Question 1

Explain the role of a corporation's board of directors.

Accepted Answer

The board of directors is responsible for communicating with shareholders and other stakeholders and for setting financial policy on issues such as dividends, major spending, and executive compensation. The board is legally responsible and accountable for corporate actions.

Question 2

Shareholders are ________ of a company and profits are distributed among shareholders in the form of ________.

Accepted Answer

A)  owners; proxies 
B)  owners; products 
C)  managers; proxies 
D)  owners; dividends 
E)  managers; profit sharing 
A)  owners; proxies 
B)  owners; products 
C)  managers; proxies 
D)  owners; dividends 
E)  managers; profit sharing D

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

Low start-up costs and simplicity of operations are among the main advantages of

Accepted Answer

A)  a sole proprietorship. 
B)  selling shares. 
C)  incorporating. 
D)  a co-operative. 
E)  none of these. 
A)  a sole proprietorship. 
B)  selling shares. 
C)  incorporating. 
D)  a co-operative. 
E)  none of these.

Question 5

Identify the four major forms of legal organization for business firms. List two advantages and two disadvantages of each.

Accepted Answer

- Sole proprietorship - freedom, low sta

Question 6

Entrepreneurs often have more than one goal for starting a business and becoming self-employed. Which of the following reasons is probably the least common goal of entrepreneurs?

Accepted Answer

A)  To seek independence and be their own boss 
B)  To earn a comfortable living for a period of time 
C)  To grow and expand a current business 
D)  To meet community or social obligations 
E)  To provide for their financial needs 
A)  To seek independence and be their own boss 
B)  To earn a comfortable living for a period of time 
C)  To grow and expand a current business 
D)  To meet community or social obligations 
E)  To provide for their financial needs

Question 7

According to Industry Canada, small businesses account for over two thirds of employment in all of the following except

Accepted Answer

A)  other services. 
B)  construction. 
C)  accommodation and food. 
D)  manufacturing. 
E)  non-institutional health care. 
A)  other services. 
B)  construction. 
C)  accommodation and food. 
D)  manufacturing. 
E)  non-institutional health care.

Question 8

A small business is an owner-managed business with less than 100 employees.

Accepted Answer

A) True 
 B)False

Question 9

How are intrapreneurs different from entrepreneurs?

Accepted Answer

A)  The former are women and the latter are men. 
B)  The former are older than the latter. 
C)  The former work within an existing business while the latter start their own business. 
D)  The former earn less money than the latter. 
E)  There is not difference between the two terms. 
A)  The former are women and the latter are men. 
B)  The former are older than the latter. 
C)  The former work within an existing business while the latter start their own business. 
D)  The former earn less money than the latter. 
E)  There is not difference between the two terms.

Question 10

Identify the four major factors that contribute to small business success.

Accepted Answer

The four factors are hard work, drive, a

Question 11

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 12

A major disadvantage of the sole proprietorship is the

Accepted Answer

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

Question 13

Ann and David want to form a partnership. They should consider all of the following except

Accepted Answer

A)  possibility of disagreement. 
B)  unlimited liability. 
C)  ease of setting up a partnership. 
D)  the combined talents of both partners. 
E)  ease in transferring ownership. 
A)  possibility of disagreement. 
B)  unlimited liability. 
C)  ease of setting up a partnership. 
D)  the combined talents of both partners. 
E)  ease in transferring ownership.

Question 14

Trade credit is

Accepted Answer

A)  the selling of bonds or debentures. 
B)  reinvested in the enterprise. 
C)  paid to the owners in the form of dividends. 
D)  derived from funds generated from the operation of the business. 
E)  delayed payment terms offered by suppliers. 
A)  the selling of bonds or debentures. 
B)  reinvested in the enterprise. 
C)  paid to the owners in the form of dividends. 
D)  derived from funds generated from the operation of the business. 
E)  delayed payment terms offered by suppliers.

Question 15

An entrepreneur, Christina Rossini, is planning to open a small chain of 4 to 6 pizza stores under the brand name "Redenda Pizza." The name comes from combining the first names of the entrepreneur's grandparents. Christina wants to have a competitive advantage by offering innovative and distinct specialty pizzas and by offering the freshest ingredients. However, she is concerned that without proper planning, her venture will not be successful. Answers to which of the following questions would be least relevant to determining whether Christina has located a good opportunity in starting Redenda Pizza?

