Small Business Management
Question Bank
Course Introduction
Small Business Management introduces students to the fundamentals of launching, operating, and growing a small enterprise. Students will explore key concepts including business planning, financing, marketing, and the legal aspects of small business ownership. The course emphasizes the development of managerial skills suited to small businesses, such as decision making, leadership, and resource allocation. Through case studies and practical assignments, students learn how to identify entrepreneurial opportunities, develop business strategies, and adapt to the challenges faced by small businesses in a competitive environment.
Recommended Textbook
Business Essentials 8th Canadian Edition by
Ronald J. Ebert
Available Study Resources on Quizplus
15 Chapters
4158 Verified Questions
4158 Flashcards
Source URL: https://quizplus.com/study-set/1360
Page 2
Chapter 1: Understanding the Canadian Business System
Available Study Resources on Quizplus for this Chatper
250 Verified Questions
250 Flashcards
Source URL: https://quizplus.com/quiz/27146
Sample Questions
Q1) ________ produce most of the goods and services consumed in Canada.
A) Businesses
B) Labour unions
C) Non-profit organizations
D) Canadian provincial governments
E) Charities
Answer: A
Q2) A business is an organization that seeks to earn profits by providing goods and services to customers.
A)True
B)False
Answer: True
Q3) Forbes magazine ranked 134 countries in terms of how attractive they were to do business in. Where did Canada rank?
A) First
B) Second
C) Fifth
D) Twenty-fifth
E) Eighty-seventh
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: The Environment of Business
Available Study Resources on Quizplus for this Chatper
235 Verified Questions
235 Flashcards
Source URL: https://quizplus.com/quiz/27147
Sample Questions
Q1) In terms of organizational boundaries and environments, which is correct?
A) Large business firms are heavily influenced by events in the external environment, but small business firms are much less influenced.
B) No single firm can control the environment.
C) Most organizations have a single environment, but some have multiple environments they must cope with.
D) The major elements of the external environment are marketing, finance, production, and human resources.
E) The most important features of the external environment are the political and social aspects.
Answer: B
Q2) Why would a government most likely be concerned about its country carrying a trade deficit?
A) A trade deficit means that the country's productivity is low.
B) A trade deficit means local companies do not have enough competition.
C) A trade deficit ties up money that could be used for economic growth.
D) A trade deficit decreases demand for goods overall.
E) A trade deficit means that consumers do not have enough purchasing power.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Conducting Business Ethically and Responsibly
Available Study Resources on Quizplus for this Chatper
275 Verified Questions
275 Flashcards
Source URL: https://quizplus.com/quiz/27148
Sample Questions
Q1) Battleford Corp. is in the processes of setting up a system to manage its social responsibility program. What should they do first?
A) Conduct a social audit.
B) Ask the government to identify specific things the company is doing that need to be corrected.
C) Make sure that support is evident from top management.
D) Appoint a director of the firm's social agenda.
E) A committee of top managers must develop a strategic plan for social responsibility. Answer: C
Q2) What are the four ethical norms and the issues that they deal with?
Answer: - Utility: Does a particular act optimize what is best for those who are affected by it?
- Rights: Does it respect the rights of the individuals involved?
- Justice: Is it consistent with what we regard to be fair?
- Caring: Is it consistent with people's responsibilities to each other?
Q3) What is a social audit?
Answer: A social audit is a systematic analysis of a firm's success in using funds earmarked for meeting its social responsibility goals.
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Entrepreneurship, Small Business, and New Venture Creation
Available Study Resources on Quizplus for this Chatper
243 Verified Questions
243 Flashcards
Source URL: https://quizplus.com/quiz/27149
Sample Questions
Q1) Explain the role of a corporation's board of directors.
Q2) Individuals who both recognize and seize opportunities are referred to as
A) speculators.
B) franchisees.
C) entrepreneurs.
D) intrapreneurs.
E) independents.
Q3) A ________ is an incorporated form of business that is organized, owned, and democratically controlled by the people who use its products and services.
A) partnership
B) proprietorship
C) co-operative
D) corporation
E) preferred share
Q4) What are the three key elements in the entrepreneurial process?
A) The entrepreneur, the opportunity, and the marketing plan
B) The marketing plan, the production plan, and the finance plan
C) The product (or service) plan, the entrepreneur, and luck
D) The entrepreneur, the opportunity, and the resources
E) The financing plan, the product (or service) plan, and luck
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: The Global Context of Business
Available Study Resources on Quizplus for this Chatper
260 Verified Questions
260 Flashcards
Source URL: https://quizplus.com/quiz/27150
Sample Questions
Q1) Explain why foreign direct investment is often the riskiest, most complex, and most involved of the various types of international involvement.
Q2) List and briefly explain the different international organizational structures that can be used to "go international."
