Econ MiC Chapters 4-5 Study Guide PDF

Student-generated study guide; Made in Canada chapters 4-5: Business structures & The Entrepreneur ​ Create your own study guide here, as a whole class. You can make your own multiple choice questions on Quizzlet or Kahoot and link them here. Also make some Free-Response Questions typed right into t...

Student-generated study guide; Made in Canada chapters 4-5: Business structures & The Entrepreneur ​ Create your own study guide here, as a whole class. You can make your own multiple choice questions on Quizzlet or Kahoot and link them here. Also make some Free-Response Questions typed right into this document. Type your name next to the questions or links you put into this document. Each person should make three of each type of question (3 MCQ & 3 FRQ). Make them multiple difficulty-levels (one easy, four medium difficulty, and one hard) Here are some guaranteed FRQ questions that will appear on the upcoming test: 1.​ What are some of the main problems faced by entrepreneurs? I.e. why do many businesses fail? (4 marks) … see page 69, Made in Canada 2.​ What is an "industrial incubator," such as the Venture Center in Toronto, and in what ways do they help new/inexperienced entrepreneurs overcome the problems that can cause a business to fail? (5 marks) …pages 69-70, Made in Canada 3.​ Explain what a franchise is, give an example of a franchise, and list at least three industries that typically have franchises. (5 marks) … pages 72-74, Made in Canada 4.​ Describe one advantage that a private enterprise has over a crown corporation and one advantage that a crown corporation has over a private enterprise (for consumers in society). (2 marks) … page 106, Made in Canada Start your contributions below this line.​ -------------------------------------------------------------------- Jerry Wang MCQ 1. What is NOT a name of shares in a company that is publicly traded in an exchange? (HARD) a) Common Stock b) Preferred Shares c) Class A, B, C shares d) Private Bonds 2. Which of the following is a partnership? (MEDIUM) ​ a) Samsung ​ b) Saudi Armaco c) Ben & Jerry's d) State Grid Corporation 3. What is an example of a Crown Corporation? (EASY) ​ a) Canada Post ​ b) McDonalds ​ c) KFC ​ d) Southridge School FRQ: 1. Why would someone leave their job to become an entrepreneur? Discuss the benefits and disadvantages of being an entrepreneur? Many people leave their jobs to become entrepreneurs for various reasons, such as independence, financial potential, and personal fulfillment. Benefits of Being an Entrepreneur: ​ Independence & Control – Entrepreneurs make their own decisions and are not bound by a boss or corporate structure. ​ Financial Growth Potential – Unlike a fixed salary, business owners can scale their income based on success. ​ Pursuing Passion – Many entrepreneurs start businesses based on their interests or expertise. ​ Flexibility – They have control over work schedules and business direction. ​ Legacy & Impact – Entrepreneurs can build businesses that have a lasting effect on their community or industry. Disadvantages of Being an Entrepreneur: ​ Financial Risk – Business success is uncertain, and entrepreneurs may face losses or debt. ​ Long Working Hours – Unlike a 9-to-5 job, entrepreneurs often work long and unpredictable hours. ​ Lack of Benefits – No employer-provided health insurance, paid leave, or retirement plans. ​ High Stress – Managing business challenges, employees, and competition can be overwhelming. ​ Uncertain Income – Earnings can be inconsistent, especially in the early stages. 2. Explain how Franchise works. What are some cases where franchising is used in the business world? A franchise is a business model where an individual (franchisee) buys the rights to operate a business using a company’s (franchisor) brand, products, and systems. How It Works:  1.​ Franchise Agreement – The franchisee signs a legal contract outlining fees, rules, and operational requirements. 2.​ Initial Investment – The franchisee pays an upfront franchise fee to the franchisor. 3.​ Royalty Fees – Franchisees pay ongoing royalties (a percentage of revenue) to the franchisor. 4.​ Brand & Operational Support – The franchisor provides training, marketing, and operational guidance. Examples of Franchising in Business: ​ Fast Food Chains – McDonald's, Subway, KFC ​ Retail Stores – 7-Eleven, The UPS Store ​ Service-Based Businesses – Anytime Fitness, Hilton Hotels, Jiffy Lube Franchising is commonly used when companies want to expand quickly with minimal direct investment while leveraging franchisees' capital and local market expertise. 3. Explain what a corporation is. A corporation is a legal entity that is separate from its owners (shareholders). It can enter into contracts, own property, and be taxed independently. Key Features of a Corporation: ​ Limited Liability – Shareholders are not personally responsible for company debts. ​ Perpetual Existence – The corporation continues to exist even if owners or leadership change. ​ Ability to Raise Capital – Corporations can issue stock to raise funds. ​ Separate Legal Identity – The corporation can sue or be sued independently of its owners. Types of Corporations: ​ Public Corporation – Trades shares on stock exchanges (e.g., Apple, Tesla). ​ Private Corporation – Privately owned, not traded publicly (e.g., SpaceX, Chick-fil-A). ​ Nonprofit Corporation – Operates for social or charitable purposes (e.g., Red Cross). Armaan Sandhu: 1.​ Which of the following business types does the owner receive all profits and is responsible for all debts? a.​ Partnership b.​ Franchise  c.​ Sole Proprietor d.​ Corporation 2.​ The business that is managed by a board of directors is… a.​ Sole Proprietor b.​ Franchise c.​ Partnership d.​ Corporation 3.​ Which of the following is the most notable benefit of franchising to franchisors? a.​ Franchisors are paid royalty and franchisee fees b.​ They get to expand their social network by meeting young franchisees c.​ They will have more time to spend their time doing something else d.​ Franchisors gain no benefit from franchising 4.​ What are some of the similarities and differences between a sole proprietorship and a partnership? a.​ A sole proprietorship and a partnership are surprisingly similar because the owner(s) are responsible for all profits and debts and have unlimited liability. However, the difference is that a sole proprietorship only has one owner with unlimited liability, whereas, in a partnership, two or more owners combine resources and share the profits and debts. 5.​ How can franchising be disadvantageous to franchisees? a.