QUESTION 2

Which of the following is NOT a contribution of small business to society

		Foreign ownership
		labour intensity
		Innovations and Inventions
		Social contributions

QUESTION 3

Canada small business loan program is a program that allows businesses to access capital from financial institutions guaranteed by the government of Canada. What common challenge does this program solve for small business owners

	a.	The challenge of securing needed capital
	b.	The challenge of hiring competent employees
	c.	The challenge of finding a suitable location
	d.	The challenge of managing business operations

1 points

QUESTION 4

Ben Baldwin and Jamie Schneiderman own ClearFit, a Toronto-based software company that develops and sells applicant screening software. During focus group meetings with customers, Ben and Jamie realized that requiring users to follow complex instructions when using their analytics software was pushing away small businesses.

The partners quickly re-thought their strategy and simplified instructions for users.

Which characteristic of businesses and of their owners is exemplified by Ben and Jamie's story?

		Alertness to change
		Ability to attract and hold competent employees
		Staying close to the consumer
		Ability to deliver superior customer service

1 points

QUESTION 5 Jay Dingwall graduated with an MBA in Sports Marketing. Despite having two degrees in marketing and having competed in minor league sports, Jay couldn't land a marketing job in Toronto.

Determined to make his mark in marketing, Jay returned to Halifax and partnered with Ryan Joseph to create Famous Folks, an brand-building agency for celebrities and businesses.

Needing to land their first account, Jay and Ryan created an unsolicted marketing campaign for a floundering seafood restaurant whose brand was outdated and no longer relevant.

Impressed with Jay's and Ryan's initiative and their fresh thinking, the seafood restaurant signed on as Famous Folks' first contract. Today, Famous Folks is a national branding agency that's in high demand.

When Jay and Ryan presented an unsolicited pitch to the restaurant owner, what productivity attribute did they demonstrate?

		Floundering seafood restaurant...good one, Sir.
		Bias for action
		Staying close to the customer
		Autonomy and entrepreneurship

QUESTION 7

Businesses fail for a variety of reasons, most of which can be classified as either management problems or external shocks.

Statistics Canada estimates that more than two-thirds of businesses fail because of some type of external shock.

Why is loss of customers considered an external shock?

		It's an external shock because a firm cannot control its customers (but it can control the way in which it responds to customers' requests, failure of which will become a management problem).
		It's an external shock because it's not a management problem. (Sir, I love your COVID-19 beard )
		It's an external shock because customer loss is inevitable. Firms lose one-fifth of their customers annually.
		It's an external shock because the textbook say it is. Final answer!

QUESTION 8

Individuals who are skilled at working with people find that contacting customers, suppliers and employees regularly one of the most rewarding aspects of running a small business. Yet, this can also be a source of frustration. Which of the following is not an example of people conflicts that can arise in a small business?

		A sales team member regularly submits monthly sales figures late, which causes a delay in the preparation of income statement for your banker.
		Your Sales Manager expresses concern that your CFO's "Stop Delivery" order on her largest client will cause the customer to look for another supplier.
		Your supplier notifies you that your recent order will cost three times its previous price due to increased demand.
		Government of Canada has enacted legislation prohibiting the sale of goods to Russia for use in offshore oil exploration and production

QUESTION 10

Businesses that are overleveraged carry a large amount of debt and are unable to pay their outstanding loans.

Which conditions can cause an overleveraged business to experience the risk of bankruptcy?

		When net worth becomes a negative value
		When banks withdraw their support
		If sales fall or profits drop
		When inflation lasts longer than two quarters

QUESTION 11

Net income typically has a lower value than net cash flow mainly because it doesn't include income tax.

True

False

QUESTION 12

An important part of a feasibility analysis for a manufacturing business is

		the relative newness of the product
		the ease of the manufacturing process.
		the financial break-even point.
		the total dollars invested by owners.

1 points

QUESTION 13

In order to be successful, a business should ensure that it has a monopoly position in the market

True

False

1 points

QUESTION 14

Which is not a form of primary data?

		Market observation
		Statistics Canada labour market surveys
		Personal interviews
		Internet surveys

1 points

QUESTION 15

Which of the following is not a natural advantage for businesses

		Innovation
		Customer service
		Product quality
		Supplier volume

1 points

QUESTION 16

Why is the Executive Summary written at the conclusion of the preparation of the Business Plan?

		So that differentiated value that your firm provides can be substantiated with data and projected figures.
		So that information will provide the latest content of the Business Plan.
		So that points within the Business Plan may be summarized in a rational manner that appeals to investors.
		So that the authors can introduce themselves and describe how the firm's products can benefit customers and other stakeholders, such as investors.

1 points

QUESTION 17

The primary feature of Snapchat is that photos and messages are accessible to recipients only for a short time. When Snapchat was developed in 2011, it was the first app of its kind to offer this type of functionality.

What is a key disadvantage when offering new product like Snapchat?

	a.	Ongoing maintenance costs in providing access via multiple platforms (e.g., Android, iOS, Windows, etc.)
	b.	Lack of information on how much to charge for the app or which revenue model to use.
	c.	Lack of knowledge of registering a patent for the app.
	d.	Lack of comparable history against which to measure the app's potential success.

1 points

QUESTION 18

In 2009, Tatiana Read started her public relations firm, The Knot Group, from the bedroom of her parent's home. Having put PR in "entrePReneur", Read's firm is one of Toronto's Top Ten Public Relations firms.

In Read's situation, the location of her firm was not an important factor in the success of her business.

True or False: Many service and some small manufacturers fall into this category (i.e., a home office is appropriate for which location is not an important consideration).

True

False

1 points

QUESTION 19

Which of the following describes a joint venture?

		An agreement by one or more sole proprietors, partnerships or corporations to participate in a business venture.
		Creation of the world's largest cannabis company by former rivals, Tilray an Alphria.
		An agreement to jointly lease business premises with two or more businesses with the goal of rationalizing costs
		The process of developing a new product category or a new business by merging traditional products (e.g., chocolate) with newly created product categories recreational cannibis (e.g., cannabis-infused chocolate bars).

1 points

QUESTION 20

For small business startups, why should new entrepreneurs lease major equipment and premises instead of purchasing them?

	a.	To conserve working capital
	b.	Premiums to insure property that is leased cost significantly less than property that is owned.
	c.	To benefit from government rebates that favour leasing vs. buying.
	d.	To attract tenants, commercial landlords typically include leasehold improvements. Leasing premises would reduce startup costs for entrepreneurs compared to those who choose to purchase land and building in which to locate their businesses.