Exploring Small-Business Opportunities for Women and Minorities

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Questions and Answers

According to Industry Canada, how is a small business defined?

An independent business having fewer than 100 employees, not dominant in its market and revenues not more than $2 million.

What percentage of Canadian firms have fewer than 100 employees on staff?

98%

Which industries have the majority of small businesses?

Retail and construction

What are the benefits of a home-based business?

<p>More control over both their business and personal time.</p> Signup and view all the answers

What is the main reason why most businesses are small businesses?

<p>Preference for smaller operations</p> Signup and view all the answers

How many self-employed individuals are there in Canada?

<p>2.8 million</p> Signup and view all the answers

What is the main reason why small businesses fail?

<p>Inadequate business planning</p> Signup and view all the answers

Approximately what percentage of total employment in the private sector did small and medium-sized businesses account for in 2018?

<p>89.5%</p> Signup and view all the answers

What is one of the contributions of small businesses to the economy?

<p>All of the above</p> Signup and view all the answers

Approximately what percentage of small businesses close permanently within three years?

<p>15%</p> Signup and view all the answers

What is one of the reasons why small businesses fail?

<p>All of the above</p> Signup and view all the answers

What is the purpose of a business plan?

<p>All of the above</p> Signup and view all the answers

Which organization assists, counsels, and protects the interests of small businesses in Canada?

<p>The Business Development Bank of Canada (BDC)</p> Signup and view all the answers

What is venture capital?

<p>Money invested in a small business by another business or group of individuals in return for an ownership share</p> Signup and view all the answers

Which type of agreement involves one firm purchasing another firm's property and assets?

<p>Acquisition</p> Signup and view all the answers

What is a partnership between companies for a specific activity called?

<p>Joint Venture</p> Signup and view all the answers

Which type of merger involves two or more firms combining to form one company?

<p>Merger</p> Signup and view all the answers

What type of merger involves firms in the same industry and at the same stage of production?

<p>Horizontal</p> Signup and view all the answers

Which type of merger involves firms in different industries?

<p>Conglomerate</p> Signup and view all the answers

What is the purpose of partnering with a local firm in a joint venture?

<p>To share operation's costs and risks</p> Signup and view all the answers

When might a firm want to start a business in a foreign market?

<p>During a joint venture</p> Signup and view all the answers

What type of agreement involves two or more firms combining to form one company?

<p>Merger</p> Signup and view all the answers

What is the term for members of top management that make major corporate decisions and handle ongoing operations?

<p>Corporate Officers &amp; Managers</p> Signup and view all the answers

Which of the following is a benefit of franchising?

<p>Franchisees benefit from the franchisor's proven business model.</p> Signup and view all the answers

What is the world's 2nd largest franchise industry?

<p>Canada</p> Signup and view all the answers

What is a sole proprietorship?

<p>A business ownership in which the sole proprietor's status as an individual is not legally separate from their status as a business owner.</p> Signup and view all the answers

What is a corporation?

<p>A legal organization that has assets and liabilities separate from the assets and liabilities of its owners.</p> Signup and view all the answers

Who elects the board of directors in a corporation?

<p>Shareholders</p> Signup and view all the answers

What is the purpose of public (government) ownership of business?

<p>To provide essential services to the public</p> Signup and view all the answers

Where are most small businesses incorporated?

<p>In the provinces where they operate</p> Signup and view all the answers

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