​ The franchisee has to pay the franchisor royalty and other franchisee fees, which is considered a financial disadvantage. Furthermore, the franchisee has limited creative control over the franchise, as all locations must provide the same products and services to consumers; thus, the franchisee cannot change much about what their location offers. Moreover, even if the franchisee finds a supplier supplying the necessary goods to run the business at a lower price, the franchisee has to continue buying from the supplier that the overall franchise purchases from. 6.​ Why would some people want to become entrepreneurs? a.​ People become entrepreneurs for many different reasons; some of these reasons are listed here. Firstly, many people become entrepreneurs because they would instead work for themselves and enjoy independence. Second, many people have identified a gap in the services or products provided and believe they can fill it. Thirdly, entrepreneurs often have a possibility for financial success, which is another reason why many people become entrepreneurs. Lastly, many become entrepreneurs because they think they can benefit society with the goods or services they have created. Harley Liu: 1. Which of the following best describes a crown corporation? (easy) a)​ McDonald’s b)​ Costco c)​ Canada Post d)​ Honda 2. Which of the following characteristics best describes an entrepreneur? (hard) a)​ Safety first mentality b)​ Likes to gamble c)​ Willing to take risks d)​ None of the above 3. Which of the following is a benefit of a sole proprietor? (medium) a)​ More buying power b)​ More flexibility c)​ Higher rate of profit than a corporation d)​ All of the above 4. What are some advantages of a sole proprietor? (easy) Sole proprietors have direct control over their businesses which means they don’t have to make agreements with partners (no disagreements), they also have more flexibility in changing their business strategies or plans in response to a market change, and finally, they receive all profits since there are no business partners to share their profits with. 5. Why do some entrepreneurs have successful businesses while others fail? (medium) 6. What are the main reasons that private corporations are usually more competitive than crown corporations? (hard) Sevina Khangura: 1.​ What is the most “secure” type of share? (hard) a.​ Common shares b.​ Preferred shares c.​ Bonds 2. What type of business structure offers its owners limited liability while allowing them to participate in management decisions? (medium) A) Corporation B) Partnership C) Sole proprietorship D) Cooperative 3. Which of the following is a characteristic of a sole proprietorship? (easy) A) Limited liability B) Separate legal entity C) Multiple owners D) Single owner responsible for all profits and losses 4. Discuss the advantages and disadvantages of being a sole proprietor. How does the sole proprietorship business structure compare to other forms of business ownership, such as partnerships and corporations? (medium) 5. Explain the franchise business model. What are the benefits and drawbacks for both the franchisor and the franchisee? Provide examples of well-known franchises. (medium) 6. Analyze the concept of risk-taking in entrepreneurship. What are the potential risks and rewards associated with starting a new business, and how do successful entrepreneurs assess and manage these risks?(medium) ` Saije Hans 1.​ What do Entrepreneurs organize? a)​ Labour b)​ Land c)​ Capital d)​ All of the above 2. Entrepreneurs are people who recognize the ______ that exist in situations. a)​ Opportunities b)​ Struggles c)​ Consequences d)​ Benefit 3. What is the most the owner of a corporation can lose? a)​ Their house b)​ Their source of income c)​ Their car d)​ All of the above 4. Where are the four exchanges in Canada located? 5. In what ways are entrepreneurs dependent on others vs when are they independent? 6. What are the similarities and differences between private and government enterprises? ​ What are some examples of them in BC? Zaira: 1.​ What is a benefit of privatizing crown corporations? a)​ there is no benefit  b)​ Benefits are subjective to the industry the business is ran in c)​ Privitization increases efficiency d)​ Increases flexibility 2. An example of a franchise is… a)​ Mcdonalds b)​ Canada post c)​ Translink Canada d)​ Air canada 3. What types of business are votes dictated by the number of shares one has? a)​ Corporations b)​ Partnership c)​ Co-operative d)​ Franchise FRQs: 1.​ List some possible risks associated with starting your own business. 2.​ What are the benefits and disadvantages of franchising a company? 3.​ In which scenarios do you think that crown corporations should be privatized? Kamran: 1. Witch of the following is NOT a characteristic of a franchise A) Shared branding and marketing strategies B) Independent ownership and operation C) Payment of ongoing fees to the franchisor D) Training and support provided by the franchisor 2. Which of the following best describes a sole proprietorship? A) A business structure owned and operated by multiple partners. B) A business entity separate from its owner, with limited liability. C) A business owned and managed by a single individual. D) A corporation with shares traded publicly on the stock exchange. 3. Which statement best defines a partnership? A) A business structure where a single individual owns and operates the business. B) A business entity with shares traded publicly on the stock exchange. C) A business arrangement where multiple individuals share ownership, profits, and liabilities. D) A corporation with limited liability protection for its shareholders. 4. What defines a cooperative (co-op) business model? A) Ownership and operation by a single individual. B) A business structure where profits are distributed to shareholders. C) A collectively owned and democratically controlled enterprise by its members. D) A corporation with a hierarchical management structure. 5.What is a key benefit of a cooperative (co-op) business model? A) Limited liability protection for its members. B) Centralized decision-making by a single owner. C) Access to public stock markets for fundraising. D) Shared ownership and collective decision-making among members. Andaaz: 1. What are the similarities and differences between corporations and franchises? 2. Which of the following is a sole proprietorship? A.​ McDonalds B.​ Starbucks C.​ Chevron D.​ Personal Trainer 3. What are some characteristics you should have if you are desiring to be an entrepreneur? 4. Name three things that the venture center helps with for businesses? 5. Why might someone start their own business? A.​ They want to be their own boss B.​ They hate people C.​ They are lazy D.​ Wanna look cool 6. A corporation has… A.​ Lots of liability B.​ No liability C.​ Limited Liability D.​ Liability changes daily Brody ‍:🐱👓 1. What is a stock exchange? 2. Do you think governments should privatize Crown Corporations whenever possible? 