Question 1

Many small businesses are ditching Excel,instead preferring the use of _______ to handle estimates,invoice clients and keep track of expenses.

Accepted Answer

Freshbooks is a cloud-based platform that offers a user-friendly interface to handle estimates, invoice clients, and keep track of expenses. It is tailored specifically for small businesses, providing features like time tracking, project management, and financial reporting. Freshbooks also integrates with other business tools like PayPal, Stripe, and G Suite, making it an all-in-one solution for managing finances.

Question 2

Which of the following is considered to be a disadvantage of the general partnership form of business organization?

Accepted Answer

Divided authority is a disadvantage of general partnership as every partner has an equal voice in decision-making, which can sometimes lead to conflicting opinions and delayed decisions. The remaining options (A, C, and D) are advantages of general partnership.

Question 3

A co-operative is owned and operated by:

Accepted Answer

A co-operative is owned and operated by its membership, who have equal voting rights and share in the profits or benefits generated by the co-operative. It is a democratic organization that is focused on meeting the needs and interests of its members, rather than generating profits for outside investors or stakeholders.

Question 4

Small businesses in Ontario must register for and start collecting HST once their business makes:

Accepted Answer

Small businesses in Ontario must register for and start collecting HST once their total sales in a year exceed $30,000, regardless of whether they are making a profit or have credit available to their customers. Dividend payments to shareholders do not affect HST registration requirements.

Question 5

How do survival rates of co-operatives compare to those of other business corporations?

Accepted Answer

According to a study conducted by the International Labour Organization, the survival rate of co-operatives after 10 years is more than twice that of other business corporations. Therefore, option B is the correct choice.

Question 6

All of the following are examples of Canadian co-operative enterprises,except:

Accepted Answer

Mountain Equipment Co-operative, Desjardins, and The Co-operators Insurance are all examples of Canadian co-operative enterprises. Sportinglife, on the other hand, is a privately held retail company.

Question 7

Which of the following company names does not require formal registration for a sole proprietorship?

Accepted Answer

In many jurisdictions, a sole proprietorship using the owner's legal name (in this case, "Peter Wan's Painting Professionals" implies the use of Peter Wan's name) does not require formal registration. However, names that do not include the owner's legal name (like Eager Beaver, Fanciful Flowers, and Sunlight Spa) typically require registration as a "doing business as" (DBA) name to legally operate under that name.

Question 8

Which of the following is considered a disadvantage of a limited partnership?

Accepted Answer

Limited partnerships have difficulties in changing ownership as it involves legal procedures and may lead to the dissolution of the partnership. The other options are advantages of a limited partnership where the partners have limited liability, growth potential, and great access to capital.

Question 9

The _____ structure of a co-op is maintained by a one-member/one- ______ system.

Accepted Answer

The democratic structure of a co-op relies on the principle of one-member/one-vote, where each member regardless of their share size or financial contribution has an equal say in the decision-making process of the co-op. This ensures that the co-op is run in a fair and transparent manner, and that the interests of all members are considered equally. Choice A is incorrect because a private structure is not applicable to a co-op, as co-ops are member-owned and run organizations. Choice B is incorrect because a public structure is also not applicable to a co-op, as co-ops are not publicly traded companies. Choice D is incorrect because an autocratic structure is not compatible with the democratic values of a co-op.

Question 10

In order to incorporate,a business must be earning:

Accepted Answer

There is no specific earnings threshold for incorporation. A business can incorporate regardless of its earnings. Other factors, such as liability protection and tax advantages, may influence the decision to incorporate.

Question 11

A general partnership is most similar to a _______,expect for the number of people running the business.

Accepted Answer

A general partnership is similar to a sole proprietorship in terms of the lack of separation between the business and the owners. Both the owner of a sole proprietorship and the partners in a general partnership have unlimited personal liability for the debts and obligations of the business. However, the main difference is that a general partnership has more than one owner.

Question 12

As a sole proprietor,your taxes are:

Accepted Answer

As a sole proprietor, your business income is declared on your personal tax return using Form T2125. This makes your taxes fairly simple since you don't have to file a separate tax return for your business. You will however, need to keep track of your business expenses and income separately from your personal income.

Question 13

When it comes to selecting a business name to be registered,or for the purpose of incorporation,all of the following apply except:

Accepted Answer

Names are not always approved on the first submission, as it depends on various factors such as availability and compliance with regulations.

Question 14

Which of the following is an example of a regular deduction your business will be required to make from employees' paycheques?

Accepted Answer

Employment Insurance is a regular deduction that employers are required to make from employees' paycheques as it is a legal requirement in Canada. Fitness memberships, parking, and dental insurance are not mandatory deductions and are usually offered as voluntary benefits that employees can opt into.

Question 15

All of the following are advantages of a general partnership,except:

Accepted Answer

Unlimited liability is a disadvantage of a general partnership. The other options listed are advantages of a general partnership.

Question 16

All of the following are advantages of the sole proprietorship form of business organization,except:

Accepted Answer

The disadvantage of sole proprietorship is that it does not provide limited liability protection, meaning that the owner is personally liable for all debts and legal obligations of the business. The other options (A, B, and C) are advantages of sole proprietorship.

Question 17

In Ontario,small businesses should plan to pay approximately ______ in taxes,when considering both HST and income tax that they must surrender to Revenue Canada at the end of the year.

Accepted Answer

The answer of In Ontario,small businesses should plan to pay...

Question 18

Credit unions are:

Accepted Answer

Credit unions are financial co-operatives that offer financial services such as loans, savings accounts, and other financial products to members who share a common bond such as working for the same employer, living in the same community, or belonging to the same organization. They are owned by their members and operate as not-for-profit organizations, with any profits being returned to members in the form of dividends or lower fees and interest rates.

Question 19

Under this business form,the owner has complete control over the conduct and management of the business.

Accepted Answer

A sole proprietorship is a form of business where there is only one owner who has complete control over the management of the business. The owner is personally liable for all debts and obligations of the business, but also retains all profits earned by the business. This form of business is easy to set up and has fewer legal formalities compared to other business forms like corporations or partnerships.

Question 20

If your business is paid $15,000 for providing services to a client,but it cost you $6000 in supplies and equipment in order to provide that service,then you will be taxed on:

Accepted Answer

The taxable income is the revenue minus the expenses incurred to earn that revenue. In this case, revenue is $15,000 and expenses are $6,000, so the taxable income is $9,000. Therefore, you will be taxed on $9,000.

Quiz 6: Cost and Profitability Assessment