Chapter 4 Flashcards
What defines a small business in Canada?
A) Any company with fewer than 100 employees
B) A business having fewer than 50 employees
C) A privately owned corporation, partnership, or sole proprietorship
D) Any company with revenues less than $5 million
C
What is entrepreneurship?
A) The process of buying and selling businesses
B) The act of starting and running one’s own business
C) Working as a manager in a large corporation
D) Investing in stocks and bonds
b
What role do small businesses play in the Canadian economy?
A) They contribute minimally to employment
B) They are the largest employers
C) They provide about half of the private sector jobs
D) They primarily import goods and services
c
What is a new venture?
A) A business that has been operational for more than 10 years
B) A start-up business in its first few years of operation
C) An established business undergoing a major overhaul
D) A multinational corporation expanding into new markets
b
What are the characteristics of entrepreneurial personalities?
A) Risk-averse and dependent
B) Innovative, risk-taking, and proactive
C) Prefer stable and predictable work environments
D) Focus on short-term goals
b
What is one of the main reasons small businesses fail?
A) Over-diversification
B) Poor location and poor internet presence
C) Excessive funding
D) Lack of a clear business plan
d
What is the primary advantage of buying a franchise?
A) Complete creative control
B) High investment return guarantee
C) Built-in business model and brand recognition
D) No initial investment is required
c
Which legal form of business ownership involves a single owner?
A) Partnership
B) Corporation
C) Cooperative
D) Sole proprietorship
d
What is a major challenge faced by new entrepreneurs?
A) Too much governmental support
B) Accessing sufficient capital to start and grow the business
C) Lack of available business ideas
D) Low competition in most sectors
b
Which statement best describes intrapreneurs?
A) They invest in new businesses.
B) They manage teams within large companies.
C) They are employees who behave like entrepreneurs within a company.
D) They always start their own business outside of corporate structures
c
Which factor is least important when defining a small business?
A) Number of employees
B) Sales revenue
C) Ownership structure
D) Company location
D
The entrepreneurial process excludes which of the following stages?
A) Opportunity recognition
B) Resource mobilization
C) Market domination
D) Venture launch
C
What is NOT considered a key characteristic of entrepreneurial personalities?
A) Risk aversion
B) Innovativeness
C) Proactiveness
D) Visionary outlook
A
Legal organization forms for small businesses do NOT include:
A) Sole proprietorship
B) Public corporation
C) Partnership
D) Cooperative
b
In the context of new ventures, market analysis is least likely to focus on:
A) Identifying customer demographics
B) Assessing the regulatory environment
C) Analyzing competitor price strategies
D) Estimating the physical size of the market
d
