Question 1

A new firm is

Accepted Answer

A) one that has been in business for 5 years or less. 
B) one that has not yet opened for business. 
C) one with less than 10 years' experience. 
D) one that has become operational within the previous 12 months. 
E) one that opened its doors within the past 6 months. 
A) one that has been in business for 5 years or less. 
B) one that has not yet opened for business. 
C) one with less than 10 years' experience. 
D) one that has become operational within the previous 12 months. 
E) one that opened its doors within the past 6 months. D

Question 2

One popular source of equity capital is informal capital from private investors who are known as

Accepted Answer

A) private loaners. 
B) traditional lenders. 
C) pseudo loaners. 
D) off-the-books financers. 
E) angels. 
A) private loaners. 
B) traditional lenders. 
C) pseudo loaners. 
D) off-the-books financers. 
E) angels. E

Question 3

Which of the following is the most significant disadvantage of starting a business from scratch?

Accepted Answer

A) Having few employees 
B) Inability to franchise 
C) Having competition 
D) Coming up with new ideas 
E) The risk of failure 
A) Having few employees 
B) Inability to franchise 
C) Having competition 
D) Coming up with new ideas 
E) The risk of failure E

Question 4

What was the largest corporation in Canada in 2017,as measured by sales revenue?

Accepted Answer

A) Imperial Oil 
B) Manulife Financial Corp. 
C) Bank of Nova Scotia 
D) General Motors Canada 
E) Suncor Energy 
A) Imperial Oil 
B) Manulife Financial Corp. 
C) Bank of Nova Scotia 
D) General Motors Canada 
E) Suncor Energy

Question 5

Two of the major problems in family businesses are choosing and training successors and determining the direction of the firm.

Accepted Answer

A) True 
 B)False

Question 6

An estimate of how much of a product or service will be purchased by prospective customers over a specific period is which of the following?

Accepted Answer

A) Sales prognosis 
B) Sales prediction 
C) Sales forecast 
D) Sales outlook 
E) Pro forma sales 
A) Sales prognosis 
B) Sales prediction 
C) Sales forecast 
D) Sales outlook 
E) Pro forma sales

Question 7

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 8

Equity refers to the money,or capital,invested in the enterprise by individuals in return for an ownership interest.

Accepted Answer

A) True 
 B)False

Question 9

Self-employed Canadians account for about half of the total workforce.

Accepted Answer

A) True 
 B)False

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

A small business is an owner managed business with less than ________ employees.

Accepted Answer

A) 25 
B) 50 
C) 10 
D) 500 
E) 100 
A) 25 
B) 50 
C) 10 
D) 500 
E) 100

Question 12

According to Industry Canada,there are about ________ people who are "self- employed" and about ________ "business establishments."

Accepted Answer

A) 1.2 million;1.2 million 
B) 5 million;500 000 
C) 2.8 million;2.2 million 
D) 725 000;500 000 
E) 225 000;225 000 
A) 1.2 million;1.2 million 
B) 5 million;500 000 
C) 2.8 million;2.2 million 
D) 725 000;500 000 
E) 225 000;225 000

Question 13

The majority of businesses in Canada have no employees (i.e. ,the only person is the business is the owner).

Accepted Answer

A) True 
 B)False

Question 14

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 15

Describe the advantages and disadvantages of operating a business as a sole proprietorship.

Accepted Answer

The advantages of sole proprietorships i

Question 16

Sam and Nina want to start a dry-cleaning service and need to decide on the best form of business ownership,based on their respective abilities and the kind of business they want to run.They could either jointly own the business as a partnership,or one of them could own it as a sole proprietorship. Which of the following,if true,would strengthen the case for Nina running the business as a sole proprietorship?

Accepted Answer

A) Sam is experienced in dry-cleaning. 
B) Sam has a wide base of existing customer contacts. 
C) Sam is not willing to take on legal liability in the company. 
D) Nina is relatively new to the dry-cleaning business. 
E) Nina is not much of a "people person." 
A) Sam is experienced in dry-cleaning. 
B) Sam has a wide base of existing customer contacts. 
C) Sam is not willing to take on legal liability in the company. 
D) Nina is relatively new to the dry-cleaning business. 
E) Nina is not much of a "people person."

Question 17

Unlike corporations,co-operatives do not have directors and appointed officers.

Accepted Answer

A) True 
 B)False

Question 18

What is an intrapreneur?

Accepted Answer

An intrapreneur is a person wh

Question 19

What is the most important factor contributing to small business failure?

Accepted Answer

The most important f

Question 20

What is a sales forecast?

Accepted Answer

A sales forecast is an estimat

A new firm is

One popular source of equity capital is informal capital from private investors who are known as

Which of the following is the most significant disadvantage of starting a business from scratch?

What was the largest corporation in Canada in 2017,as measured by sales revenue?

Two of the major problems in family businesses are choosing and training successors and determining the direction of the firm.

An estimate of how much of a product or service will be purchased by prospective customers over a specific period is which of the following?

Bootstrapping involves all of the following actions except

Equity refers to the money,or capital,invested in the enterprise by individuals in return for an ownership interest.

Self-employed Canadians account for about half of the total workforce.

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

A small business is an owner managed business with less than ________ employees.

According to Industry Canada,there are about people who are "self- employed" and about "business establishments."

The majority of businesses in Canada have no employees (i.e. ,the only person is the business is the owner).

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

Describe the advantages and disadvantages of operating a business as a sole proprietorship.

Unlike corporations,co-operatives do not have directors and appointed officers.

What is an intrapreneur?

What is the most important factor contributing to small business failure?

What is a sales forecast?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating,satisfying,and Leading Employees

Operations Management,productivity,and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing,promoting,and Distributing Products

Money and Banking

Financial Decisions and Risk Management

Filters

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

A new firm is

One popular source of equity capital is informal capital from private investors who are known as

Which of the following is the most significant disadvantage of starting a business from scratch?

What was the largest corporation in Canada in 2017,as measured by sales revenue?

Two of the major problems in family businesses are choosing and training successors and determining the direction of the firm.

An estimate of how much of a product or service will be purchased by prospective customers over a specific period is which of the following?

Bootstrapping involves all of the following actions except

Equity refers to the money,or capital,invested in the enterprise by individuals in return for an ownership interest.

Self-employed Canadians account for about half of the total workforce.

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

A small business is an owner managed business with less than ________ employees.

According to Industry Canada,there are about ________ people who are "self- employed" and about ________ "business establishments."

The majority of businesses in Canada have no employees (i.e. ,the only person is the business is the owner).

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

Describe the advantages and disadvantages of operating a business as a sole proprietorship.

Unlike corporations,co-operatives do not have directors and appointed officers.

What is an intrapreneur?

What is the most important factor contributing to small business failure?

What is a sales forecast?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating,satisfying,and Leading Employees

Operations Management,productivity,and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing,promoting,and Distributing Products

Money and Banking

Financial Decisions and Risk Management

Filters

According to Industry Canada,there are about people who are "self- employed" and about "business establishments."