3. What is a bond? 4. Which of the following is not a characteristic of a sole proprietorship? a) Limited liability b) Single ownership c) Easy formation d) Separate legal entity 5. What distinguishes a corporation from other forms of business entities? a) Unlimited liability for owners b) Limited liability for owners c) Sole ownership d) No legal formalities required for formation 6. Which type of corporation allows for the distribution of profits and losses directly to shareholders without corporate taxation? a) C Corporation b) Limited Liability Company (LLC) c) S Corporation d) Partnership Mira: Micah: 1.​ What are some reasons for privatizing a crown corporation? 2.​ Which of the following best describes an entrepreneur? a.​ They are focused and don’t notice the passage of time b.​ They hate their job c.​ They work regular 9-5 hours d.​ They don’t pay tax 3.​ What are some benefits of becoming a franchisee? 4.​ What is NOT a characteristic of a sole proprietorship: a.​ The owner keeps all the profits b.​ The owner is subject to full liability for the business c.​ It can be publicly owned  d.​ It is the cheapest and easiest to start. 5.​ What are some key differences between a sole proprietorship and a corporation? 6.​ Why does the government support crown corporations? a.​ For profits b.​ To provide service to unprofitable areas (such as delivering mail to antarctica) c.​ To compete with private companies d.​ Because they want to be kind Herbert: 1. Which of the following are considered crown corporations? (EASY) a) BC Hydro b) BC Transit c) Canada Post d) All of the above 2. Which of the following are NOT examples of a characteristic of an entrepreneur? (MEDIUM) a) Motivated b) Disciplined c) Perfectionist d) Risk-Taker 3. Which investment path would an entrepreneur most likely follow? (MEDIUM) a) High risk, high reward b) Medium risk, medium reward c) Low risk, low reward 4. Explain the advantages and disadvantages of a corporation. 5. What are some of the challenges that prevent entrepreneurs from being successful? 6. Which type of business do you think will end up becoming the most successful? Explain why. ANSWER KEY (Herbert):​ 1. D 2. C 3. B Ashton: 1. Which of the following are an example of a corporation? a) Sea to sky highway b) Coast capital c) Tesla d) Subway 2. Which primary motive is service, not profit? a) Cooperative b) Sole proprietorship c) Partnership d) Corporation 3. What's an example of a franchise? a) Van City b) Tim Hortons c) Uber d) Hot dog stand 4. Which of the following is an entrepreneur most likely to do? a) Work a 9-5 b) Work without worrying about the time c) Always worrying about the time d) none of the above 5. What is the most important reason entrepreneurs set up their business? 6. Would entrepreneurs want to work with someone? If yes, what type of people would they work with? Braeden Ciccone 1. Which one of these is NOT a franchise. a) Mcdonalds b) Walmart c) Subway d) KFC 2. An enterpenuer is….. a) individuals who start their businesses or who aggressively expand existing ones. b) someone who works a 9-5 lifestyle working for a big company. c)Someone who purchases items from a business 3. Which one of these is not are some problems that entrepreneurs face a) Lack of knowledge b) Too much money Ben Fruitman 1.​ Which is not a frnachise a.​ Ace hardware b.​ 7-elleven c.​ The UPS Store d.​ Walmart 2.​ Whis is not a coop a.​ mcDonsalds b.​ Sunkist c.​ Ocean spray d.​ True value hardware 3.​ Which is not a characteristic of an entrepreneur a.​ Go getter b.​ Motivated c.​ Hardworker d.​ gambler 4.​ What is an entrepreneur? a.​ a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so. 5.​ 6.​ Owen Lister 1.​ In which form of ownership do customers of a business own shares when they buy a product a)​ Partnership b)​ Co-op c)​ Corporation d)​ Franchise 2.​ In which two forms of ownership is liability unlimited a)​ Corporation & Co-op b)​ Franchise & Partnership c)​ Sole Proprietorship & Partnership d)​ Franchise & Corporation 3.​ What benefits does privatizing a crown corporation have? 4.​ What are some reasons an entrepreneur’s business fails?  5.​ How do entrepreneurs face the challenges of starting a business? 6.​ How do different forms of ownership relate to each other Andrew Lawson 1.​ Why might a Crown Corporation get privatized? a.​ Privatization will improve the performance of the crown corporation 2.​ Does a Franchisee get to make decisions with their store? a.​ Yes b.​ No Explanation: A franchisee can not make a lot of decisions but they can make some small decisions such as release dates for seasonal drinks. 3.​ What are 3 examples of Crown corporations a.​ CBC, Canada Post, and The Bank of Canada 4.​ Should someone start a business with a close friend? a.​ No because it can potentially ruin the relationship because of business decisions Zara Johal: 1.​ What are characteristics of a successful entrepreneur a.​ “Go getter”, unprepared b.​ Self confidence, motivation c.​ Risk taking, gambler 2.​ How many newly established businesses fail a year? a.​ 15 out of 17 b.​ 2 out of 3 c.​ 4 out of 5 d.​ 6 out of 13 3.​ What is the reason entrepreneurs fail? a.​ They fail to understand the market they’re a part of b.​ They take too many risks c.​ They don’t hire enough people d.​ They take too many vacations 4.​ What is the purpose of an industrial incubator? a.​ To provide favourable conditions/environment for new businesses to grow. It is a practical way to promote and support the new entrepreneurs skills and ideas. 5.​ List some pros and cons of a franchisee and franchisor 6.​ Why is it beneficial to run your own business? Sarah 1.​ Which of the following qualities describe an entrepreneur? (easy) A)​ Resilient B)​ Risk taker C)​ Responsible D)​ All of the above 2. What should you NOT do as a franchisee? (medium) A)​ Being responsible for the franchise B)​ Personally investigate the franchise C)​ Take risks D)​ Rely on the franchiser 3. When should the government nationalize a corporation? (medium) A)​ The industry is not part of social welfare B)​ The economy is stable C)​ Public expectations are unmet D)​ All of the above 4. Why might corporations be better than sole proprietors or partnerships? 5. Describe the three types of securities and explain their advantages and disadvantages. 6. Describe the two types of corporations (crown and business). AJ ABELL 1.​ What type of business model involves granting individuals the right to operate a business using a recognized brand and established business methods? ​ A) Sole proprietorship ​ B) Partnership ​ C) Corporation: ​ D) Franchise 2.​ Which of the following is an advantage of owning a franchise? ​ A) Complete control over business decisions ​ B) Lower startup costs ​ C) No need for brand recognition ​ D) Limited liability  3.