Question 1

It is important for an entrepreneur to be highly energetic.

Accepted Answer

A) True 
 B)False

Question 2

When comparing various types of small businesses,the firms that are easiest to start tend to be those that:

Accepted Answer

A)  offer the greatest security.
B)  involve professional services,such as dentistry or veterinary medicine.
C)  have the highest failure rates.
D)  have the greatest prospect of long-term growth.E) All of the above
F) A) and B)

Question 3

A detailed written statement that describes the nature of the business,the target market,the firm's competitive advantages,as well as the resources and qualifications of the owner(s) is a(n) :

Accepted Answer

A)  professional action plan.
B)  profit and loss statement.
C)  entrepreneurial mission statement.
D)  business plan.E) A) and D)
F) A) and C)

Question 4

Many small business owners report that the most important assistance they needed in starting and managing their business involved accounting.

Accepted Answer

A) True 
 B)False

Question 5

The easiest businesses to start also have the least growth potential and the greatest failure rate.

Accepted Answer

A) True 
 B)False

Question 6

Business incubators are government-funded facilities intended to:

Accepted Answer

A)  offer startup firms low-cost office space and basic business services.
B)  help rebuild the nation's infrastructure.
C)  provide health care benefits for small business owners and their families.
D)  assist foreign investors to identify business opportunities in Canada.E) A) and D)
F) None of the above

Question 7

About 98% of businesses in Canada have fewer than 100 employees.

Accepted Answer

A) True 
 B)False

Question 8

An entrepreneur:

Accepted Answer

A)  manages businesses for others.
B)  accepts the risk of starting and running a business.
C)  manages businesses that operate in multiple countries.
D)  has a controlling interest in the ownership of a corporation.E) A) and B)
F) C) and D)

Question 9

If you have managerial skills and leadership ability,you also possess the personality to be an entrepreneur.

Accepted Answer

A) True 
 B)False

Question 10

Kathy,like many others in her extended family,works in the furniture store started by her grandfather.As the business has expanded,she has been frustrated because:

Accepted Answer

A)  suppliers are reluctant to do business with a family-run business.
B)  profit margins have increased on household furnishings.
C)  of the accounting rules that apply to family businesses.
D)  you can't fire family.E) A) and D)
F) C) and D)

Question 11

Successful entrepreneurial teams struggle to blend creative business skills with production and marketing skills.

Accepted Answer

A) True 
 B)False

Question 12

One advantage enjoyed by small businesses in international markets is that overseas buyers enjoy dealing with individuals rather than large corporate bureaucracies.

Accepted Answer

A) True 
 B)False

Question 13

Entrepreneurs often discover that there are many legal and financial issues involved in starting their business.The best way for the small business owner to resolve these issues and protect the firm's resources is:

Accepted Answer

A)  defer making decisions regarding these issues until the company is bigger.
B)  to hire a full time lawyer and accountant immediately.
C)  seek expert guidance and assistance.
D)  for the owner(s) to trust their common sense.E) A) and B)
F) A) and C)

Question 14

When writing a business plan,prospective entrepreneurs should remember to omit details regarding their experience and education since investors are only interested in the proposed business.

Accepted Answer

A) True 
 B)False

Question 15

A good business plan describes the nature of the proposed business,the target market,the competitive advantages,and the qualifications of the owner(s).

Accepted Answer

A) True 
 B)False

Question 16

Lamont wants to improve his chances to be a successful entrepreneur and so he has written a business plan.One advantage of developing this plan is that it:

Accepted Answer

A)  will enable him to switch from a sole proprietorship to a corporation without any further paperwork.
B)  meets federal reporting requirements of Revenue Canada.
C)  forces Lamont to think carefully about all aspects of his planned business.
D)  ensures financing will be available from the venture capitalists.E) B) and C)
F) None of the above

Question 17

Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.

Accepted Answer

A) True 
 B)False

Question 18

There are about 1,500 business incubators in the world.

Accepted Answer

A) True 
 B)False

Question 19

Although all the functions of business in a small-business setting are important,which of the following are the primary concerns when you start your own business?

Accepted Answer

A)  planning and accounting
B)  planning and managing your employees
C)  planning and financing
D)  financing and knowing your customersE) B) and C)
F) None of the above

Question 20

Individuals motivated to start a home-based business allowing them to balance the demands of business and family are called:

Accepted Answer

A)  home workers.
B)  entremanures.
C)  micropreneurs.
D)  intrapreneurs.E) A) and D)
F) A) and C)

Exam 7: Entrepreneurship and Starting a Small Business

Many small business owners report that the most important assistance they needed in starting and managing their business involved accounting.

Correct AnswerverifiedShow Answer

When writing a business plan,prospective entrepreneurs should remember to omit details regarding their experience and education since investors are only interested in the proposed business.

Correct AnswerverifiedShow Answer

When comparing various types of small businesses,the firms that are easiest to start tend to be those that:

Correct AnswerverifiedShow Answer

Successful entrepreneurial teams struggle to blend creative business skills with production and marketing skills.

Correct AnswerverifiedShow Answer

An entrepreneur:

Correct AnswerverifiedShow Answer

A good business plan describes the nature of the proposed business,the target market,the competitive advantages,and the qualifications of the owner(s).

Correct AnswerverifiedShow Answer

Kathy,like many others in her extended family,works in the furniture store started by her grandfather.As the business has expanded,she has been frustrated because:

Correct AnswerverifiedShow Answer

Individuals motivated to start a home-based business allowing them to balance the demands of business and family are called:

Correct AnswerverifiedShow Answer

Although all the functions of business in a small-business setting are important,which of the following are the primary concerns when you start your own business?

Correct AnswerverifiedShow Answer

Business incubators are government-funded facilities intended to:

Correct AnswerverifiedShow Answer

A detailed written statement that describes the nature of the business,the target market,the firm's competitive advantages,as well as the resources and qualifications of the owner(s) is a(n) :

Correct AnswerverifiedShow Answer

Lamont wants to improve his chances to be a successful entrepreneur and so he has written a business plan.One advantage of developing this plan is that it:

Correct AnswerverifiedShow Answer

One advantage enjoyed by small businesses in international markets is that overseas buyers enjoy dealing with individuals rather than large corporate bureaucracies.

Correct AnswerverifiedShow Answer

It is important for an entrepreneur to be highly energetic.

Correct AnswerverifiedShow Answer

About 98% of businesses in Canada have fewer than 100 employees.

Correct AnswerverifiedShow Answer

If you have managerial skills and leadership ability,you also possess the personality to be an entrepreneur.

Correct AnswerverifiedShow Answer

Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.

Correct AnswerverifiedShow Answer

There are about 1,500 business incubators in the world.

Correct AnswerverifiedShow Answer

Entrepreneurs often discover that there are many legal and financial issues involved in starting their business.The best way for the small business owner to resolve these issues and protect the firm's resources is:

Correct AnswerverifiedShow Answer

The easiest businesses to start also have the least growth potential and the greatest failure rate.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified