module 3 quiz Flashcards
- All of the following are characteristics of successful entrepreneurs, EXCEPT:
A) Self-disciplined
B) Action-oriented
C) Willingness and desire to follow others
D) Tolerant of uncertainty
c
- When comparing various types of small businesses, the firms that are easiest to start tend to be those that:
A) Involve professional services, such as dentistry or veterinary medicine.
B) Offer the greatest security
C) Have the greats prospect of long-term growth
D) Have the highest failure rates
d
Seeking the advice of established small business owners is:
A) Only helpful if the person giving the advice has been successful
B) Often valuable since you can learn from their experiences
C) A possible violation of fair trade laws
D) Generally not a good idea since they desire to limit their competition
b
A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a: A) Corporate raider B) Takeover specialist C) Financial capitalist D) Venture capitalist
d
When comparing small business to their larger competitors, it is clear that:
A) Small firms are slower to respond to opportunities than large firms.
B) Small firms can always outperform big firms on a level playing field.
C) Bigger is always better.
D) Small firms often can offer more personalized customer services than big firms
d
Lamont wants to improve his chances to be a successful entrepreneur, so he has written a business plan. One advantage of developing this plan is that it:
A) Forces him to think carefully about all aspects of his business.
B) Ensures financing will be available from angel investors
C) Meets federal reporting requirements for Revenue Canada
D) Will enable him to switch from a sole proprietorship to a corporation without any further paperwork
a
Which of the following pieces of advice would an experienced business owner share with someone who is thinking about starting a business venture?
A) Gain experience by working for a successful businessperson
B) Avoid the temptation of buying an existing firm. Build your own reputation and make your mistakes.
C) Jump in quickly, before the market conditions change and opportunities are lost.
D) Postpone consulting with an accountant or lawyer until you can afford their services.
a
Anthony, a small business owner, is considering marketing his product in Brazil. If he enters the Brazilian market, he is likely to face all of the following problems, EXCEPT:
A) The cultural differences between Canada and Brazil.
B) The heavy burden of bureaucratic paperwork.
C) Convincing foreign firms to do business with a small firm, rather than a large corporation.
D) Difficulties in obtaining adequate financing.
c
Kayla recently quit a job with a large corporation to start her own business. While she realizes that her decision comes with risk, she is excited by the chance to be independent and the challenges of running her own firm. Kayla is an example of a(n): A) Venture capitalist B) Raconteur. C) Intrapreneur. D) Entrepreneur.
d
Sally Wright has just taken early retirement, including a substantial retirement allowance. She wishes to continue working and wants to invest her retirement allowance in her own small business, and feels comfortable doing so with an established product and process. She worked for the same employer in the same job all of her working career and therefore has no experience in running her own business. In starting her own business she would be well-advised to:
A) Buy a franchise.
B) Start the business from scratch.
C) Buy an existing business.
D) Work for someone in an existing small business for the next 10 years.
a
Most Canadians find their jobs in: A) Small businesses B) Government agencies C) The manufacturing sector D) Large corporations
a
Intrapreneurs make use of ________ to develop and launch new products and generate new profits.
A) Government supplied physical and financial resources
B) Their employer’s existing human, financial, and physical resources
C) Old ideas abandoned by entrepreneurs
D) Their own personal financial resources
b
- Employees of small businesses often have greater job satisfaction than do employees of larger firms. One reason for this difference in job satisfaction is that employees of small businesses often:
A) Get more respect from their bosses
B) Earn higher wages
C) Receive more vacation time
D) Have more job security and better fringe benefits
a
Which of the following statements about business plans is the most accurate?
A) Capital required should detail the equipment on hand and planned purchases
B) Business plans should list key advisors, including accountants and lawyers
C) Most waste too much time on discussing the people involved
D) Financial projections are what really matters most to smart investors.
b
A good business plan will:
A) be purposefully vague, since specifics can restrict creativity and flexibility.
B) focus on the big picture and omit the small details of operating business
C) describe all aspects of the business, including the resources and qualifications of the owner(s).
D) focus on the nature of the business and the target market, omitting personal information to avoid personality issues.
c
