Chapter 1

Question 1

1) The growth of small businesses in Canada has consistently:

A) fallen short of the growth of larger organizations in Canada.

B) been centred in the Maritime Provinces.

C) been a matter of frustration for Canadian bankers.

D) surpassed the growth of the Canadian economy as a whole.

Answer 1

D) surpassed the growth of the Canadian economy as a whole

Question 2

2) The goal of social entrepreneurs is to:

A) primarily earn a profit without hurting their customers’ feelings.

B) create a workplace environment that is friendly and caring.

C) have the freedom that comes by not being an employee.

D) create social change.

Answer 2

D) create social change.

Question 3

3) Determining the number of new small businesses that are established each year:

A) is a straightforward process of examining new business registration records.

B) is not an interesting statistic.

C) is a matter of reviewing new business listing in the Canada.411 website.

D) has proved to be difficult if not impossible.

Answer 3

D) has proved to be difficult if not impossible.

Question 4

4) Today, small business owners are viewed:

A) without much respect.

B) very positively.

C) with suspicion.

D) as people who are usually unemployable.

Answer 4

B) very positively.

Question 5

5) The number of small business-related courses at Canadian colleges and universities have \_\_\_\_\_\_\_\_ in the past few years.
A) remained the same 
B) risen dramatically 
C) declined
D) risen slightly

Answer 5

B) risen dramatically

Question 6

6) The majority of small business owners are:
A) employed elsewhere while running the small business.
B) single parents.
C) former executives in businesses in the same industry as their small business.
D) the managers of their business.

Answer 6

D) the managers of their business.

Question 7

7) The BDC provides:
A) access to customer credit reports for small businesses before they extend credit.
B) funding for all small Canadian-owned start-up businesses.
C) management support for small businesses in the manufacturing industry.
D) programs for small businesses that satisfy certain criteria.

Answer 7

D) programs for small businesses that satisfy certain criteria.

Question 8

8) Operating profit of $300,000:
A) can rarely be sustained by small businesses in Canada.
B) usually ensures that a small business can obtain bank financing.
C) is a cut-off point for the small business deduction.
D) is considered a goal for start-ups to achieve in their first 5 years of operations.

Answer 8

C) is a cut-off point for the small business deduction.

Question 9

9) Microbusinesses refer to:
A) businesses that have fewer than five employees.
B) businesses that operate in the computer industry.
C) totally paperless businesses.
D) retail businesses with only one location.

Answer 9

A) businesses that have fewer than five employees

Question 10

10) Senior entrepreneurs:
A) is a small and stable component of Canadian small businesses.
B) are rarely successful in their business venture.
C) refers to senior citizens who own a business.
D) refer to entrepreneurs who have owned their successful business for many years.

Answer 10

C) refers to senior citizens who own a business.

Question 11

11) Canadian small business activity is more dominant:
A) in locations populated primarily by senior citizens.
B) in sectors that are not capital intensive.
C) in areas where commercial rental rates are lower than the national average.
D) in the same sectors as Canadian large businesses.

Answer 11

B) in sectors that are not capital intensive.

Question 12

12) The location of the most rapid growth in self-employment:
A) has been in Ontario and Alberta for the past 10 years.
B) is of little interest to motivated new small business owners.
C) is expected to decline rapidly in the next few years.
D) has been impossible to determine.

Answer 12

A) has been in Ontario and Alberta for the past 10 years.

Question 13

13) Men and women entrepreneurs tend to:
A) have gender-specific backgrounds.
B) work the same number of hours in their businesses.
C) start their businesses at roughly the same age.
D) have similar backgrounds.

Answer 13

D) have similar backgrounds.

Question 14

14) Almost \_\_\_\_\_\_\_\_ percent of Canadian University students believe they will one day become an entrepreneur.
A) 40 
B) 30 
C) 20 
D) 50

Answer 14

D) 50

Question 15

15) The majority of innovations and inventions that society benefits from today:
A) were developed in University research labs.
B) were developed in large businesses with significant research funding.
C) have been imported from countries with strong research centres.
D) were the responsibility of individuals in small businesses.

Answer 15

D) were the responsibility of individuals in small businesses.

Question 16

16) Traditional thinking has been that:
A) the larger the organization, the greater its rate of growth.
B) the larger the organization, the greater the opportunity to be more productive and profitable.
C) the larger the organization, the more likely it is to dominate innovation in its industry.
D) the larger the organization, the less likely it is to succeed.

Answer 16

B) the larger the organization, the greater the opportunity to be more productive and profitable.

Question 17

17) Small businesses are generally able to respond:
A) to changes in the economy less quickly than large businesses.
B) without any long-term impact on large business innovation.
C) to changes in competition at the same speed as large businesses.
D) to changes in government policies more quickly than large businesses.

Answer 17

D) to changes in government policies more quickly than large businesses.

Question 18

18) Small businesses contribute to the communities in which they operate in non-business ways: A) because owners of small businesses often are driven by a desire to be liked.
B) on a more limited basis than large corporations.
C) if they are asked to do so.
D) to a greater extent than employees of a large corporation might do.

Answer 18

D) to a greater extent than employees of a large corporation might do.

Question 19

19) The current period of rapid change:
A) is not significant.
B) is expected to continue.
C) is only imaginary and doesn’t stand up to close scrutiny.
D) is generally believed to be almost finished.

Answer 19

B) is expected to continue.

Question 20

20) Computers allow the entrepreneur to:
A) evade charging sales tax for their products.
B) process more transactions than larger businesses.
C) manage large amounts of information as effectively as larger businesses.
D) provide customers with more attractive receipts.

Answer 20

C) manage large amounts of information as effectively as larger businesses.

Question 21

21) The small business competitive environment has been mostly affected by:
A) new product development and foreign currency rates of exchange.
B) better educated small business owners and free trade agreements.
C) increasing fashion demands and the shrinkage of the middle class.
D) the globalization of markets and big business’s response to small business.

Answer 21

D) the globalization of markets and big business’s response to small business.

Question 22

22) It is generally felt that government regulation:
A) puts the small businesses at a competitive disadvantage to large businesses.
B) protects society’s interests.
C) cannot be simplified.
D) is an equal burden to most businesses regardless of their size.

Answer 22

A) puts the small businesses at a competitive