Question 1

When buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be an inappropriate question to ask?

Accepted Answer

A)   Why are you selling?
B)   Are there any problems with the business?
C)   Is the business operating at a profit?
D)   What are you going to do with the down payment?

Question 2

In buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be the most appropriate question to ask?

Accepted Answer

A)   How are you going to use the money you receive for the business?
B)   Are any of the employees creating problems?
C)   Who loaned you the initial investment?
D)   Are there any problems with the business?

Question 3

Which of the following is a one-to-three page summary of the business plan?

Accepted Answer

A)   executive summary
B)   corporate summary
C)   shareholders summary
D)   directors summary

Question 4

What does the Business Development Bank of Canada offer?

Accepted Answer

A)   the elimination of sales and employee taxation for the first three years of operation
B)   employee recruiting, hiring, and firing
C)   bank loans
D)   entrepreneurial ideas

Question 5

Which of the following best describes venture capital?

Accepted Answer

A)   It includes all the money the owner of the business invests in his or her new enterprise.
B)   It is financing obtained from investment companies that specialize in financing small, high-growth companies.
C)   It is another name for the principal that a business borrows from a bank.
D)   It is borrowed money invested in start-up businesses and provided by the Business Development Bank of Canada.

Question 6

Which of the following two forms of business financing describe borrowed funds and ownership funds, respectively?

Accepted Answer

A)   debt; equity
B)   credit; leverage
C)   equity; debt
D)   equity; leverage

Question 7

Which of the following is at the core of most business failures?

Accepted Answer

A)   too much inventory
B)   poor cash flow
C)   low interest rate
D)   inadequate planning

Question 8

According to Industry Canada small businesses employ what percentage of the workforce?

Accepted Answer

A)   33
B)   40
C)   48
D)   61

Question 9

One way for the owner of a small business to keep in touch with all aspects of the business is to have a solid business plan.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following describes the trend in entrepreneurship in recent years?

Accepted Answer

A)   The number of people starting businesses has remained the same.
B)   The number of people starting businesses has increased.
C)   The number of people starting businesses has slowed.
D)   The number of people starting businesses has decreased.

Question 11

Which of the following are entrepreneurs who start a series of companies?

Accepted Answer

A)   multiventurists
B)   multifaceted venturists
C)   multipreneurs
D)   intrapreneurs

Question 12

Entrepreneurs are less likely to accept the status quo and generally take a longer-term view than small-business owners.

Accepted Answer

A) True 
 B)False

Question 13

What are the two types of financing available to entrepreneurs?

Accepted Answer

equity and...

Question 14

How are baby boomers expected to affect the economy in the future?

Accepted Answer

A)   They will have no noticeable effect.
B)   They will spend money to make their lives more comfortable.
C)   They will create a drag on the economy.
D)   They will spend less and contribute to an economic decline.

Question 15

What does the hopeful entrepreneur do once he or she has finished the business plan?

Accepted Answer

The answer of What does the hopeful entrepreneur do once...

Question 16

How are export management companies characterized?

Accepted Answer

A)   They handle all aspects of exporting, for a percentage fee of the business.
B)   They form joint ventures with small exporting businesses.
C)   They work on flat fees per month.
D)   They do only consulting work.

Question 17

Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. Early in the development of this high-growth company, Arnold and Bradford attracted a group of investors who provided them with money needed to acquire other Internet companies with similar missions. What is the investment group called?

Accepted Answer

A)   angel investors
B)   entrepreneurial capitalists
C)   equity entrepreneurs
D)   investment counsellors

Question 18

List the three categories of entrepreneurs.

Accepted Answer

classic entrepreneur...

Question 19

List reasons that small businesses thrive in Canada.

Accepted Answer

(1) Independence and the opportunity for...

Question 20

Which of the following is NOT a common cause of most business failures?

Accepted Answer

A)   economic factors
B)   financial causes
C)   personnel problems
D)   owner's lack of experience

Exam 6: Entrepreneurship and Small Business

Which of the following two forms of business financing describe borrowed funds and ownership funds, respectively?

Correct Answer
verified

Correct Answer
verified

Which of the following is a one-to-three page summary of the business plan?

Correct Answer
verified

How are baby boomers expected to affect the economy in the future?

Correct Answer
verified

How are export management companies characterized?

Correct Answer
verified

Entrepreneurs are less likely to accept the status quo and generally take a longer-term view than small-business owners.

Correct Answer
verified

What are the two types of financing available to entrepreneurs?

Correct Answer
verified
equity and...
View Answer

According to Industry Canada small businesses employ what percentage of the workforce?

Correct Answer
verified

What does the hopeful entrepreneur do once he or she has finished the business plan?

Correct Answer
verified

In buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be the most appropriate question to ask?

Correct Answer
verified

Which of the following is NOT a common cause of most business failures?

Correct Answer
verified

List the three categories of entrepreneurs.

Correct Answer
verified
classic entrepreneur...
View Answer

Which of the following are entrepreneurs who start a series of companies?

Correct Answer
verified

Which of the following is at the core of most business failures?

Correct Answer
verified

Which of the following describes the trend in entrepreneurship in recent years?

Correct Answer
verified

What does the Business Development Bank of Canada offer?

Correct Answer
verified

When buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be an inappropriate question to ask?

Correct Answer
verified

List reasons that small businesses thrive in Canada.

Correct Answer
verified
(1) Independence and the opportunity for...
View Answer

One way for the owner of a small business to keep in touch with all aspects of the business is to have a solid business plan.

Correct Answer
verified

Which of the following best describes venture capital?

Correct Answer
verified

Exam 6: Entrepreneurship and Small Business

Which of the following two forms of business financing describe borrowed funds and ownership funds, respectively?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a one-to-three page summary of the business plan?

Correct AnswerverifiedShow Answer

How are baby boomers expected to affect the economy in the future?

Correct AnswerverifiedShow Answer

How are export management companies characterized?

Correct AnswerverifiedShow Answer

Entrepreneurs are less likely to accept the status quo and generally take a longer-term view than small-business owners.

Correct AnswerverifiedShow Answer

What are the two types of financing available to entrepreneurs?

Correct Answerverifiedequity and...View AnswerShow Answer

According to Industry Canada small businesses employ what percentage of the workforce?

Correct AnswerverifiedShow Answer

What does the hopeful entrepreneur do once he or she has finished the business plan?

Correct AnswerverifiedShow Answer

In buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be the most appropriate question to ask?

Correct AnswerverifiedShow Answer

Which of the following is NOT a common cause of most business failures?

Correct AnswerverifiedShow Answer

List the three categories of entrepreneurs.

Correct Answerverifiedclassic entrepreneur...View AnswerShow Answer

Which of the following are entrepreneurs who start a series of companies?

Correct AnswerverifiedShow Answer

Which of the following is at the core of most business failures?

Correct AnswerverifiedShow Answer

Which of the following describes the trend in entrepreneurship in recent years?

Correct AnswerverifiedShow Answer

What does the Business Development Bank of Canada offer?

Correct AnswerverifiedShow Answer

When buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be an inappropriate question to ask?

Correct AnswerverifiedShow Answer

List reasons that small businesses thrive in Canada.

Correct Answerverified(1) Independence and the opportunity for...View AnswerShow Answer

One way for the owner of a small business to keep in touch with all aspects of the business is to have a solid business plan.

Correct AnswerverifiedShow Answer

Which of the following best describes venture capital?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
equity and...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
classic entrepreneur...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
(1) Independence and the opportunity for...
View Answer

Correct Answer
verified

Correct Answer
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