Accepted Answer

A)  Does the company's actual operations align well with what is in the business plan? 
B)  How many employees have we hired this month? 
C)  How well are we handling our finances? 
D)  What is the performance level of our employees? 
E)  How much debt can this business afford to carry? 
A)  Does the company's actual operations align well with what is in the business plan? 
B)  How many employees have we hired this month? 
C)  How well are we handling our finances? 
D)  What is the performance level of our employees? 
E)  How much debt can this business afford to carry?

Question 10

All of the following are common sources of equity for new ventures except

Accepted Answer

A)  banks. 
B)  personal savings. 
C)  love money. 
D)  private investors. 
E)  venture capitalists. 
A)  banks. 
B)  personal savings. 
C)  love money. 
D)  private investors. 
E)  venture capitalists.

Question 11

The Swiffer product line from Procter & Gamble was the result of __________ in a large firm.

Accepted Answer

A)  product refinement 
B)  intrapreneurship 
C)  entrepreneurship 
D)  starting a business from scratch 
E)  marketing research 
A)  product refinement 
B)  intrapreneurship 
C)  entrepreneurship 
D)  starting a business from scratch 
E)  marketing research

Question 12

A business is at its riskiest point during the start-up phase.

Accepted Answer

A) True 
 B)False

Question 13

Why is it important to have a business plan?

Accepted Answer

- to help organize and act as a road map

Question 14

Bootstrapping involves all of the following actions except

Accepted Answer

A)  acquiring resources such as people and equipment. 
B)  doing more with less. 
C)  purchasing as many resources as possible. 
D)  using other people's resources. 
E)  borrowing materials. 
A)  acquiring resources such as people and equipment. 
B)  doing more with less. 
C)  purchasing as many resources as possible. 
D)  using other people's resources. 
E)  borrowing materials.

Question 15

According to Industry Canada,small businesses account for over two-thirds of employment in which of the following industries?

Accepted Answer

A)  Non-institutional health care,other services,manufacturing,and construction 
B)  Other services,manufacturing,construction,and accommodation and food 
C)  Accommodation and food,non-institutional health care,other services,and manufacturing 
D)  Construction,non-institutional health care,other services,and accommodation and food 
E)  Manufacturing,non-institutional health care,other services,and construction 
A)  Non-institutional health care,other services,manufacturing,and construction 
B)  Other services,manufacturing,construction,and accommodation and food 
C)  Accommodation and food,non-institutional health care,other services,and manufacturing 
D)  Construction,non-institutional health care,other services,and accommodation and food 
E)  Manufacturing,non-institutional health care,other services,and construction

Question 16

Margaret has an opportunity to buy an existing business.She should be aware of all of the following except

Accepted Answer

A)  the location of the business. 
B)  the legal form of the business. 
C)  the difficulty in determining an appropriate price for the business. 
D)  the incomplete knowledge of the state of the business. 
E)  the reputation of the business. 
A)  the location of the business. 
B)  the legal form of the business. 
C)  the difficulty in determining an appropriate price for the business. 
D)  the incomplete knowledge of the state of the business. 
E)  the reputation of the business.

Question 17

If a new venture is expected to make a profit quickly,its exit costs will be lower.

Accepted Answer

A) True 
 B)False

Question 18

In the eyes of the law,a partnership is nothing more than two or more persons working together.

Accepted Answer

A) True 
 B)False

Question 19

The risks of starting a business from scratch are greater than the risks of buying an existing firm.

Accepted Answer

A) True 
 B)False

Question 20

Gloria wants to turn her sole proprietorship into a corporation.Among the things that she must consider are

Accepted Answer

A)  sole proprietorships must be made into partnerships before they can be made into corporations. 
B)  there is a threat of a hostile takeover if she has a private corporation. 
C)  double taxation that occurs with corporations. 
D)  the cost of dissolving her sole proprietorship will be high. 
E)  she has to decide whether or not she will issue shares when the company becomes a corporation. 
A)  sole proprietorships must be made into partnerships before they can be made into corporations. 
B)  there is a threat of a hostile takeover if she has a private corporation. 
C)  double taxation that occurs with corporations. 
D)  the cost of dissolving her sole proprietorship will be high. 
E)  she has to decide whether or not she will issue shares when the company becomes a corporation.

Which of the following statements about partnerships is false?

Which of the following is not likely to be provided by the seller of a franchise?

Karen is trying to assess whether she can start her own small business.But,as with many small businesses,money is a problem.She asks for your help.You indicate that the most likely source of money for starting up a small business is

What percentage of businesses in Canada have fewer than 100 employees?

Hector wants to buy a franchise.He has developed a list of advantages and disadvantages.Which one does not apply?

Which of the following best explains why flexibility is an important quality that an entrepreneur needs in order to be successful?

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 strengthen the case for Sophia running the business as a sole proprietorship?

Describe the role and responsibilities of the board of directors.

Which of the following questions would be LEAST helpful to ask in a newly formed business?

All of the following are common sources of equity for new ventures except

The Swiffer product line from Procter & Gamble was the result of __________ in a large firm.

A business is at its riskiest point during the start-up phase.

Why is it important to have a business plan?

Bootstrapping involves all of the following actions except

According to Industry Canada,small businesses account for over two-thirds of employment in which of the following industries?

Margaret has an opportunity to buy an existing business.She should be aware of all of the following except

If a new venture is expected to make a profit quickly,its exit costs will be lower.

In the eyes of the law,a partnership is nothing more than two or more persons working together.

The risks of starting a business from scratch are greater than the risks of buying an existing firm.

Gloria wants to turn her sole proprietorship into a corporation.Among the things that she must consider are

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

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

Which of the following statements about partnerships is false?

Which of the following is not likely to be provided by the seller of a franchise?

Karen is trying to assess whether she can start her own small business.But,as with many small businesses,money is a problem.She asks for your help.You indicate that the most likely source of money for starting up a small business is

What percentage of businesses in Canada have fewer than 100 employees?

Hector wants to buy a franchise.He has developed a list of advantages and disadvantages.Which one does not apply?

Which of the following best explains why flexibility is an important quality that an entrepreneur needs in order to be successful?

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 strengthen the case for Sophia running the business as a sole proprietorship?

Describe the role and responsibilities of the board of directors.

Which of the following questions would be LEAST helpful to ask in a newly formed business?

All of the following are common sources of equity for new ventures except

The Swiffer product line from Procter & Gamble was the result of __________ in a large firm.

A business is at its riskiest point during the start-up phase.

Why is it important to have a business plan?

Bootstrapping involves all of the following actions except

According to Industry Canada,small businesses account for over two-thirds of employment in which of the following industries?

Margaret has an opportunity to buy an existing business.She should be aware of all of the following except

If a new venture is expected to make a profit quickly,its exit costs will be lower.

In the eyes of the law,a partnership is nothing more than two or more persons working together.

The risks of starting a business from scratch are greater than the risks of buying an existing firm.

Gloria wants to turn her sole proprietorship into a corporation.Among the things that she must consider are

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