Entrepreneurship and Small Business Quiz

What is the definition of a small business?

• A business with fewer than 100 employees

• A business with fewer than 1000 employees

• A business with fewer than 50 employees

• A business with fewer than 500 employees

What is the definition of a new venture/firm?

• A business that has been operational for more than 12 months

• A business that has been operational for more than 24 months

• A business that has been operational for less than 6 months

• A business that has been operational for less than 12 months

What is the process of identifying market opportunities and acquiring the necessary resources to capitalize on them called?

• Market research

• Business development

• Product innovation

• Entrepreneurship

What is the role of small businesses in the Canadian economy?

• They account for 50% of all businesses in Canada

• They account for 75% of all businesses in Canada

• They account for 98% of all businesses in Canada

• They account for 25% of all businesses in Canada

What are the three options for starting a small business?

• From scratch, starting a partnership, buying a franchise

• From scratch, starting a corporation, buying a franchise

• From scratch, buying a new business, buying a franchise

• From scratch, buying an existing business, buying a franchise

What is the advantage of a sole proprietorship?

• Limited liability

• Full control

• Ease of selling shares

• Perpetual existence

What is the disadvantage of a partnership?

• Growth potential

• Unlimited liability for general partners

• Limited liability

• Limited appeal for some entrepreneurs

What is the advantage of a corporation?

• Ease of borrowing

• Perpetual existence

• Limited liability

• Full control

What is the disadvantage of a co-operative?

• Limited liability

• Longevity

• Difficulty attracting investment based on usage

• Tax benefits

What are the four steps in the entrepreneurial process?

• Identifying opportunities, accessing resources, building the right team, assessing the fit between elements

• Market research, product development, financial planning, management

• Hiring employees, setting up a website, advertising, sales

• Networking, attending events, social media marketing, customer service