Question 1

Which of the following is the main disadvantage of a co-operative?

Accepted Answer

A)  High prices 
B)  Each member only gets one vote 
C)  High tax rates 
D)  Low surplus distribution rates 
E)  Difficult to attract equity investment 
A)  High prices 
B)  Each member only gets one vote 
C)  High tax rates 
D)  Low surplus distribution rates 
E)  Difficult to attract equity investment E

Question 2

Explain why double taxation is considered to be a disadvantage to a corporate form of organization.Explain how double taxation occurs.

Accepted Answer

- a corporation must pay income taxes on its profits,and then shareholders must pay income taxes on their dividends received 
- from the shareholder's point of view,this procedure amounts to double taxation of the corporation's profits
 - the profits of sole proprietorships and partnerships are only taxed once since profits are treated as the owner's personal income

Question 3

Over the past two decades,the growth in the number of male entrepreneurs has exceed that of female entrepreneurs.

Accepted Answer

A) True 
 B)False  False

Question 4

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 argument that Marco and Sophia should form a partnership?

Accepted Answer

A)  They have different personalities. 
B)  They have known each other for many years. 
C)  They have conflicting ideas about what would make a dry-cleaning business successful. 
D)  Sophia has experience in finance but not in equipment repair. 
E)  Marco has experience in dry-cleaning but he is not a good administrator. 
A)  They have different personalities. 
B)  They have known each other for many years. 
C)  They have conflicting ideas about what would make a dry-cleaning business successful. 
D)  Sophia has experience in finance but not in equipment repair. 
E)  Marco has experience in dry-cleaning but he is not a good administrator.

Question 5

Harold's father owns a plumbing business,which Harold will likely take over.However,Harold needs to know the problems that beset family businesses.Which of the following is not a problem in a family business?

Accepted Answer

A)  Untrained and uneducated family members as personnel 
B)  Failure to respond to changing market conditions 
C)  Choosing an appropriate successor 
D)  Consistent under-financing 
E)  Disagreement among family members about the future of the business 
A)  Untrained and uneducated family members as personnel 
B)  Failure to respond to changing market conditions 
C)  Choosing an appropriate successor 
D)  Consistent under-financing 
E)  Disagreement among family members about the future of the business

Question 6

Which of the following is not one of the general factors that contribute to small business failure?

Accepted Answer

A)  Managerial incompetence or inexperience 
B)  Neglect 
C)  Bad luck 
D)  Weak control systems 
E)  Insufficient capital 
A)  Managerial incompetence or inexperience 
B)  Neglect 
C)  Bad luck 
D)  Weak control systems 
E)  Insufficient capital

Question 7

Self-employed Canadians account for ____ percent of the workforce.

Accepted Answer

A)  5 
B)  11 
C)  16 
D)  23 
E)  29 
A)  5 
B)  11 
C)  16 
D)  23 
E)  29

Question 8

Why is unlimited liability a significant disadvantage to both the sole proprietorship and general partnership forms of organization?

Accepted Answer

- sole proprietors are in a high-risk si

Question 9

A ________ typically includes a company description,product description,marketing analysis and plan,operating plan,financial plan and other supporting information.

Accepted Answer

A)  bank loan application 
B)  business plan 
C)  tax application 
D)  partnership agreement 
E)  grant application 
A)  bank loan application 
B)  business plan 
C)  tax application 
D)  partnership agreement 
E)  grant application

Question 10

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 11

All of the following are reasons for success of small businesses except

Accepted Answer

A)  market demand for the product. 
B)  money. 
C)  luck. 
D)  managerial competence. 
E)  hard work. 
A)  market demand for the product. 
B)  money. 
C)  luck. 
D)  managerial competence. 
E)  hard work.

Question 12

The textbook defines a small business as an owner-managed business with fewer 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 13

What does it mean to say that shareholders in a corporation have limited liability?

Accepted Answer

- shareholders can o

Question 14

What factors in the broader environment influence the entrepreneurial process?

Accepted Answer

- social factors 
-

Question 15

The New Business Group at Hewlett-Packard is a good illustration of intrapreneuring in action.

Accepted Answer

A) True 
 B)False

Question 16

Entrepreneurship is restricted to small firms.

