Question 1

How can entrepreneurs ensure that options improve organizational performance?

Accepted Answer

a.Employees need to fully understand the

Question 2

You can't build a successful team unless you understand your strengths and the best place for you at the company.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a reason for distributing equity among employees?

Accepted Answer

A) New companies often can't pay market rates for salary and wages 
B) Including some equity in the compensation package aligns the employee with the company 
C) The sense of ownership boosts morale 
D) Distributing equity among employees reduces the risk of hostile takeover 
E) Having some equity, the team sticks together during the rough times in the early launch phase 
A) New companies often can't pay market rates for salary and wages 
B) Including some equity in the compensation package aligns the employee with the company 
C) The sense of ownership boosts morale 
D) Distributing equity among employees reduces the risk of hostile takeover 
E) Having some equity, the team sticks together during the rough times in the early launch phase

Question 4

Why should you have one or two board members who can be considered independent?

Accepted Answer

A) So they can act in the interest of the principal owner 
B) They are not susceptible to potential conflicts of interest 
C) They usually make the final decisions 
D) They have a long list of business and professional contacts 
E) They will answer the majority of the entrepreneur's questions 
A) So they can act in the interest of the principal owner 
B) They are not susceptible to potential conflicts of interest 
C) They usually make the final decisions 
D) They have a long list of business and professional contacts 
E) They will answer the majority of the entrepreneur's questions

Question 5

Explain why company culture is important.

Accepted Answer

a.It is the key to building and growing

Question 6

Over 95% of entrepreneurs in the US report that their team members are the main source of seed financing.

Accepted Answer

A) True 
 B)False

Question 7

Entrepreneurs who are overly conscious of their own weaknesses are more likely to fail

Accepted Answer

A) True 
 B)False

Question 8

None of the following tools are usually considered a reward for "sweat equity," except:

Accepted Answer

A) Founder shares 
B) Option pool 
C) Restricted stock 
D) Stock appreciation rights 
E) Phantom stock 
A) Founder shares 
B) Option pool 
C) Restricted stock 
D) Stock appreciation rights 
E) Phantom stock

Question 9

Entrepreneurship is hard work but most entrepreneurs become millionaires in five years.

Accepted Answer

A) True 
 B)False

Question 10

If employees own equity in the company, they usually work harder.

Accepted Answer

A) True 
 B)False

Question 11

Early stage companies tend to be hierarchal.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following are not mentioned in the chapter as external team members?

Accepted Answer

A) Board of Directors 
B) Lawyers 
C) Accountants 
D) Angel investors 
E) Foreign partners 
A) Board of Directors 
B) Lawyers 
C) Accountants 
D) Angel investors 
E) Foreign partners

Question 13

Describe the balance between too much and too little communication with a board of advisors.

Accepted Answer

a.Don't email or phone every time you ha

Question 14

If the business is your idea, it is best if you are the CEO.

Accepted Answer

A) True 
 B)False

Question 15

It is a mistake to distribute the entire supply of options to existing employees.

Accepted Answer

A) True 
 B)False

Question 16

After you have started a business, it is a bad idea to combine your new job with working fulltime elsewhere.

Accepted Answer

A) True 
 B)False

Question 17

A talented entrepreneur should be able to substitute for an experienced management team.

Accepted Answer

A) True 
 B)False

Question 18

Inappropriate sources of members for Board of Advisors include:

Accepted Answer

A) Shareholders' representatives 
B) Entrepreneurs 
C) Individual with insights about your target customer 
D) Your professors 
E) Venture capitalists 
A) Shareholders' representatives 
B) Entrepreneurs 
C) Individual with insights about your target customer 
D) Your professors 
E) Venture capitalists

Question 19

What valuable contributions can your team members bring to your company?

Accepted Answer

a.Professional knowledge
b.Mon

Question 20

A study by Inc.500 found that many CEOS had what quality in common?

Accepted Answer

A) Patience 
B) An ability to work well under highly stressful conditions 
C) High risk tolerance 
D) A high IQ 
E) An ability to accept constructive criticism 
A) Patience 
B) An ability to work well under highly stressful conditions 
C) High risk tolerance 
D) A high IQ 
E) An ability to accept constructive criticism

How can entrepreneurs ensure that options improve organizational performance?

You can't build a successful team unless you understand your strengths and the best place for you at the company.

Which of the following is not a reason for distributing equity among employees?

Why should you have one or two board members who can be considered independent?

Explain why company culture is important.

Over 95% of entrepreneurs in the US report that their team members are the main source of seed financing.

Entrepreneurs who are overly conscious of their own weaknesses are more likely to fail

None of the following tools are usually considered a reward for "sweat equity," except:

Entrepreneurship is hard work but most entrepreneurs become millionaires in five years.

If employees own equity in the company, they usually work harder.

Early stage companies tend to be hierarchal.

Which of the following are not mentioned in the chapter as external team members?

Describe the balance between too much and too little communication with a board of advisors.

If the business is your idea, it is best if you are the CEO.

It is a mistake to distribute the entire supply of options to existing employees.

After you have started a business, it is a bad idea to combine your new job with working fulltime elsewhere.

A talented entrepreneur should be able to substitute for an experienced management team.

Inappropriate sources of members for Board of Advisors include:

What valuable contributions can your team members bring to your company?

A study by Inc.500 found that many CEOS had what quality in common?

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

The Business Planning Process

Building Your Pro Forma Financial Statements

Facing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Debt and Other Forms of Financing

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship: an Overview

Filters

Exam 6: Building the Founding Team

How can entrepreneurs ensure that options improve organizational performance?

You can't build a successful team unless you understand your strengths and the best place for you at the company.

Which of the following is not a reason for distributing equity among employees?

Why should you have one or two board members who can be considered independent?

Explain why company culture is important.

Over 95% of entrepreneurs in the US report that their team members are the main source of seed financing.

Entrepreneurs who are overly conscious of their own weaknesses are more likely to fail

None of the following tools are usually considered a reward for "sweat equity," except:

Entrepreneurship is hard work but most entrepreneurs become millionaires in five years.

If employees own equity in the company, they usually work harder.

Early stage companies tend to be hierarchal.

Which of the following are not mentioned in the chapter as external team members?

Describe the balance between too much and too little communication with a board of advisors.

If the business is your idea, it is best if you are the CEO.

It is a mistake to distribute the entire supply of options to existing employees.

After you have started a business, it is a bad idea to combine your new job with working fulltime elsewhere.

A talented entrepreneur should be able to substitute for an experienced management team.

Inappropriate sources of members for Board of Advisors include:

What valuable contributions can your team members bring to your company?

A study by Inc.500 found that many CEOS had what quality in common?

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

The Business Planning Process

Building Your Pro Forma Financial Statements

Facing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Debt and Other Forms of Financing

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship: an Overview

Filters