​ What economic concept refers to the ability of an entrepreneur to create value by identifying and exploiting opportunities in the market? ​ A) Comparative advantage ​ B) Opportunity cost ​ C) Entrepreneurial profit ​ D) Marginal utility Keaton Why do some people recognize franchisees as entrepreneurs? ARIA KHEHRA 1.​ What type of business model distributes votes based on ownership not number of shares? a.​ Partnership b.​ Franchise c.​ Co-operation d.​ Corporation 2.​ Which of the following are reasons businesses may fail? a.​ Low time spent into business b.​ Misunderstanding of market c.​ Running out of money d.​ All of the above 3.​ Which of the following characteristics is/are NOT associated with the franchise business model? a.​ Limited creative opportunities b.​ Inexpensive start-up c.​ Reduced risk of failure d.​ All of the above 4.​ What are some advantages and disadvantages of being in a partnership vs. a sole proprietorship? 5.​ What are some reasons for the nationalisation of an industry? 6.​ What are the key differences between a partnership and a limited liability company (LLC) in terms of taxation and liability? OWEN MACK 1.​ What is a key trait that is NOT commonly associated with successful entrepreneurs? a.​ Persistence and resilience.  b.​ Adaptability. c.​ Risk avoidance. d.​ Opportunity seeking. 2.​ Which of the following is a reason why a business may fail? a.​ Lack of market research. b.​ Inadequate financial planning. c.​ Small market with low demand. d.​ All of the above. 3.​ In a corporation, how does voting work? a.​ One vote per shareholder. b.​ One vote per share. c.​ Only the board of directors gets to vote. d.​ They vote based on how involved in the business they are. 4.​ What are some attributes of a successful entrepreneur?​ Some attributes of a successful entrepreneur include ability to take risks, hark-work, adaptability, strong work ethic, good communication skills, knowledge, and a passion for their work. 5.​ What are the roles of a franchisee? The roles of a franchisee typically involve managing day-to-day operations, upholding brand standards set by the franchisor, ensuring customer satisfaction, hiring and training staff, and implementing marketing strategies to promote the franchise location. 6.​ What are the roles of a franchisor? The roles of a franchisor include developing and refining the business concept, providing training and support to franchisees, establishing and maintaining brand standards, marketing the franchise system, and continuously innovating to drive the success of the overall franchise network. Jeniya 1.​ What is not a benefit to industrial incubators? a) Good way to promote a new business b) Support ideas and skills of entrepreneurs c) Allows large businesses to expand at lower costs d) Access to resources and shared costs 2.​ Which is not an option for Individual entrepreneurs who want to go into business? a) Buying an existing business b) Work to high positions in corporations c) Franchising  d) Establish their own business 3.​ What is an advantage for franchising? a) Business is cost efficient b) Low upfront costs c) greater independent income d) A lot of autonomy to the business 4.​ What are the two main roles in a franchise business? 5.​ What are three reasons why businesses fail? 6.​ What is the difference between a corporation and a crown corporation? Torwin: 1.​ An entrepreneurs single most important characteristic is: risk taking a.​ T b.​ F - they must have a unique set of skills and characteristics that supports their business 2.​ Jai: although they operate under another franchise, they take many of the own responsibilities and dangers of running their own firm. They put money into the franchise and, depending on how successfully they manage the company, could make a sizable profit. Charlotte: 1. What are some examples of franchises? 2. 3. 4. 5. 6. Cannon: MCQ 1.​ What is the main reason why people want to be entrepreneurs? a)​ Make lot’s of money b)​ To become famous c)​ To work for themselves d)​ They are too lazy to work a 9-5 2. Which is NOT a characteristic of a successful entrepreneur? a)​ Lazy b)​ Risk-Taker c)​ Hardworking d)​ Organized 3. Which of the following statements best defines a Crown corporation? A)​ A privately-owned company that operates under government regulations. B)​ A corporation that is owned and operated by the monarch of a country. C)​ A publicly-owned entity established by the government to undertake commercial activities on behalf of the state. D)​ A corporation exclusively dedicated to manufacturing crowns for ceremonial purposes. FRQ 1.​ Are franchisees considered to be entrepreneurs? Why? 2.​ What are the benefits of privatizing a crown corporation? 3.​ What are some advantages and disadvantages for both the franchisor and the franchisee in franchising? Jason: Which of the following is an example of a sole proprietorship? a. A local bakery owned by one person b. A large multinational corporation c. A partnership between two friends d. A cooperative owned by its members Which of the following statements is true regarding partnerships? a. Partnerships have limited liability for their owners. b. Partnerships are required to have a formal board of directors. c. Partnerships are exempt from paying taxes. d. Partnerships are often easier to form than corporations. Which of the following characteristics is typically associated with a public corporation? a. Ownership by a small group of investors b. Limited access to capital markets c. Shares traded on a stock exchange d. Owned by one person Describe the key features of a sole proprietorship and provide an example of a business that operates under this structure. Compare and contrast a partnership and a corporation in terms of ownership, liability, and taxation. Analyze the factors that influence a business owner's decision to choose between a partnership and a corporation as the legal structure for their business. Consider aspects such as liability, taxation, governance, and capital raising. Colton MCQ 1.​ Which factor is most likely to contribute to an entrepreneur's success? a.​ High levels of debt b.​ Averse to change c.​ Lack of passion d.​ Persistence and determination 2.​ What role does creativity play in entrepreneurship? a.​ It is irrelevant b.​ It is essential for problem-solving and innovation c.​ It only matters in certain industries d.​ It can hinder progress 3.​ What role does a board of directors play in a corporation? a.​ They manage day-to-day operations b.​ They represent the interests of shareholders c.​ They are responsible for issuing dividends d.​ They oversee regulatory compliance FRQ 1.​ What benefits are there to an Industrial Incubator? 2.​ Compare and contrast the advantages and disadvantages of partnerships and corporations as forms of business organization. 3.