Accepted Answer

A) True 
 B)False

Question 17

The size of a partnership is

Accepted Answer

A)  limited to a maximum of $100 million in annual sales. 
B)  there is no limit on the size of a partnership. 
C)  limited to a maximum of 100 partners. 
D)  limited to a maximum of 1000 employees. 
E)  limited to a maximum of $10 million in annual sales. 
A)  limited to a maximum of $100 million in annual sales. 
B)  there is no limit on the size of a partnership. 
C)  limited to a maximum of 100 partners. 
D)  limited to a maximum of 1000 employees. 
E)  limited to a maximum of $10 million in annual sales.

Question 18

Bill is starting up a new business.In order to raise the capital needed for the business,Bill has sold shares of his company to a few close relatives.This type of structure is known as a

Accepted Answer

A)  sole proprietorship. 
B)  private corporation. 
C)  macroenterprise. 
D)  public enterprise. 
E)  public corporation. 
A)  sole proprietorship. 
B)  private corporation. 
C)  macroenterprise. 
D)  public enterprise. 
E)  public corporation.

Question 19

Describe some key characteristics of small business in Canada.

Accepted Answer

Small businesses constitute about 98 per

Question 20

From 2001 to 2010,small businesses created ____ percent of all the jobs in Canada.

Accepted Answer

A)  10 
B)  18 
C)  31 
D)  47 
E)  56 
A)  10 
B)  18 
C)  31 
D)  47 
E)  56

Which of the following is the main disadvantage of a co-operative?

Explain why double taxation is considered to be a disadvantage to a corporate form of organization.Explain how double taxation occurs.

Over the past two decades,the growth in the number of male entrepreneurs has exceed that of female entrepreneurs.

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 argument that Marco and Sophia should form a partnership?

Harold's father owns a plumbing business,which Harold will likely take over.However,Harold needs to know the problems that beset family businesses.Which of the following is not a problem in a family business?

Which of the following is not one of the general factors that contribute to small business failure?

Self-employed Canadians account for ____ percent of the workforce.

Why is unlimited liability a significant disadvantage to both the sole proprietorship and general partnership forms of organization?

A ________ typically includes a company description,product description,marketing analysis and plan,operating plan,financial plan and other supporting information.

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

All of the following are reasons for success of small businesses except

The textbook defines a small business as an owner-managed business with fewer than ________ employees.

What does it mean to say that shareholders in a corporation have limited liability?

What factors in the broader environment influence the entrepreneurial process?

The New Business Group at Hewlett-Packard is a good illustration of intrapreneuring in action.

Entrepreneurship is restricted to small firms.

The size of a partnership is

Bill is starting up a new business.In order to raise the capital needed for the business,Bill has sold shares of his company to a few close relatives.This type of structure is known as a

Describe some key characteristics of small business in Canada.

From 2001 to 2010,small businesses created ____ percent of all the jobs in Canada.

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 is the main disadvantage of a co-operative?

Explain why double taxation is considered to be a disadvantage to a corporate form of organization.Explain how double taxation occurs.

Over the past two decades,the growth in the number of male entrepreneurs has exceed that of female entrepreneurs.

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 argument that Marco and Sophia should form a partnership?

Harold's father owns a plumbing business,which Harold will likely take over.However,Harold needs to know the problems that beset family businesses.Which of the following is not a problem in a family business?

Which of the following is not one of the general factors that contribute to small business failure?

Self-employed Canadians account for ____ percent of the workforce.

Why is unlimited liability a significant disadvantage to both the sole proprietorship and general partnership forms of organization?

A ________ typically includes a company description,product description,marketing analysis and plan,operating plan,financial plan and other supporting information.

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

All of the following are reasons for success of small businesses except

The textbook defines a small business as an owner-managed business with fewer than ________ employees.

What does it mean to say that shareholders in a corporation have limited liability?

What factors in the broader environment influence the entrepreneurial process?

The New Business Group at Hewlett-Packard is a good illustration of intrapreneuring in action.

Entrepreneurship is restricted to small firms.

The size of a partnership is

Bill is starting up a new business.In order to raise the capital needed for the business,Bill has sold shares of his company to a few close relatives.This type of structure is known as a

Describe some key characteristics of small business in Canada.

From 2001 to 2010,small businesses created ____ percent of all the jobs in Canada.

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