Final exam

Question 1

What are the five characteristics of entrepreneurs?

Answer 1

Confidence: an entrepreneur needs to act decisively and lead
Energy: Put in long hours
Internal Drive: control their own destiny
Vision: think strategically and creatively. Effectively manage details required to make their vision a reality
Tolerance for Risk:

Question 2

do small businesses make large or small amounts of GDP?

Answer 2

Large

Question 3

What are the five major components of a business plan?

Answer 3

Executive summary
Product description and market analysis
Marketing Plan
Operations plan
Financial projections

Question 4

What does the executive summary do?

Answer 4

Overview of why business will succeed

Question 5

what does the product description and market analysis do?

Answer 5

Description of product
why unique
what does it solve? to whom?
Market demand

Question 6

What does the marketing plan do?

Answer 6

Strategy for pricing distributing and promoting

Question 7

What does the marketing plan do?

Answer 7

Strategy for facility and personnel, and launch

Question 8

Finaincial projections

Answer 8

everything finance other than pricing.

Question 9

what does the B/C 2 B/C stand for?

Answer 9

B - business
2 - to
C - consumer

(any combo)

Question 10

What is angel investing vs venture capital?

Answer 10

VC is large and highly competitive firms to raise money fast

AI - for companies that are overlooked by banks and other stuff

Question 11

what is the fastest type of company to trade ownership?

Answer 11

corp

Question 12

Corporate (Dual) Taxation is?

Answer 12

How corporations get taxed double on things. Profit tax, then taxed as dividend income, then personal income tax

Question 13

what is the opposite of corporate (dual Taxation)?

Answer 13

Pass through taxation.

Question 14

Consumer coop?

Answer 14

Provides products or services to members

Question 15

Producer coop?

Answer 15

Markets goods or services produced by members

Question 16

Worker coop

Answer 16

provide employment and limited liability (owned and operated by employees)

Question 17

Multi stakeholder coop

Answer 17

multiple membership groups

Question 18

What is managerial accounting?

Answer 18

provides info about revenues and costs for managers?

Question 19

What is finaincial accounting

Answer 19

a uniform set of statements.

Question 20

what did the canadian GAAP do?

Answer 20

OLD Accounting rules and standards

Question 21

IFRS

Answer 21

Set of globally accepted accounting standards for public and some private companies

Question 22

Accounting standards for private enterprises ASPE

Answer 22

all the standards for canadian companies

Question 23

Statement of financial position?

Answer 23

snapshot of companies financial position

balance sheet

Question 24

Statement of comprehensive income

Answer 24

Income statement
companies earnings and costs

Question 25

Statement of cash flows

Answer 25

cash flow statement money in and out of business over a period of time.

Question 26

Balance sheet order

Answer 26

asset liability owners equity

Question 27

what are deemed long term assets?

Answer 27

ones longer then a year

Question 28

Formula for assets

Answer 28

assets = liabilities + owners equity

Question 29

what does the order of comprehensive income go?

Answer 29

Current → long term.

Question 30

what are demand deposits

Answer 30

can be withdrawn at any time

Question 31

what are time deposits

Answer 31

money invested for a certain time

Question 32

what does m1 consist of?

Answer 32

non-chequable deposits, currency, and personal and non-personal chequable accounts

Question 33

m2

Answer 33

savings accounts (time based deposits)

Question 34

m3

Answer 34

Canadian resident's foreign currency deposits and non-personal deposits non_chequable deposits

Question 35

what is open market operations? what does it do

Answer 35

bank of Canada buying securities buy - ↑ economy sell - ↓ economy

Question 36

Overnight rate is interest rate? what does it do

Answer 36

avg interest rate. higher rate lower economy

Question 37

how much does CDIC insure for non investing accounts

Answer 37

100000

Question 38

what are unsecured loans

Answer 38

no collateral

Question 39

secured loans

Answer 39

have collateral

Question 40

how many times can a company go public?

Answer 40

once

Question 41

common shares

Answer 41

more volatile then perferred

Question 42

Capital preservation methods

Answer 42

Bank accounts and Money market accounts or guaranteed investment certificates, term deposits

Question 43

investments for income

Answer 43

gov bonds, shares

Question 44

large market cap stocks are around

Answer 44

higher then 10 billion

Question 45

investments for growth

Answer 45

blue chip, foreign stocks

Question 46

diversification

Answer 46

mutual or ETF funds

Question 47

personal financing steps

Answer 47

set goals take control alternatives implement and revise

Question 48

self insurance

Answer 48

monetary fund to cover losses

Question 49

fidelity bond

Answer 49

protects business from theft

Question 50

whole LI

Answer 50

provides both protection and savings

Question 51

endowment LI

Answer 51

protection payments of stated amount after a certain amount of years