​ Compare and contrast the traits of successful entrepreneurs with those of traditional employees. Panna Sodhi MCQ: 1. Which of the following best describes a crown corporation? a) McDonald’s b) Costco c) Canada Post d) Honda 2. What are some characteristics you should have if you are desiring to be an entrepreneur? a) Risk-averse b) Motivated c) Lazy d) Hate working with others 3. What do Entrepreneurs organize? a) Labour b) Land c) Capital d) All of the above FRQ: 1. Discuss the advantages and disadvantages of being a sole proprietor. How does the sole proprietorship business structure compare to other forms of business ownership, such as partnerships and corporations? 2. What are some benefits of privatizing a crown corporation? 3. Explain the franchise business model. What are the benefits and drawbacks for both the franchisor and the franchisee? Rihanna: 1.​ What is the rate of failure among newly established businesses? a.​ high (⅘) b.​ low (⅕) c.​ medium (⅗) 2.​ Which of these is not a characteristic of a Co-operative business a.​ the democratic and patronage dividend acts as a magnet to people, making them loyal members b.​ Unlimited liability c.​ each member gets the same voting rights d.​ higher quality service 3.​ Who controls a cooperation? (can be more than one) a.​ everyone has equal control b.​ common shareholders  c.​ owners d.​ government 4.​ Which type of business is the most expensive to start up? a.​ Sole proprietorship b.​ Partnership c.​ Corporation 5.​ How can a sole proprietor raise its capital? a.​ Bring one or more partners into the business and share the profits and losses. With this, they can undertake operations on a larger scale and handle responsibilities more efficiently. They can also gain expertise from others through decisions and discussions. 6.​ What are some key reasons as to why businesses fail? a.​ Hard work alone isn't sufficient enough to secure success, you also must have expertise and experience in the market. some entrepreneurs fail to understand the market for which they are selling their goods and services. Also to be a strong business you must have an entrepreneur with the right characteristics guiding it to keep it successful and efficient. Adam Woodhead MCQ 1)​ What is a franchisor? a)​ Someone who buys from a franchised business b)​ Someone who manages a business and sells portions to franchisees c)​ Someone who franchises a business d)​ Someone who works with another to start a business from scratch 2)​ What is a sole proprietor? a)​ A person who starts a business from scratch by themselves, and have no government involvement b)​ A pair of workers who make a business without government intervention c)​ A sole franchise d)​ A corporation business 3)​ Who are the main people that work with a franchisor? a)​ sole proprietors b)​ corporations c)​ business owners d)​ franchisees FRQ 1.​ What makes entrepreneurs different from employees? a.​ entrepreneurs start businesses from scratch, and work on their own time tables using their own skills and knowledge to create and expand a business. 2.​ What is a franchise and how does it work?  a.​ a franchise is a business model that is managed by a franchisor and bought by a franchisee in the use of expanding a business far beyond what it could be 3.​ What is a sole proprietor? a.​ Someone who starts a business alone with no government help. When the sole proprietor dies so does the business usually Gurfathe: What is a trait entrpuners usually dont have? a)​ Persistinace b)​ Laziness c)​ Hardworking d)​ Creative Which of the following is not a corporation a)​ Amazon b)​ Apple c)​ Mcdonalds d)​ BC Hydro What is something a smart entrepreneur won’t do a)​ Take an uneducated risk b)​ Study a market before investing into the business c)​ Ask experts for help d)​ Lay out all of their financial plans What is the Benefit of becoming an entrepreneur? Why are entrepreneurs so vauled in our society? What is the difference between a corporation and a sole proprietorship? Ayden Karan Which of the following statements is true regarding partnerships? a. Partnerships have limited liability for their owners. b. Partnerships are required to have a formal board of directors. C. Partnerships are often easier to form than corporations. d. Partnerships are exempt from paying taxes. Out of these 5 corporations, which one is an actual franchise? Google Tesla Subway Apple Netflix Which of the following options best describes a Crown Corporation? A) A private company that operates independently of the government, focusing primarily on profit maximization. B) A non-profit organization that relies solely on government grants and private donations to operate. C) A business owned by the government, created to pursue policy objectives and provide services that are not being met by the market. D) A multinational corporation that has been granted a royal charter, allowing it to operate across different countries with special privileges. FRQ What is a entrepreneur:  - A person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so. What are some problems entrepreneurs face - High levels of stress, struggling to find product market fit and finding customers. Overworking and becoming burned out. Lack of cash flow and finding the right business model. Difference between Franchise and Crown Corporations -Franchisors usually have a lower operating cost with less overall risk compared to corporate-owned chain restaurant companies. Trinity King What trait does an entrepreneur NOT have? a) Hardworking b) Risk taker c) Lazy d) Determination What is the rate of failure for new businesses? a) Low ⅕ b) High ⅘ c) medium ⅖ What is an example of a sole proprietorship? a) Ben & Jerry's b) Microsoft c) Starbucks d) Serena's Tutoring What arguments are there for and against the privatization of crown corporations? Proponents argue that privatization can bring greater efficiency, reduce taxpayer burden and spur innovations. While opponents emphasize the importance of public control, the potential negative social impact and the risk of reducing access to essential services for vulnerable populations. What are some problems faced by entrepreneurs? The rate of failure among newly established businesses is very high. Hard Work alone is not enough to prevent some businesses from failing. Lack of effort and time can cause a business to fail. They may have little to no knowledge on the business and how to run it which can cause failing to understand the market. How do crown corporations differ from corporations? Crown corporations are government owned entities that aim to serve public interest, while corporations are privately owned businesses focused on generating profit for their shareholders. Tommy Hilditch: ​ MCQ 1.​ Which of the following is NOT a characteristic of a Sole Proprietorship? a.​ The owner has unlimited liability b.