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This test has a total maximum score of 100 marks. Please answer the multiple choice questions on the test paper by selecting the one best answer to each question. Please answer the short answer and paragraph questions in the test booklet provided. 1. When comparing small businesses to their larger competitors, it is clear that: A) bigger is always better. B) small firms can always outperform big firms on a level playing field. C) small firms often can offer more personalized customer services than big firms. D) small firms are slower to respond to opportunities than are large firms. 2. Insider trading involves: A) an Internet activity that establishes a barter exchange system between businesses. B) investors using private company information to further their own fortunes. C) the exchange of assets between companies in the same industry. D) a payment or reward for socially conscious behaviour. 3. Mel is a major stockholder in Precision Transmission Services (PTS), a nationwide network of transmission repair shops founded by his father. Currently, PTS stock is sold on the open market, but Mel has talked to several relatives about his desire to get all of the PTS stock back in his family's hands. Mel is interested in: A) taking the firm private. B) a hostile takeover in the firm. C) converting the firm to a general partnership. D) forming a master limited partnership. 4. In a limited liability partnership, each partner's risk of losing personal assets is: A) limited to the amount that partner invested in the company. B) limited to losses that result from their own acts and omissions and the acts and omissions of those who work under their supervision. C) determined entirely by the maximum loss provision established by the articles of co-partnership. D) nonexistent. 5. The importance of entrepreneurs to our economy is found in their: A) impact on the political process. B) ability to create jobs for others. Page 1 C) contributions of money to organizations that help people in need. D) ability to influence national macroeconomics polices. 6. The largest source of capital for entrepreneurs is usually from A) venture capitalists. B) loansharks. C) provincial and municipal governments. D) personal savings. 7. After developing a code of ethics, it should be communicated to: A) everyone with whom the business has dealings. B) the police in jurisdictions where the business has operations. C) all levels of management. D) stockholders. 8. Lamont wants to improve his chances to be a successful entrepreneur and so he has written a business plan. One advantage of developing this plan is that it: A) meets federal reporting requirements of Revenue Canada. B) insures financing will be available from the venture capitalists.... View Full Document

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