Q3) Give an example of an absolute advantage.
Q4) Describe the forces that have combined to spark and sustain globalization.
Q5) Which of the following companies may not find it profitable to go international?
A) A mining company
B) A company that buys and sells fresh produce and fish
C) A manufacturing firm specializing in bicycles
D) A financial investment firm
E) A newsprint company
Q6) Over the past few decades, Canada's overall trade balance has generally been favourable, but only because we export so much more to the United States than we import from the United States.
A)True
B)False
Q7) Why would two companies, both earning large profits and expanding into Japan, form a strategic alliance?
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Managing the Business Enterprise
Available Study Resources on Quizplus for this Chatper
271 Verified Questions
271 Flashcards
Source URL: https://quizplus.com/quiz/27151
Sample Questions
Q1) At the end of the budget period, Mary compares actual performance against standards. When she does this, she is performing the ________ function of management.
A) planning
B) organizing
C) leading
D) controlling
E) negotiation
Q2) Is management an art or a science?
Q3) When used as the means for measuring success or failure, goals are operating as A) management tools.
B) budget standards.
C) bonus criteria.
D) performance targets.
E) motivators.
Q4) Coca-Cola's decision to increase sales in Europe by building European bottling facilities is an example of a strategic plan.
A)True
B)False
Q5) What are the purposes of goal setting?
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Organizing the Business Enterprise
Available Study Resources on Quizplus for this Chatper
278 Verified Questions
278 Flashcards
Source URL: https://quizplus.com/quiz/27152
Sample Questions
Q1) The process of grouping together jobs into logical units is known as departmentalization.
A)True
B)False
Q2) Which of the following organizational systems is the part that can be seen and represented in chart form?
A) Formal organization
B) Grapevine
C) Informal organization
D) Normal organization
E) Product organization
Q3) List the three forms of authority.
Q4) Is the informal organization positive or negative?
Q5) Department stores like Hudson's Bay are most likely to departmentalize by A) function.
B) geography.
C) process.
D) customer.
E) product.
Q6) What is delegation?
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Managing Human Resources and Labour Relations
Available Study Resources on Quizplus for this Chatper
293 Verified Questions
293 Flashcards
Source URL: https://quizplus.com/quiz/27153
Sample Questions
Q1) What is the difference between mediation and arbitration?
Q2) Evaluating each potential candidate for an existing job opening and deciding on whom to extend a job offer to is called
A) recruiting.
B) screening.
C) interviewing.
D) decision making.
E) selecting.
Q3) Currently, less than 20 percent of the total Canadian workforce is unionized.
A)True
B)False
Q4) The range of workers' attitudes, values, beliefs, and behaviours that differ by gender, race, and ethnicity is called
A) the glass ceiling.
B) affirmative action.
C) comparable worth.
D) reverse discrimination.
E) workforce diversity.
Q5) How can diversity create competitive advantage?
Q6) Identify and discuss the various types of incentive compensation plans. Page 10
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 9: Motivating, Satisfying, and Leading Employees
Available Study Resources on Quizplus for this Chatper
319 Verified Questions
319 Flashcards
Source URL: https://quizplus.com/quiz/27154
Sample Questions
Q1) Tricia performs some of her job duties at home and some days all of her job duties are performed away from her standard office setting. This is called
A) flextime.
B) job redesign.
C) telecommuting.
D) virtual offices.
E) work share.
Q2) Identify the advantages (and disadvantages) that telecommuting provides for both the company and its employees.
Q3) According to the two-factor theory, how should managers enhance motivation?
Q4) ________ is an advantage of telecommuting for individuals, but ________ is a disadvantage for company managers.
A) Better use of time; lack of knowledge of where workers are
B) Difficulty separating personal and professional life; increased productivity
C) Lower stress levels; feeling ill-suited for telecommuting
D) Lower electric bills; managers have to spend more time with subordinates on the phone
E) Feeling out of the loop; requires a change in management thinking
Q5) What is virtual leadership?
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 10: Operations Management, Productivity, and Quality
Available Study Resources on Quizplus for this Chatper
300 Verified Questions
300 Flashcards
Source URL: https://quizplus.com/quiz/27155
Sample Questions
Q1) The text describes Toyota's top priority as focusing on quality. Explain how Toyota's operations capability would match up with its business strategy if its top priority had been to compete as the low-price car in the industry.
Q2) What is value-added analysis?
Q3) Scooters Corp. manufactures motorized scooters. Virtually all scooters are sold through direct appeals on the QVC shopping network. Overwhelmed by recent demand, top management is concerned about quality levels. What are three possible changes that the company can make to emphasize quality improvement?