​ It is the simplest form of business ownership c.​ Ownership can be easily transferred to another person d.​ The owner is entitled to all profits 2.​ What is the primary advantage of forming a corporation, over a sole proprietorship? a.​ Less government regulations b.​ Limited liability for owners c.​ Easy to start with limited capital d.​ Direct control by the owner 3.​ Which business structure is owned by shareholders and operated by a board of directors? a.​ Sole Proprietorship b.​ Partnership c.​ Corporation d.​ Cooperative ​ FRQ 1.​ Explain key differences between a partnership and a corporation in terms of ownership, liability and decision making? Provide examples to support your response. 2.​ Provide 3 examples of successful entrepreneurship characteristics, explain how these characteristics translate into a successful business. Ainsley Young 1.​ Which of the following is a primary advantage of a sole proprietorship?​ a) Limited liability​ b) Easy to start and manage​ c) Unlimited lifespan​ d) Ability to sell stocks to raise capital​ 2.​ Which business structure is characterized by shared decision-making, unlimited liability, and potential conflicts between owners?​ a) Corporation​ b) Sole proprietorship​ c) Partnership​  d) Franchise​ 3.​ Why do many entrepreneurs choose to form a corporation rather than a sole proprietorship?​ a) To avoid paying taxes​ b) To have unlimited liability​ c) To raise capital by selling stock and limit personal liability​ d) To reduce government regulations​ Short Free-Response Questions 1.​ Explain the difference between a general partnership and a limited partnership. What are the risks and benefits of each? 2.​ Why might an entrepreneur choose to start a franchise rather than an independent business? Provide at least two advantages and one disadvantage of owning a franchise. Daya Sohi MCQ: 1) What is one key advantage of forming a corporation over a sole proprietorship? a)​ Simplicity of formation b)​ Limited liability for owners c)​ Direct control by a single owner d)​ Minimal regulatory requirements 2) Which of the following best describes a franchise? a)​ A business owned and operated by a single individual with full control over decisions b)​ A business that grants individuals the right to operate under its established brand and business model c)​ A partnership where two or more individuals share equal responsibility and liability d)​ A publicly traded corporation with multiple shareholders 3) Which business structure is best suited for raising large amounts of capital through the sale of shares? a)​ Sole proprietorship b)​ Partnership c)​ Corporation d)​ Cooperative FRQ: ➔​ Explain three major differences between a sole proprietorship and a partnership. Provide examples of situations where each business structure would be beneficial  ➔​ What are some common challenges entrepreneurs face when starting a business, and what strategies can they use to overcome them? Jayden Mulholland MCQ (3 questions): 1.​ What is Privatization? a.​ To make a corporation no longer under the control of government b.​ To limit the number of consumers to a small group of people c.​ To make a company under the control of the government d.​ To remove a company from the global market 2.​ How does voting traditionally work in a corporation in comparison to a co-operative? a.​ Corporations have one vote per share, co-operatives have one vote per owner b.​ Corporations have one vote per owner, co-operatives one vote per share c.​ Corporations and Co-operative both do one vote per share d.​ Corporations and Co-operative both do one vote per owner e.​ Corporations have one vote per share, and co-operatives don’t have voting 3.​ Easiest type of business to start and manage: a.​ Franchise b.​ Sore Proprietor c.​ Partnership d.​ Co-operative FRQ (2 questions): 1.​ Why might someone support privatization? People argue that sometimes government owned corporations are no longer needed as the purpose is outdated or has been fulfilled by another private company better, so by making them private as well it forces them to fix the issues in the company (for example by providing better customer service) and react to consumer demand. 2.​ What benefits do franchises have for the consumer? Consumers can expect to find the same good with the same quality at any of the franchises locations, allowing them to buy a desired product from anywhere they want. _(name)_ MCQ -​ FRQ Aurian What is one of the biggest financial challenges faced by new entrepreneurs? (EASY) a) Too many investors b) Difficulty securing startup funding c) Too many government grants d) Lack of competition Which of the following is an advantage of a cooperative business model? (MEDIUM) a) Control is centralized with one owner b) Profits are distributed among members c) Members have no say in decisions d) It operates like a government-owned business A business that operates under a well-known brand name and pays royalties to a parent company is known as a: (HARD) a) Corporation b) Partnership c) Franchise d) Sole proprietorship Why might a government choose to create a Crown corporation instead of allowing a private company to run a service? a) To ensure essential services are provided to all citizens b) To reduce government control over the economy c) To allow shareholders to make higher profits d) To encourage monopolies in the private sector Compare and contrast public corporations and private corporations. What are the key differences in their ownership structure, goals, and advantages/disadvantages? Public corporations sell shares to the public and focus on shareholder value, while private corporations are owned by a few individuals and have more control but limited funding. Why do many new businesses struggle in their first few years? Identify at least three major challenges that new business owners face and explain how they can overcome them. Lack of funding can be solved through loans, investors, or a lean business model. Standing out requires market research and a unique value proposition. Entrepreneurs should seek mentorship, training, and create strong business plans. Explain the key differences between common shares, preferred shares, and bonds. How does each security benefit investors, and what are the risks involved? (HARD) ​ Common shares give voting rights and potential high returns but come with high risk. ​ Preferred shares offer fixed dividends and less risk but have no voting rights. ​ Bonds are loans to the company with regular interest payments and lower risk, but they provide lower returns than stocks. Ethan Dusangh: Which of the following is NOT typically considered a characteristic of an entrepreneur? A) Risk-taking ability B) Preference for routine and stability C) Innovative thinking D) Strong leadership skills Which of the following statements