Exam 4: Entrepreneurship, Small Business, and New Venture Creation

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Franchises fail less because t...

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A) a lot of government paperwork.
B) simple to form.
C) easy to dissolve.
D) limited resources.
E) unlimited liabilities.

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Research shows that entrepreneurial char...

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A) Sam and Nina have very different personalities.
B) Sam and Nina have the same skill sets.
C) Sam and Nina are both motivated and energetic.
D) Nina has good leadership qualities.
E) Sam has a strong marketing background.

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The governing body of a corporation is i...

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There are five criteria: (1) Does this i...

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- Company description
- Produc...

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A) Various measures might be used to define a small business, including the number of people the business employs, the company's sales revenue, the size of the investment required, or the type of ownership structure the business has.
B) Since the Business Register tracks businesses and the Labour Force Survey tracks individuals, these sources of information are not useful in defining the term "small business."
C) To be included in the Business Register, a business must have at least five paid employees.
D) In the Business Register, a goods-producing company is considered small if it has fewer than 500 employees, while a service-producing business is considered small if it has fewer than 100 employees.
E) All of these are correct.

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A) family and friends; venture capitalists
B) private lenders; family and friends
C) private lenders; trade credit
D) venture capitalists; private lenders
E) family and friends; private lenders

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A) Improved chances of success
B) Access to big business management skills
C) Don't have to build a business step by step
D) Incentive of owning your own business
E) Low start-up costs

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A) The unlimited liability of the partnership
B) The ability to grow with the addition of new talent and money
C) The ease of implementing an effective control system
D) The increased role of luck
E) The need for minority partners

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The most common sources of equity financ...

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A) A corporation is larger than a sole proprietorship.
B) A corporation is a legal entity that is separate from its owners, while in a sole proprietorship, there is no such distinction.
C) A sole proprietor has unlimited liability, while investors in a corporation have limited liability.
D) A corporation is more bureaucratic than a sole proprietorship.
E) There isn't really a fundamental difference between a sole proprietorship and a corporation.

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A) how well command economies are performing compared to market economies.
B) the extent to which entrepreneurs have freedom to pursue new business opportunities.
C) how well entrepreneurs are performing in advanced industrialized countries compared to developing economies.
D) how much profit entrepreneurs are making in command economies compared to market economies.
E) the economic freedom entrepreneurs have in various countries, using the United States as the comparison point.

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