Question 1

Which of the following is the main disadvantage of a co-operative?
High prices
Each member only gets one vote
High tax rates
Low surplus distribution rates
Difficult to attract equity investment

Accepted Answer

The answer of Which of the following is the main...

Question 2

Gloria wants to turn her sole proprietorship into a business corporation. Among the things that she must consider are
sole proprietorships must be made into partnerships before they can be made into corporations.
there is a threat of a hostile takeover if she has a private corporation.
double taxation that occurs with corporations.
the cost of dissolving her sole proprietorship will be high.
she has to decide whether or not she will issue shares when the company becomes a corporation.

Accepted Answer

The answer of Gloria wants to turn her sole proprietorship...

Question 3

Which of the following is a key contributing factor to the success of a small business?
Hard work, drive, and dedication
Overcapitalization
Strong control systems
Creativity
Insufficient capital

Accepted Answer

The answer of Which of the following is a key...

Question 4

Due to his hard work and notable contributions as an employee of KB Electronics, Nori has just been elected to the board of directors of the company. He will now be expected to fulfill his obligations as both an employee and director. Nori is a(n)
outside director.
special representative.
regular seat holder.
inside director.
corporate official.

Accepted Answer

The answer of Due to his hard work and notable...

Question 5

In the double taxation endured by some businesses, _________ is the first taxation and ___________ is the second taxation.
tax on corporate profits; value-added tax
tax on dividends; tax on corporate profits
tax on corporate profits; tax on dividends
property tax; income tax
social security tax; income tax

Accepted Answer

The answer of In the double taxation endured by some...

Question 6

A ________ is an incorporated form of business that is organized, owned, and democratically controlled by the people who use its products and services.
partnership
proprietorship
co-operative
corporation
preferred share

Accepted Answer

The answer of A ________ is an incorporated form of...

Question 7

Most new corporations start out as ________ corporations and then move to ________ corporations as they grow.
unlimited; limited
limited; unlimited
general, active
public; private
private; public

Accepted Answer

The answer of Most new corporations start out as ________...

Question 8

Jonathan is upset, claiming that he is a victim of double taxation. What form of business is he involved in?
Unlimited liability
Partnership
Corporation
Big business venture
Small corporate venture

Accepted Answer

The answer of Jonathan is upset, claiming that he is...

Question 9

Which is the most important reason for the failure of small business?
Poor marketing
Managerial incompetence
Loss of interest in the business
Fraud
Poor production capabilities

Accepted Answer

The answer of Which is the most important reason for...

Question 10

How is a cooperative different from a corporation?
A cooperative has no shareholders.
A cooperate is smaller than a corporation.
In a cooperative, each person has only one vote no matter how many shares they own.
Double taxation affects cooperatives more negatively than corporations.
A cooperative is not incorporated.

Accepted Answer

The answer of How is a cooperative different from a...

Question 11

Which of the following is correct with regard to cooperatives?
Cooperatives are not allowed to deduct patronage refunds to members out of before-tax income.
Members have an incentive to invest in equity capital of the co-operative.
Voting and financial control of the cooperative is typically held by a few wealthy individuals.
Double taxation affects cooperatives more negatively than corporations.
The democratic voting arrangements and dividends based purely on patronage discourage some entrepreneurs from forming or joining a co-operative.

Accepted Answer

The answer of Which of the following is correct with...

Question 12

Voting rights in a cooperative are
not restricted just to members.
required before one can buy anything from a cooperative.
the same as those found in a corporation, that is, the more one owns or contributes the more votes one has.
nonexistent; there are no votes taken in the running of a cooperative.
one vote per member regardless of the amount owned or contributed.

Accepted Answer

The answer of Voting rights in a cooperative are
not restricted...

Question 13

The person or people responsible for the firm's overall performance is/are
the directors.
the CEO.
the COO.
the CFO.
all employees.

Accepted Answer

The answer of The person or people responsible for the...

Question 14

What is "double taxation" in the context of a corporation?
Consumers are taxed twice, once when they purchase products and once when they receive dividend cheques.
The federal government taxes corporate earnings at twice the rate of earnings of sole proprietors.
Gross earnings are taxed, then net earnings.
A corporation must pay income taxes on its profits, and then shareholders must also pay personal income taxes on the dividends they receive from the corporation.
None of these explain double taxation.

Accepted Answer

The answer of What is "double taxation" in the context...

Question 15

The purpose of a cooperative is
as a benevolent association designed to help out its members in times of need.
as an association only for farmers.
to benefit its owners in the form of reduced prices and/or distribution of surplus at year end.
to remain small so that they can help all their members on an individual basis.
to buy fertilizer at reduced prices because of volume buying on the part of its members.

Accepted Answer

The answer of The purpose of a cooperative is
as a...

Question 16

An entrepreneur, Christina Rossini, is planning to open a small chain of 4 to 6 pizza stores under the brand name "Redenda Pizza." The name comes from combining the first names of the entrepreneur's grandparents. Christina wants to have a competitive advantage by offering innovative and distinct specialty pizzas and by offering the freshest ingredients. However, she is concerned that without proper planning, her venture will not be successful.
Answers to which of the following questions would be LEAST relevant to determining whether Christina has located a good opportunity in starting Redenda Pizza?
Are there other pizza restaurants in the immediate vicinity of the planned location?
Is the business of other pizza restaurants in the city growing?
Does the planned location of the restaurant have competitive rent?
Will Redenda Pizza offer unique ingredients in its food offerings?
Would Christina bring unique talents and ideas to a restaurant business?