best describes a cooperative? A) A business owned by a single individual who makes all decisions and retains all profits B) A business model where a parent company grants licenses to independent operators to run locations under its brand C) A business owned and democratically controlled by its members, who share in the profits and decision-making D) A legal entity separate from its owners, offering limited liability to its shareholders Which of the following is an example of a franchise? A) A family-owned bakery with a single location B) A technology startup developing new software C) A local coffee shop independently owned and branded D) A fast-food restaurant operating under a well-known global brand with multiple independently owned locations FRQ: Explain the role of the franchisor and franchisee? How are these roles different ? The franchisor owns the brand, business model, and intellectual property, providing franchisees with the right to use their system, training, and support in exchange for fees. The franchisee is an independent business owner who operates a franchise location, following the franchisor's guidelines and paying ongoing royalties and fees. What are the key advantages and disadvantages of operating a business as a sole proprietorship? A key advantage of a sole proprietorship is complete control over business decisions and all profits. However, the owner faces unlimited personal liability for business debts and legal actions, which can be a significant risk. Joel Yul 1. Which of the following is a characteristic of a sole proprietorship? A) Limited liability for the owner B) Easy to transfer ownership C) Shared decision-making D) Owner has full control and unlimited liability 2. What is one major disadvantage of a partnership compared to a corporation? A) Partners do not share profits equally B) Partnerships require formal public registration C) Partners have unlimited liability for business debts D) Partnerships have double taxation 3. Which type of business structure is most likely to protect its owners from personal liability for debts? A) Sole proprietorship B) General partnership C) Corporation D) Limited partnership 1. Explain the differences between a partnership and a corporation in terms of ownership, liability, and taxation. Include at least two pros and two cons of each structure in your response. 2. Describe the role of entrepreneurship in a market economy. Provide examples of how entrepreneurs contribute to innovation, job creation, and competition, and discuss potential risks they face when starting a business. (answers: D,C,C) Emily MCQ 1. Which of the following is a cooperative business? A) Starbucks B) Ocean Spray C) Nike D) Safeway 2. What is the advantage of being a sole proprietor? A) Low risk of failure B) Public ownership C) Easiest business to start D) The owner doesn't need to always be present 3. What is the best reason a business might do better than another when competing in the same industry? A) More staff hired B) Owned and managed by one person C) Enough capital to sustain the business D) Willingness to fail FRQ 1. What is a way that new businesses can get help when starting? 2. What are some benefits and disadvantages of being a franchisee? 3. Which type of business form would someone not extremely knowledgeable choose to start? Why? Parker wells MCQ What is the characteristic of a sole proprietor a)​ The owner Has one vote per share b)​ Decides how Mr. Faz spends his money c)​ The owner's Primary motive is service, not profit d)​ The owner receives all of the profits and is responsible for all debts What is an example of a co-operative business a)​ Law firm b)​ Credit union c)​ McDonald's d)​ Babysitting Which is not a quality of a entrepreneur a)​ A go-getter attitude b)​ Being objective  c)​ Being impulsive d)​ Working hard FRQ 1.​ Why is money not one of the main drivers for entrepreneurs when pursuing a product. 2.​ What are some of the advantages to becoming a franchise and having franchises? What are some of the possible challenges you could encounter? Kiana MCQs: 1. What are some of the characteristics of a successful entrepreneur? a.​ Determination b.​ Lazy c.​ Harkworking d.​ All of the above e.​ Just a and c 2. What are some disadvantages of corporations? a.​ legal protection b.​ strict regulation c.​ limited liability d.​ lower tax rate 3. What is the reason to become an entrepreneur? a.​ to work 9-5 b.​ to work with a partner c.​ to work for yourself d.​ to make a lot of money FRQs 1.​ Give two examples of franchises in your area and three advantages of owning one? 2.​ Are franchisees considered entrepreneurs? Why or why not? Marissa MCQ: 1. What is an example of a sole proprietorship? a.​ Coca-Cola b.​ Local Coffee Shop c.​ Tim Hortons d.​ Via Rail 2. Under what conditions-if any-should governments nationalize corporations? a.​ A private company can't do the job at an affordable price b.​ When the corporation is running well on its own c.​ A private company can do the job better and cheaper 3. In what industries are there franchises? a.​ Food and Beverage b.​ Retail c.​ Accounting Firms d.​ A and B only 1. What are 3 advantages and 3 disadvantages of Sole Proprietorship? 2. Why is it not recommended for entrepreneurs to work with friends? Lara Milford MCQ 1. What is a key advantage of a franchise compared to starting an independent business? A) The franchisee has complete control over all business decisions B) The franchisor provides brand recognition and business support C) Franchisees do not have to pay any fees to the franchisor D) Franchise businesses are guaranteed to succeed 2. Which of the following is NOT a common reason why small businesses fail? A) Lack of financial management skills B) Strong competition from larger businesses C) The government forces them to shut down if they make no profit within 5 years D) Poor market research and planning 3. Which of the following is a characteristic of a Crown Corporation? A) It is privately owned and operated for profit B) It is owned by the government and provides public services C) It is always a non-profit organization  D) It only operates in the technology industry FRQ 1. Explain the main differences between a sole proprietorship and a partnership. Give one advantage and one disadvantage of each type of business structure. 2. Describe how government regulations impact private enterprises and crown corporations differently. Provide an example for each type of business. Molly Zhang MCQ 1.​ Which of the following is considered a factor of production? a.​ Technology b.​ Labor c.​ Government Policies d.​ Tourism 2.​ What is a key characteristic of a mixed economy? a.​ Complete government control b.​ No private ownership c.​ Combination of free market and government intervention d.​ Only state-run enterprises exist 3.