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

Should government be involved in giving assistance to small businesses?

Robert wants to start a new business. At this point, he needs to ask himself all of the following questions except What is my competitive advantage? How much will the customer buy? What legal form should the business take? What value is created or added to for the customer? What is the marketability of this idea?

What was the largest corporation in Canada in 2012, as measured by sales revenue? Imperial Oil Manulife Financial Corp. Bank of Nova Scotia General Motors Canada Suncor Energy

There are two basic types of partners: ________ and _________. dormant; active key; secondary secret; open general; limited primary; secondary

The size of a partnership is limited to a maximum of $100 million in annual sales. unlimited. limited to a maximum of 100 partners. limited to a maximum of 1000 employees. limited to a maximum of $10 million in annual sales.

The majority of businesses in Canada have no employees (just the owner).

A business is normally at its riskiest point during the ________ phase. preliminary growth start-up maturity conception

Which of the following is correct with regard to small business? Various measures might be used to define a small business, including the number of people the business employs, the company's sales revenue, the size of the investment required, or the type of ownership structure the business has. Since the Business Register tracks businesses and the Labour Force Survey tracks individuals, these sources of information are not useful in defining the term "small business." To be included in the Business Register, a business must have at least five paid employees. In the Business Register, a goods-producing company is considered small if it has fewer than 500 employees, while a service-producing business is considered small if it has fewer than 100 employees. All of these are correct.

Trade credit is the selling of bonds or debentures. reinvested in the enterprise. paid to the owners in the form of dividends. derived from funds generated from the operation of the business. delayed payment terms offered by suppliers.

A financial forecast includes all of the following items except a cash budget. an estimate of start-up costs. an income statement. a listing of potential customers. a balance sheet.

Ann and David want to form a partnership. They should consider all of the following except possibility of disagreement. unlimited liability. ease of setting up a partnership. the combined talents of both partners. ease in transferring ownership.

The purpose of a cooperative is as a benevolent association designed to help out its members in times of need. as an association only for farmers. to benefit its owners in the form of reduced prices and/or distribution of surplus at year end. to remain small so that they can help all their members on an individual basis. to buy fertilizer at reduced prices because of volume buying on the part of its members.

Describe private investors (angels) and venture capitalists.

Voting rights in a cooperative are not restricted just to members. required before one can buy anything from a cooperative. the same as those found in a corporation, that is, the more one owns or contributes the more votes one has. nonexistent; there are no votes taken in the running of a cooperative. one vote per member regardless of the amount owned or contributed.

Margaret has an opportunity to buy an existing business. She should be knowledgeable about all of the following issues except the location of the business. legal form of the business. difficulty in determining an appropriate price for the business. incomplete knowledge of the state of the business. the reputation of the business.

Which of the following statements is accurate? Love money is a form of debt financing. Borrowing money reduces the potential for higher returns when a business is performing well. Debt financing refers to money invested by the owner in the company. Banks are typically risk averse. Suppliers typically provide long term-financing.

Describe some key characteristics of small business in Canada.

What are the three basic strategies for becoming a business owner?

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

The most important reason that women give for starting their own business is to gain control of their schedules.