Question 1

Which of the following statements is not true regarding the attributes of the founder or founders of a firm?

Accepted Answer

A)  Evidence suggests that important entrepreneurial skills are enhanced through higher education. 
B)  Founders with prior entrepreneurial experience are more likely to avoid costly mistakes. 
C)  Founders with experience in the same industry as their new ventures will typically have "blinders" on and are typically not as effective as founders new to the industry. 
D)  Founders with broad social and professional networks have an advantage. 
E)  New ventures that are started by a team rather than an individual have an advantage. 
A)  Evidence suggests that important entrepreneurial skills are enhanced through higher education. 
B)  Founders with prior entrepreneurial experience are more likely to avoid costly mistakes. 
C)  Founders with experience in the same industry as their new ventures will typically have "blinders" on and are typically not as effective as founders new to the industry. 
D)  Founders with broad social and professional networks have an advantage. 
E)  New ventures that are started by a team rather than an individual have an advantage. C

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

Similar to a board of directors, an advisory board possesses legal responsibility for the firm.

Accepted Answer

A) True 
 B)False  False

Question 4

An increasingly important approach for recruiting employees is via social media sites like LinkedIn, Facebook, and Twitter.

Accepted Answer

A) True 
 B)False

Question 5

A board of directors has three formal responsibilities: appoint the officers of the firm, oversee the affairs of the corporation, and:

Accepted Answer

A)  conduct the annual meeting 
B)  provide funding for the firm 
C)  submit the firm's annual report to the stockholders 
D)  declare dividends 
E)  write the firm's strategic plan 
A)  conduct the annual meeting 
B)  provide funding for the firm 
C)  submit the firm's annual report to the stockholders 
D)  declare dividends 
E)  write the firm's strategic plan

Question 6

A 2011 survey conducted by the University of Maryland's School of Business and Network Solutions asked small business owners how well they competed with other companies for good employees, and only ________ said they were successful.

Accepted Answer

A)  16 percent 
B)  28 percent 
C)  30 percent 
D)  46 percent 
E)  66 percent 
A)  16 percent 
B)  28 percent 
C)  30 percent 
D)  46 percent 
E)  66 percent

Question 7

Which of the following was not identified in the textbook as an attribute of an effective board member?

Accepted Answer

A)  strong personal and professional networks 
B)  unknown in their field 
C)  investment and/or operating experience 
D)  ability and willingness to mentor the CEO and the top managers of the firm 
E)  pattern recognition skills 
A)  strong personal and professional networks 
B)  unknown in their field 
C)  investment and/or operating experience 
D)  ability and willingness to mentor the CEO and the top managers of the firm 
E)  pattern recognition skills

Question 8

The panel of individuals who are elected by a corporation's shareholders to oversee the management of the firm is called the:

Accepted Answer

A)  board of advisors 
B)  accountability panel 
C)  advisory team 
D)  panel of directors 
E)  board of directors 
A)  board of advisors 
B)  accountability panel 
C)  advisory team 
D)  panel of directors 
E)  board of directors

Question 9

According to the textbook, studies show that more than one individual starts ________ of all new firms.

Accepted Answer

A)  20 to 25 percent 
B)  50 to 70 percent 
C)  5 to 15 percent 
D)  30 to 40 percent 
E)  75 to 90 percent 
A)  20 to 25 percent 
B)  50 to 70 percent 
C)  5 to 15 percent 
D)  30 to 40 percent 
E)  75 to 90 percent

Question 10

Scripped, the company profiled in the opening feature for Chapter 9, offers Web-based screenwriting software. Which of the following statements best reflects Scripped's personnel policy?

Accepted Answer

A)  Scripped has hired aggressively and now has approximately 40 employees. 
B)  Its three cofounders are its only employees. 
C)  Scripped was founded by two UCLA MBA students and quickly grew to 10 employees. 
D)  Its founder is its only employee. 
E)  It has avoided building a large staff. Its formal employees consist of its three cofounders and an individual obtained in a merger. 
A)  Scripped has hired aggressively and now has approximately 40 employees. 
B)  Its three cofounders are its only employees. 
C)  Scripped was founded by two UCLA MBA students and quickly grew to 10 employees. 
D)  Its founder is its only employee. 
E)  It has avoided building a large staff. Its formal employees consist of its three cofounders and an individual obtained in a merger.

Question 11

According to the textbook, prior entrepreneurial experiences:

Accepted Answer

A)  is one of the poorest predictors of future entrepreneurial performance 
B)  is one of the most consistent predictors of future entrepreneurial performance for entrepreneurs under 50 years of age but not for entrepreneurs over 50 years of age 
C)  is one of the most consistent predictors of future entrepreneurial performance 
D)  is one of the most consistent predictors of future entrepreneurial performance in service firms but not in manufacturing firms 
E)  has no relationship to future entrepreneurial performance 
A)  is one of the poorest predictors of future entrepreneurial performance 
B)  is one of the most consistent predictors of future entrepreneurial performance for entrepreneurs under 50 years of age but not for entrepreneurs over 50 years of age 
C)  is one of the most consistent predictors of future entrepreneurial performance 
D)  is one of the most consistent predictors of future entrepreneurial performance in service firms but not in manufacturing firms 
E)  has no relationship to future entrepreneurial performance

Question 12

What is the difference between a heterogeneous and a homogeneous founding team? Which type of team has the advantage?