​ Which type of business organization has the highest level of personal liability? a.​ Corporation b.​ Partnership c.​ Sole Proprietorship d.​ Limited Liability Company (LLC) FRQ 1.​ Discuss the role of government regulation in a mixed economy. What are some benefits and drawbacks? 2.​ Explain how trade agreements impact domestic industries. Use real-world examples of both benefits and challenges. Hilary MCQ What was a key factor in the development of Canada’s economy in the early 20th century?​ a) The discovery of oil in Alberta​ b) The rapid expansion of the railway system​ c) The adoption of the metric system​ d) The abolition of tariffs on imports​ How did government policies influence industrial growth in Canada?​ a) By reducing taxes on foreign imports​ b) By implementing high tariffs to protect domestic industries​ c) By discouraging immigration to limit labor competition​ d) By prioritizing agricultural expansion over manufacturing​ Which industry played a major role in shaping Canada's workforce during this period?​ a) The technology sector​ b) The service industry​ c) The manufacturing industry​ d) The space industry FRQ Describe the role of immigration in Canada's industrial expansion during this period. What challenges did immigrants face in the workforce?​ ​ Immigration played a significant role in Canada's industrial expansion by providing a steady labor force to meet the demands of growing industries. Many immigrants found jobs in factories, railways, and mining sectors. However, they often faced challenges such as poor working conditions, low wages, and discrimination. Additionally, language barriers and limited access to workers' rights made it difficult for them to improve their living standards.​ How did Canada’s natural resources contribute to its economic development, and what were some environmental consequences of this reliance?​ ​ Canada’s vast natural resources, such as timber, minerals, and oil, contributed significantly to its economic development by supporting industries like logging, mining, and energy production. These industries created jobs and increased exports, strengthening the country’s economy. However, this reliance also led to environmental consequences, including deforestation, pollution, and resource depletion. Over time, concerns about sustainability and conservation efforts became more prominent in government policies.​ Kaylee MCQ Which business structure provides limited liability to its owners? ​ a) Sole proprietorship​ b) Partnership​ c) Corporation​ d) Franchise What is the primary difference between a general partnership and a limited partnership? ​ a) A general partnership has only one owner, while a limited partnership has multiple owners​ b) In a limited partnership, at least one partner has limited liability while the others have full liability​ c) A general partnership is taxed at a lower rate than a limited partnership​ d) Limited partnerships cannot operate internationally Which is a key advantage of a franchise model for the franchisee? ​ a) Complete control over business decisions​ b) Established brand recognition and support from the franchisor​ c) No upfront costs​ d) Exemption from all legal and regulatory requirement FRQ Compare and contrast the advantages and disadvantages of a sole proprietorship versus a corporation. Provide at least two points for each business structure. A sole proprietorship is easy to start and gives the owner full control but comes with unlimited liability and limited access to funding. In contrast, a corporation provides limited liability and easier access to capital but is more complex and subject to double taxation. While sole proprietorships suit small businesses, corporations are better for large-scale growth. Explain the role of entrepreneurs in economic development. Entrepreneurs drive economic growth by creating jobs, fostering innovation, and increasing competition. Their businesses contribute to GDP by introducing new products and services, enhancing productivity, and attracting investment. Through risk-taking and problem-solving, they help economies expand and adapt to changing market demands. Eshaan What is a characteristic of a Sole proprietorship A)​ The business is individually owned and operated B)​ 0 corporate tax C)​ Owners are fully responsible for any debts and liabilities D)​ All of the above What are common reasons businesses fail A)​ Lack of investors B)​ Lack of knowledge in the market C)​ Too much government taxing D)​ All of the above Franchises are most common in which industries A)​ Retail B)​ Automobile C)​ Fast food D)​ All of the above The main difference between an enterprise and a crown corporation is… A)​ An enterprise is solely profit base and not controlled by the government whereas a crown corporation is focused on benefiting society as a whole and is controlled by the government B)​ An enterprise is non-profit based and controlled by the government whereas a crown corporation is focused on making profits to benefit society and is not controlled by the government C)​ An enterprise is funded by the government and tax payers money D)​ Crown corporations are funded by private investors, loans, and revenue One of the things that The Venture Center provides to small businesses include  A)​ Premade business models B)​ A loan to help start up your business C)​ Free rent D)​ Development officer Answers: (D,B,D,A,D) FRQ 1)​ In a sole proprietorship, if an issue is addressed and no action is taken by the owner, and an employee is injured as a result, who is responsible for the damages and why? 2)​ What are the differences between a franchise and a cooperative business and in what way are they the same Callum 1. What is the most common type of business structure in Canada?​ a) Corporation​ b) Sole Proprietorship​ c) Partnership​ d) Cooperative 2. Which of the following is a characteristic of a corporation in Canada?​ a) Owners have unlimited liability​ b) It is taxed at a personal income tax rate​ c) It is a separate legal entity from its owners​ d) It requires fewer formalities than a partnership 3. Which of the following is the best description of the "entrepreneurial mindset"?​ a) A belief that only a select few are capable of starting successful businesses​ b) A risk-averse attitude toward decision-making and management​ c) A focus on creating innovative solutions to problems and adapting to change​ d) A tendency to avoid financial risks by investing in low-risk ventures 1. Explain the main difference between a sole proprietorship and a partnership in terms of liability and decision-making. 2. Describe the key advantages and disadvantages of operating a business as a corporation. 3. How does the role of an entrepreneur differ from that of a manager, and why are these differences important for the success of a new business?