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Canadian Entrepreneurship & Small Business Management 5/e
Canadian Entrepreneurship & Small Business Management, 5/e
Wesley D. Balderson, University of Lethbridge
The Small Business Decision

Key Concept Quiz



1

The need for many abilities, such as accounting, finance and marketing is a potential disadvantage to those considering entrepreneurship.
A)True
B)False
2

_________ is one of the most important skills needed by a small business owner in order to succeed.
A)Marketing capability
B)Production and operations expertise
C)Financial management expertise
D)A flair for innovation
3

An individual would make an ideal small business owner if he/she possessed which of the following traits:
A)Desire to take risks
B)Strong communication skills
C)The ability to persevere
D)All of the above
4

In order to maintain the competitive edge of a small business, the owner may:
A)Pay attention to daily operations
B)Enter into markets in which the demand is small or local
C)Avoid industries that require great flexibility
D)A and B
5

_________ is the number one cause of small business bankruptcy.
A)Labour legislation
B)Employee fraud
C)Economic downturn
D)Supplier difficulties
6

Which of the following are skills most indicative of an entrepreneur versus a manager:
A)Strategy development and goal setting
B)Innovativeness and risk-taking
C)Research and team development
D)None of the above
7

An individual may seek to start up his/her own small business because of:
A)The potential for increased contact with people
B)The chance for independence
C)The opportunity for skill development
D)All of the Above
8

When starting up her new cosmetics company, Joan Ark should:
A)Prepare for long hours
B)Have a good plan in place
C)All of the above
D)None of the above
9

The following motivated Hans Tammemagi of Oakhill Publishing in Incident 2-1 to become a small business owner:
A)The opportunity for independence and potential financial awards
B)The chance to take over the family business
C)A more flexible work schedule
D)None of the above
10

Most small business owners will work more than 60 hours per week.
A)True
B)False
11

What might have prevented the failure of Richard Thomas' new car dealership and gas station:
A)An increased willingness to take risks
B)Recognition and effective handling of government regulations
C)Increased employee motivation
D)Better financial planning and management
12

Entrepreneurs possess strengths in problem-solving, working with others and developing strategies whereas managers are creative, independent and idea-oriented.
A)True
B)False
13

___________ may contribute to small business bankruptcy.
A)Customer difficulties
B)Supplier difficulties
C)Technological change
D)All of the above
14

To increases the chances of success, small businesses should enter industries that are more labour and less capital intensive.
A)True
B)False
15

Diagnostic Chemicals Ltd. is successful because the company:
A)Was thorough with operating details
B)Was very alert to government regulations
C)Entered a highly competitive market
D)Avoided competition with larger companies




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