Accepted Answer

The answer of An entrepreneur, Christina Rossini, is planning to...

Question 17

A study by CIBC World Markets found that small businesses with above average growth were run by
owners that had a high level of internet connectivity.
owners with more formal education.
owners that used professional advisors.
owners that adopted a corporate ownership structure.
all of these were found in the study.

Accepted Answer

The answer of A study by CIBC World Markets found...

Question 18

Suzy is considering incorporating her financial consulting business. Of the items listed below, which one would not be a problem if she incorporates?
Heavy regulation
Double taxation
Complex legal requirements
Unlimited liability
High costs of incorporation

Accepted Answer

The answer of Suzy is considering incorporating her financial consulting...

Question 19

An entrepreneur, Christina Rossini, is planning to open a small chain of 4 to 6 pizza stores under the brand name "Redenda Pizza." The name comes from combining the first names of the entrepreneur's grandparents. Christina wants to have a competitive advantage by offering innovative and distinct specialty pizzas and by offering the freshest ingredients. However, she is concerned that without proper planning, her venture will not be successful.
Christina is trying to identify potential problems in order to avoid them or at least be better positioned to react if they cannot be avoided. In doing so, Christina should account for all of the following possibilities except
the possibility that years in the future scientists may give a new communicable disease a name that sounds similar to "Redenda."
the possibility that a significant number of her potential customers could be allergic to one or more of her ingredients.
the possibility that seasonal variations in the availability of ingredients could affect the price of those ingredients.
the possibility that advertising "fresh" ingredients may prevent Redenda Pizza from using less-expensive ingredients.
the possibility that many customers are reluctant to try new pizza recipes.

Accepted Answer

The answer of An entrepreneur, Christina Rossini, is planning to...

Question 20

An entrepreneur, Christina Rossini, is planning to open a small chain of 4 to 6 pizza stores under the brand name "Redenda Pizza." The name comes from combining the first names of the entrepreneur's grandparents. Christina wants to have a competitive advantage by offering innovative and distinct specialty pizzas and by offering the freshest ingredients. However, she is concerned that without proper planning, her venture will not be successful.
Which of the following, if true, would strengthen the case that Christina has a good opportunity in opening a new pizza restaurant?
There are many existing pizza restaurants in Christina's city.
The pizza business in Christina's city has remained largely unchanged for many years.
Restaurant consumers in Christina's city mostly frequent Mexican restaurants.
Pizza restaurants require several experienced employees to be successful.
Pizza restaurants can be found in almost any town in the United States.

Accepted Answer

The answer of An entrepreneur, Christina Rossini, is planning to...

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

Which of the following is the main disadvantage of a co-operative? High prices Each member only gets one vote High tax rates Low surplus distribution rates Difficult to attract equity investment

Which of the following is a key contributing factor to the success of a small business? Hard work, drive, and dedication Overcapitalization Strong control systems Creativity Insufficient capital

In the double taxation endured by some businesses, _ is the first taxation and ___ is the second taxation. tax on corporate profits; value-added tax tax on dividends; tax on corporate profits tax on corporate profits; tax on dividends property tax; income tax social security tax; income tax

A ________ is an incorporated form of business that is organized, owned, and democratically controlled by the people who use its products and services. partnership proprietorship co-operative corporation preferred share

Most new corporations start out as corporations and then move to corporations as they grow. unlimited; limited limited; unlimited general, active public; private private; public

Jonathan is upset, claiming that he is a victim of double taxation. What form of business is he involved in? Unlimited liability Partnership Corporation Big business venture Small corporate venture

Which is the most important reason for the failure of small business? Poor marketing Managerial incompetence Loss of interest in the business Fraud Poor production capabilities

The person or people responsible for the firm's overall performance is/are the directors. the CEO. the COO. the CFO. all employees.

Suzy is considering incorporating her financial consulting business. Of the items listed below, which one would not be a problem if she incorporates? Heavy regulation Double taxation Complex legal requirements Unlimited liability High costs of incorporation

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

Which of the following is the main disadvantage of a co-operative? High prices Each member only gets one vote High tax rates Low surplus distribution rates Difficult to attract equity investment

Which of the following is a key contributing factor to the success of a small business? Hard work, drive, and dedication Overcapitalization Strong control systems Creativity Insufficient capital

A ________ is an incorporated form of business that is organized, owned, and democratically controlled by the people who use its products and services. partnership proprietorship co-operative corporation preferred share

Most new corporations start out as ________ corporations and then move to ________ corporations as they grow. unlimited; limited limited; unlimited general, active public; private private; public

Jonathan is upset, claiming that he is a victim of double taxation. What form of business is he involved in? Unlimited liability Partnership Corporation Big business venture Small corporate venture

Which is the most important reason for the failure of small business? Poor marketing Managerial incompetence Loss of interest in the business Fraud Poor production capabilities

The person or people responsible for the firm's overall performance is/are the directors. the CEO. the COO. the CFO. all employees.

Suzy is considering incorporating her financial consulting business. Of the items listed below, which one would not be a problem if she incorporates? Heavy regulation Double taxation Complex legal requirements Unlimited liability High costs of incorporation

Most new corporations start out as corporations and then move to corporations as they grow. unlimited; limited limited; unlimited general, active public; private private; public