Question 25(0.3 points)

The Business Development Bank of Canada (BDC) provides

Question 25 options:

	funding for all small Canadian owned start-up businesses without any conditions.
	various programs and services for small businesses that satisfy certain criteria.
	focuses on support for small businesses in the manufacturing industry.

Question 26(0.3 points)

What is theyear 2 depreciation amountfor an equipment with an original purchase price of $60,000. Use a 15% captial cost allowance for the calculation.

Question 26 options:

	$9,000
	$7,650
	$43,350

Question 27(0.3 points)

Through industry analysis using Michael Porter's five forces, you have realized that the industry in which you have your small business has concerning threats of new entrants. Which of the following strategies could you use to ensure that your business would still survive?

Question 27 options:

	Create entry barriers that new entrants cannot match
	Move to another location
	Take advantage of buyers' power in the industry

Question 28(0.3 points)

An important capabilities that an owner manager ought to have are

Question 28 options:

	pleasant personality and talent.
	industry connections
	expertise in the fundamentals of management.
	banking contacts.

Question 29(0.3 points)

After calculating the current ratio for his operations, Mr. Kim also wants to calculate the Quick Ratio. What is the difference between the quick ratio and the current ratio?

Question 29 options:

	They are both the same
	The quick ratio is a better measure of readily available financial resources to pay upcoming short- term debt
	The quick ratio helps Mr. Kim to know how many months he can pay bills until he runs out of cash

Question 30(0.3 points)

If you wanted to apply for a loan to finance your small business, what will you normally provide to potential lenders in order for them to judge your creditworthiness?

Question 30 options:

	Personal Information
	Present debt and past lending history
	Banking information
	All of the answers are correct

Question 31(0.3 points)

What is the current ratio of Mr. Kim's operations if he has

Liquid Assets of $8,000

Current liabilities of $4,000

(formula Liquid Assets / Current Liabilities).

Interpret your answer

Question 31 options:

	$2, meaning that for every $2 of liability, Mr. Kim has $1 liquid assets
	2, meaning that for every$2 of liquid assets, Mr. Kim has $1 worth of liability
	2, meaning that Mr. Kim cannot pay his upcoming bills.

Question 32(0.3 points)

What is the debt-to-equity ratio of Mr. Kim's operations if he has the following

Total Liabilities = $60,000

Owner's Equity = $40,000

(formula Total Liabilities / Owner's Equity).

What is the answer and what does it mean?

Question 32 options:

	1.5, meaning that for every $1.00 of equity, Mr. Kim's business owes $1.50
	1.5, meaning that for every$1.00 of liability Mr. Kim has equity of $1.50
	1.5, meaning that Mr. Kim uses equal debt and equity in financing his business.

Question 33(0.3 points)

Mohammed wants to use equity financing but does not want to go back to investors to ask for more funds. He could rather use this other source of equity financing to fund his company's upcoming project.

Question 33 options:

	Crowdfunding
	Retained earnings
	Venture capital

Question 34(0.3 points)

Qualitative assessments include a look at:

Question 34 options:

	market dominance metrics.
	cash flow numbers.
	how well sales are doing for a particular product.
	issues related to owner characteristics and capabilities .

Question 35(0.3 points)

A business plan is of value to only start-up businesses.

Question 35 options:

	True
	False

Question 36(0.3 points)

If you wanted to franchise the business you are working on, you would first see a lawyer and review the legal requirements, and then start selling to franchisees.

Question 36 options:

	True
	False

Question 37(0.3 points)

________ is a type of franchise

Question 37 options:

	Manufacturer-retailer
	Wholesaler-retailer
	Retailer-service depot

Question 38(0.3 points)

One of the attractive benefits of being a franchisee is

Question 38 options:

	future income is a high certainty
	it can replace a lost job
	there is no need to learn about an industry in depth

Question 39(0.3 points)

Financing difficulties of small business are often

Question 39 options:

	due to bias against entrepreneurs
	a symptom of management problems
	because there are too many small businesses

Question 40(0.3 points)

A business plan helps to:

Question 40 options:

	attract customers.
	direct retail store layout.
	generate growth.
	keep business growth on course.

Question 41(0.3 points)

Many large organizations realize that to remain competitive, they need to encourage:

Question 41 options:

	entrepreneurial activity.
	risk-taking activity.
	intrapreneurial activity.
	confidence-building activity.

Question 42(0.3 points)

If you were to operate your business and decided to sell it after four years, you could charge a Goodwill amount which the buyer would have to pay.

Question 42 options:

	True
	False

Question 43(0.3 points)

Which of the following will be considered both a start-up cost and an operating cost?

Question 43 options:

	First month's rent
	Stationery cost
	Advertising cost
	Initial equipment

Question 44(0.3 points)

Before Adjoa writes a business plan for her propsoed sandwich shop, she would have to

Question 44 options:

	ensure that she has enough funding to be successful
	perform an opportunity assessment or conduct a feasibility study
	hire or look for key position employees

Question 45(0.3 points)

Jamie is establishing a small business in bakery goods to service individual customers and hotels in his city. In choosing a location, what should be his major consideration?

Question 45 options:

	Closeness to his target market
	Closeness to major raw materials
	Availability of employees needed for his operations

Question 46(0.3 points)

If you were to conduct a market research to determine where small business opportunities are, you would realize that the sector that would provide a good chance of success would be .......

Question 46 options:

	service operations
	online retail
	small appliance manufacturing
	convenience stores

Question 47(0.3 points)

Mr. Kim is expecting the following cash flow in his business.

Inflows:

Nov = $40,000

Dec = $30,000

Jan = $25,000

Feb = $20,000

Outflows:

Nov = $35,000

Dec = $30,000

Jan = $20,000

Feb = $10,000

In calculating the cumulative (running balances) for the four months what will Mr. Kim's cash position be inJanuary and February?

Question 47 options:

	$5,000; $0
	$5,000; $10,000
	$10,000; $20,000
	$5,000; -$20,000

Question 48(0.3 points)

If you were to engage in test marketing for your new product or services, you will be ......

Question 48 options:

	asking potential customers how much they would pay for the product.
	putting product into an existing outlet.
	sending surveys to a significant number of customers in the industry.

Question 49(0.3 points)

If you were to run the small business that you are working on in the assignments, which of these is the most critical key factor that could cause the business to fail?

Question 49 options:

	not holding a business degree.
	growing too quickly.
	Selling the same products and services already on the market
	Wrong saturation index calculation

Question 50(0.3 points)

The entrepreneurial process has four main stages. By completing your feasibility study in assignment 2, you have completed which stage(s) of the process?

Question 50 options:

	1
	1 and 2
	3