Accepted Answer

A)  Are there other pizza restaurants in the immediate vicinity of the planned location? 
B)  Is the business of other pizza restaurants in the city growing? 
C)  Does the planned location of the restaurant have competitive rent? 
D)  Will Redenda Pizza offer unique ingredients in its food offerings? 
E)  Would Christina bring unique talents and ideas to a restaurant business? 
A)  Are there other pizza restaurants in the immediate vicinity of the planned location? 
B)  Is the business of other pizza restaurants in the city growing? 
C)  Does the planned location of the restaurant have competitive rent? 
D)  Will Redenda Pizza offer unique ingredients in its food offerings? 
E)  Would Christina bring unique talents and ideas to a restaurant business?

Question 16

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

Accepted Answer

The three basic strategies are

Question 17

A study conducted by CIBC found that small businesses with above-average growth rates were run by owners with more formal education.

Accepted Answer

A) True 
 B)False

Question 18

If sole proprietor Tom decided to merge his business with that of Cindy, another sole proprietor, a ________ would result.

Accepted Answer

A)  partnership 
B)  T-4A special corporation 
C)  publicly-traded corporation 
D)  dual proprietorship 
E)  co-operative 
A)  partnership 
B)  T-4A special corporation 
C)  publicly-traded corporation 
D)  dual proprietorship 
E)  co-operative

Question 19

It is important to assess the "fit" between the various elements in the entrepreneurial process at the outset and then stick with that setup as the business grows.

Accepted Answer

A) True 
 B)False

Question 20

In a franchise agreement, the ________ is purchasing the right to sell the products of the ________.

Accepted Answer

A)  franchisee; franchiser 
B)  franchiser; parent company 
C)  franchiser; franchisee 
D)  pigeon; shyster 
E)  subleaser; leaser 
A)  franchisee; franchiser 
B)  franchiser; parent company 
C)  franchiser; franchisee 
D)  pigeon; shyster 
E)  subleaser; leaser

Explain the role of a corporation's board of directors.

Shareholders are of a company and profits are distributed among shareholders in the form of .

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

Low start-up costs and simplicity of operations are among the main advantages of

Identify the four major forms of legal organization for business firms. List two advantages and two disadvantages of each.

Entrepreneurs often have more than one goal for starting a business and becoming self-employed. Which of the following reasons is probably the least common goal of entrepreneurs?

According to Industry Canada, small businesses account for over two thirds of employment in all of the following except

A small business is an owner-managed business with less than 100 employees.

How are intrapreneurs different from entrepreneurs?

Identify the four major factors that contribute to small business success.

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

A major disadvantage of the sole proprietorship is the

Ann and David want to form a partnership. They should consider all of the following except

Trade credit is

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

A study conducted by CIBC found that small businesses with above-average growth rates were run by owners with more formal education.

If sole proprietor Tom decided to merge his business with that of Cindy, another sole proprietor, a ________ would result.

It is important to assess the "fit" between the various elements in the entrepreneurial process at the outset and then stick with that setup as the business grows.

In a franchise agreement, the is purchasing the right to sell the products of the .

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, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

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

Explain the role of a corporation's board of directors.

Shareholders are ________ of a company and profits are distributed among shareholders in the form of ________.

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

Low start-up costs and simplicity of operations are among the main advantages of

Identify the four major forms of legal organization for business firms. List two advantages and two disadvantages of each.

Entrepreneurs often have more than one goal for starting a business and becoming self-employed. Which of the following reasons is probably the least common goal of entrepreneurs?

According to Industry Canada, small businesses account for over two thirds of employment in all of the following except

A small business is an owner-managed business with less than 100 employees.

How are intrapreneurs different from entrepreneurs?

Identify the four major factors that contribute to small business success.

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

A major disadvantage of the sole proprietorship is the

Ann and David want to form a partnership. They should consider all of the following except

Trade credit is

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

A study conducted by CIBC found that small businesses with above-average growth rates were run by owners with more formal education.

If sole proprietor Tom decided to merge his business with that of Cindy, another sole proprietor, a ________ would result.

It is important to assess the "fit" between the various elements in the entrepreneurial process at the outset and then stick with that setup as the business grows.

In a franchise agreement, the ________ is purchasing the right to sell the products of the ________.

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, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

Shareholders are of a company and profits are distributed among shareholders in the form of .

In a franchise agreement, the is purchasing the right to sell the products of the .