Exam 9: Building a New-Venture Team

Prior entrepreneurial experience, relevant industry experience, and networking are attributes that strengthen the chances of a founder's success.

Although a board of directors has formal governance responsibilities, its most useful role is to provide guidance and support to the firm's managers.

Which of the following is incorrect regarding the typical role of consultants in business startups?

An advisory board is a panel of experts who are asked by a firm's managers to provide counsel and advice on an ongoing basis.

Wild Friends Food, the company profiled in the opening feature of Chapter 9, is a food company. Which of the following statements is incorrect regarding Wild Friends Foods co-founders, its personnel policies or the company itself?

Calvin Tucker is in the process of launching an educational services firm. He plans to incorporate the firm. Because the firm will be incorporated, Calvin is legally required to have a ________.

Sam Atkinson, a new entrepreneur who had just launched his venture, joined an entrepreneurship boot camp. Sam's goal in joining the boot camp was to overcome the liability of ________.

According to the textbook, most boards of advisers have between ________ and ________ members.

Adam Miller is a general partner in a venture capital firm that just funded Gold Coast Software, a software firm in Santa Barbara, California. Gold Coast Software is incorporated, and Adam has taken a seat on the firm's board of directors. In board of directors terminology, Keith is a(n) ________ director.

A ________ is the group of founders, key employees, and advisers that move a new venture from an idea to a fully functioning firm.

Which of the following statements is incorrect regarding boards of directors?

The fact that companies often falter because the people who start the firms can't adjust quickly enough to their new roles and because the firm lacks a "track record" with outside buyers and sellers, is referred to as the ________.

A business ________ is an individual who gives professional or expert advice, on a volunteer or fee basis.

Liz Zackery just launched a firm in the sporting goods industry. On the day the company was launched, Liz issued a press release, indicating that the vice president of New Balance, a highly respected athletic shoe and sports apparel company, had agreed to serve on her board of directors. Liz knows that such a high quality appointment will send an important message to her potential clientele. This phenomenon is referred to as ________.

The fact that a corporation has a board of directors precludes it from having a board of advisors.

A virtual assistant is a freelancer who provides administrative, technical, or creative assistance to clients remotely from a home office.

An advisory board can be established for general purposes or can be set up to address a specific need.

Which of the following was NOT identified in the textbook as an element of a new venture team?

Kelly Andersen founded a technology consulting firm several years ago. Her firm has grown rapidly and is financially successful. One thing that Kelly attributes her success to is that early on she assembled a panel of experts who provided her ongoing direction and advice about her business. What Kelly created is called a(n) ________.

Kathy Denver is preparing to launch a home security firm. The team of people that will launch Kathy's firm are as follows: Kathy (CEO), Trevor (VP-Finance), Shelia (VP-Sales), a four-person Board of Directors, a five-person Board of Advisors, and Kathy's primary investor, who will assume an advisory role. The group of people that will launch Kathy's firm is called its ________.