Q4) Although companies are often classified as either goods producers or service providers, the boundary is often blurred. A)True
B)False
Q5) Services are more tangible, more customized, and more storable than products. A)True
B)False
Q6) Place utility refers to the location where a product is made.
A)True
B)False
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Understanding Accounting
Available Study Resources on Quizplus for this Chatper
258 Verified Questions
258 Flashcards
Source URL: https://quizplus.com/quiz/27156
Sample
Questions
Q1) What happens to assets, liabilities, and owners' equity when a company is operating profitably?
Q2) Marshall is preparing a statement of estimated profits and losses for a new product that has just been introduced by his company. The field of accounting that Marshall is working in is
A) managerial accounting.
B) auditing.
C) public accounting.
D) financial accounting.
E) bookkeeping.
Q3) What is owners' equity?
Q4) Which of the following ensures that the accounting equation is always kept in balance?
A) Credits
B) Debits
C) Double-entry accounting
D) Balance sheet
E) T-accounts
Q5) What is the formula for inventory turnover?
Q6) Describe the major elements of an income statement.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 12: Understanding Marketing Principles and Developing Products
Available Study Resources on Quizplus for this Chatper
324 Verified Questions
324 Flashcards
Source URL: https://quizplus.com/quiz/27157
Sample Questions
Q1) The four elements in the marketing mix are generally equally important.
A)True
B)False
Q2) What type of goods includes raw materials and integrated circuits?
A) Substitute products
B) Industrial goods
C) Consumer goods
D) Marketing goods
E) Disposable goods
Q3) A group of people may share an age category, income level, or some other segmentation variable, but their spending habits may be quite different.
A)True
B)False
Q4) Lextel Ltd. is involved in a market research study. They have already studied the current situation to determine which needs exist. Their next step is to begin collecting data.
A)True
B)False
Page 15
Q5) What are the psychographic variables used in market segmentation?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Pricing, Promotion, and Distributing Products
Available Study Resources on Quizplus for this Chatper
296 Verified Questions
296 Flashcards
Source URL: https://quizplus.com/quiz/27158
Sample Questions
Q1) What is meant by the term "product placement?"
A) Making sure that products are prominently visible on store shelves
B) Using brand-name products as part of the storyline of TV shows
C) Choosing the channel of distribution with the lowest overall cost
D) Placing free sample of products in consumers' mailboxes so they can actually try the product
E) Providing free product samples to influential consumers
Q2) Penetration pricing involves
A) setting prices in uneven dollar amounts.
B) setting an initial low price to establish a new product in the market.
C) taking advantage of the fact that consumers do not always respond rationally to stated prices.
D) setting an initial high price to cover new product costs and generate a profit.
E) setting a limited number of prices for certain categories of products.
Q3) What is public relations?
Q4) Explain the primary difference between a wholesaler and a sales agent.
Q5) The ultimate objective of any promotion is to sell more products.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 14: Money and Banking
Available Study Resources on Quizplus for this Chatper
226 Verified Questions
226 Flashcards
Source URL: https://quizplus.com/quiz/27159
Sample Questions
Q1) Which of the following changes have occurred in banking because of deregulation?
A) Large business firms have increased their reliance on bank loans.
B) Banks can now make whatever profits they can manage.
C) Banks are providing a narrower and more highly focused array of financial products to their customers than they did before deregulation.
D) Banks have increased the training given to employees.
E) Bank profits are now being sent to foreign financial companies.
Q2) The characteristics of money are
A) divisible, interchangeable, portable, and exchangeable.
B) durable, paper, coin, and stable.
C) interchangeable, divisible, paper, and banks.
D) durable, divisible, stable, and portable.
E) portable, divisible, durable, and interchangeable.
Q3) Financing new, untested businesses is risky, so the most likely route to financing would be to go to
A) a venture capital firm.
B) the Economic Development Bank.
C) an institutional lender.
D) the Industrial Development Bank.
E) a brokerage house.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 15: Finacial Decisions and Risk Management
Available Study Resources on Quizplus for this Chatper
330 Verified Questions
330 Flashcards
Source URL: https://quizplus.com/quiz/27160
Sample Questions
Q1) Why is preferred stock referred to as hybrid financing?
Q2) The three basic types of long-term financing are debt, equity, and hybrid financing.
A)True
B)False
Q3) Describe the primary short-term sources of funds.
Q4) A futures contract is an agreement to purchase a specified amount of a mutual fund at a given price on a set date in the future.
A)True
B)False
Q5) The terms "pledging accounts receivable" and "factoring accounts receivable" are essentially synonymous.
A)True
B)False
Q6) Installing a new sprinkler system is an example of A) risk retention.
B) risk avoidance.
C) risk transfer.
D) risk shift.
E) risk control.
To view all questions and flashcards with answers, click on the resource link above. Page 18