Question 1

It often takes four months or more to identify and hire key employees.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following is true about teams?

Accepted Answer

A)  Teams help you evaluate feedback from outsiders. 
B)  Teams increase your contact network exponentially. 
C)  Teams increase your revenue. 
D)  Teams provide you with moral support. 
E)  All of the above 
A)  Teams help you evaluate feedback from outsiders. 
B)  Teams increase your contact network exponentially. 
C)  Teams increase your revenue. 
D)  Teams provide you with moral support. 
E)  All of the above E

Question 3

Why should you have one or two members of your Board of Directors 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 B

Question 4

Which of the following should an entrepreneur do when creating a venture?

Accepted Answer

A)  Expropriate her current employer's intellectual property 
B)  Use her employer's resources for the new venture 
C)  Notify her current employer about the intention to create a new venture 
D)  Spend all her time working for the new venture 
E)  Live off her savings 
A)  Expropriate her current employer's intellectual property 
B)  Use her employer's resources for the new venture 
C)  Notify her current employer about the intention to create a new venture 
D)  Spend all her time working for the new venture 
E)  Live off her savings

Question 5

Over 95% of entrepreneurs in the US report that their co-founders are the main source of seed financing.

Accepted Answer

A) True 
 B)False

Question 6

How much, according to the National Restaurant Association, do restaurants generate in net income before taxes on average, approximately?

Accepted Answer

A)  2.5% 
B)  4.5% 
C)  8.5% 
D)  15% 
E)  25% 
A)  2.5% 
B)  4.5% 
C)  8.5% 
D)  15% 
E)  25%

Question 7

According to Inc. 500, what percent of entrepreneurs start businesses with their friends or family members?

Accepted Answer

A)  Less than 5% 
B)  About 10% 
C)  About 20% 
D)  Approximately 40% 
E)  More than 65% 
A)  Less than 5% 
B)  About 10% 
C)  About 20% 
D)  Approximately 40% 
E)  More than 65%

Question 8

Co-founders of a start-up should work on every task and decision together.

Accepted Answer

A) True 
 B)False

Question 9

What opportunities can a young company offer its potential team members?

Accepted Answer

A)  Growth into higher management positions 
B)  Above average market salaries 
C)  More attractive social benefits packages 
D)  Secure and stable jobs 
E)  All of the above 
A)  Growth into higher management positions 
B)  Above average market salaries 
C)  More attractive social benefits packages 
D)  Secure and stable jobs 
E)  All of the above

Question 10

What are the disadvantages of distributing founder shares equally among all co-founders?

Accepted Answer

A)  The lack of a primary shareholder slows down the decision making process 
B)  CEO may be doing as much work as CEOs of comparable companies, but have less potential upside 
C)  Such distribution makes unwanted acquisitions easy 
D)  A and B 
E)  A and C 
A)  The lack of a primary shareholder slows down the decision making process 
B)  CEO may be doing as much work as CEOs of comparable companies, but have less potential upside 
C)  Such distribution makes unwanted acquisitions easy 
D)  A and B 
E)  A and C

Question 11

What is the minimum expected level of lawyers' fees?

Accepted Answer

A)  $50/hour 
B)  $100/hour 
C)  $150/hour 
D)  $200/hour 
E)  $250/hour 
A)  $50/hour 
B)  $100/hour 
C)  $150/hour 
D)  $200/hour 
E)  $250/hour

Question 12

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

Question 13

Early stage companies tend to be hierarchal.

Accepted Answer

A) True 
 B)False

Question 14

What attribute characterizes "restricted stock"?

Accepted Answer

A)  Does not grant voting rights 
B)  Cost less per share 
C)  Become vested over time 
D)  Has a reduced interest rate 
E)  Higher liquidation priority than unsecured debt 
A)  Does not grant voting rights 
B)  Cost less per share 
C)  Become vested over time 
D)  Has a reduced interest rate 
E)  Higher liquidation priority than unsecured debt

Question 15

Which of the following should the founder of the venture do first when deciding whether or not to be the CEO of his company?

Accepted Answer

A)  Ask for his/her friends opinion 
B)  Take at least three personality tests 
C)  Review his/her resume 
D)  Work as a hired manager for at least 4 years 
E)  Consult with his/her team members 
A)  Ask for his/her friends opinion 
B)  Take at least three personality tests 
C)  Review his/her resume 
D)  Work as a hired manager for at least 4 years 
E)  Consult with his/her team members

Question 16

Stock appreciation rights of employees accrue only if:

Accepted Answer

A)  The stock price decreases 
B)  Combined with options 
C)  The employees perform well 
D)  The stock price increases 
E)  None of the above 
A)  The stock price decreases 
B)  Combined with options 
C)  The employees perform well 
D)  The stock price increases 
E)  None of the above

Question 17

If you decide to start a venture, you should notify your current employer as soon as possible.

Accepted Answer

A) True 
 B)False

Question 18

Your team members can help you to evaluate feedback from outside sources.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Fast, dramatic growth can be a mistake for a business.

Accepted Answer

A) True 
 B)False

It often takes four months or more to identify and hire key employees.

Which of the following is true about teams?

Why should you have one or two members of your Board of Directors who can be considered independent?

Which of the following should an entrepreneur do when creating a venture?

Over 95% of entrepreneurs in the US report that their co-founders are the main source of seed financing.

How much, according to the National Restaurant Association, do restaurants generate in net income before taxes on average, approximately?

According to Inc. 500, what percent of entrepreneurs start businesses with their friends or family members?

Co-founders of a start-up should work on every task and decision together.

What opportunities can a young company offer its potential team members?

What are the disadvantages of distributing founder shares equally among all co-founders?

What is the minimum expected level of lawyers' fees?

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

Early stage companies tend to be hierarchal.

What attribute characterizes "restricted stock"?

Which of the following should the founder of the venture do first when deciding whether or not to be the CEO of his company?

Stock appreciation rights of employees accrue only if:

If you decide to start a venture, you should notify your current employer as soon as possible.

Your team members can help you to evaluate feedback from outside sources.

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

Fast, dramatic growth can be a mistake for a business.

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Prototyping Your Ideas

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

The Business Planning Process

Building Your Pro Forma Financial Statements

Financing 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

Filters

Exam 7: Building the Founding Team

It often takes four months or more to identify and hire key employees.

Which of the following is true about teams?

Why should you have one or two members of your Board of Directors who can be considered independent?

Which of the following should an entrepreneur do when creating a venture?

Over 95% of entrepreneurs in the US report that their co-founders are the main source of seed financing.

How much, according to the National Restaurant Association, do restaurants generate in net income before taxes on average, approximately?

According to Inc. 500, what percent of entrepreneurs start businesses with their friends or family members?

Co-founders of a start-up should work on every task and decision together.

What opportunities can a young company offer its potential team members?

What are the disadvantages of distributing founder shares equally among all co-founders?

What is the minimum expected level of lawyers' fees?

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

Early stage companies tend to be hierarchal.

What attribute characterizes "restricted stock"?

Which of the following should the founder of the venture do first when deciding whether or not to be the CEO of his company?

Stock appreciation rights of employees accrue only if:

If you decide to start a venture, you should notify your current employer as soon as possible.

Your team members can help you to evaluate feedback from outside sources.

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

Fast, dramatic growth can be a mistake for a business.

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Prototyping Your Ideas

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

The Business Planning Process

Building Your Pro Forma Financial Statements

Financing 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

Filters