Accepted Answer

Heterogeneous founding teams are diverse

Question 13

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

Accepted Answer

A)  give professional advice 
B)  international consulting firms, like Accenture and Bearing Point, are financially beyond the reach of most small firms 
C)  consultants fall into two categories: paid consultants and consultants who are made available for free 
D)  give expert advice 
E)  help manage the day-to-day activities of the firm 
A)  give professional advice 
B)  international consulting firms, like Accenture and Bearing Point, are financially beyond the reach of most small firms 
C)  consultants fall into two categories: paid consultants and consultants who are made available for free 
D)  give expert advice 
E)  help manage the day-to-day activities of the firm

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

A board of directors is typically made up of both:

Accepted Answer

A)  junior and senior directors 
B)  inside and outside directors 
C)  experienced and inexperienced directors 
D)  novice and expert directors 
E)  paid and unpaid directors 
A)  junior and senior directors 
B)  inside and outside directors 
C)  experienced and inexperienced directors 
D)  novice and expert directors 
E)  paid and unpaid directors

Question 16

The members of heterogeneous teams are:

Accepted Answer

A)  diverse in terms of their abilities and experiences 
B)  diverse in terms of their abilities, but very similar in terms of their experiences 
C)  similar in terms of their abilities and experiences 
D)  diverse in terms of their experiences, but very similar in terms of their abilities 
E)  sometimes diverse in terms of their abilities and experiences and sometimes similar along the same dimensions 
A)  diverse in terms of their abilities and experiences 
B)  diverse in terms of their abilities, but very similar in terms of their experiences 
C)  similar in terms of their abilities and experiences 
D)  diverse in terms of their experiences, but very similar in terms of their abilities 
E)  sometimes diverse in terms of their abilities and experiences and sometimes similar along the same dimensions

Question 17

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

Accepted Answer

A)  startup squad 
B)  new venture panel 
C)  new venture team 
D)  startup cadre 
E)  startup troop 
A)  startup squad 
B)  new venture panel 
C)  new venture team 
D)  startup cadre 
E)  startup troop

Question 18

Studies show that more than one individual starts 80 to 90 percent of all new firms.

Accepted Answer

A) True 
 B)False

Question 19

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:

Accepted Answer

A)  liability of preparedness 
B)  liability of newness 
C)  burden of novelty 
D)  burden of freshness 
E)  millstone of innovation 
A)  liability of preparedness 
B)  liability of newness 
C)  burden of novelty 
D)  burden of freshness 
E)  millstone of innovation

Question 20

Which of the following statements is incorrect regarding founding teams?

Accepted Answer

A)  The members of heterogeneous teams are diverse in terms of their abilities and experiences. 
B)  Teams that are working together for the first time have an advantage over teams that have worked together before. 
C)  The psychological support that cofounders of a new business can offer one another is an important element of a firm's success. 
D)  The members of homogeneous teams are very similar in terms of their abilities and experiences. 
E)  Studies show that more than one individual starts 50 to 70 percent of all new teams. 
A)  The members of heterogeneous teams are diverse in terms of their abilities and experiences. 
B)  Teams that are working together for the first time have an advantage over teams that have worked together before. 
C)  The psychological support that cofounders of a new business can offer one another is an important element of a firm's success. 
D)  The members of homogeneous teams are very similar in terms of their abilities and experiences. 
E)  Studies show that more than one individual starts 50 to 70 percent of all new teams.

Which of the following statements is not true regarding the attributes of the founder or founders of a firm?

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

Similar to a board of directors, an advisory board possesses legal responsibility for the firm.

An increasingly important approach for recruiting employees is via social media sites like LinkedIn, Facebook, and Twitter.

A board of directors has three formal responsibilities: appoint the officers of the firm, oversee the affairs of the corporation, and:

A 2011 survey conducted by the University of Maryland's School of Business and Network Solutions asked small business owners how well they competed with other companies for good employees, and only ________ said they were successful.

Which of the following was not identified in the textbook as an attribute of an effective board member?

The panel of individuals who are elected by a corporation's shareholders to oversee the management of the firm is called the:

According to the textbook, studies show that more than one individual starts ________ of all new firms.

Scripped, the company profiled in the opening feature for Chapter 9, offers Web-based screenwriting software. Which of the following statements best reflects Scripped's personnel policy?

According to the textbook, prior entrepreneurial experiences:

What is the difference between a heterogeneous and a homogeneous founding team? Which type of team has the advantage?

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

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

A board of directors is typically made up of both:

The members of heterogeneous teams are:

Studies show that more than one individual starts 80 to 90 percent of all new firms.

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:

Which of the following statements is incorrect regarding founding teams?

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Developing an Effective Business Model

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

Exam 9: Building a New Venture Team

Which of the following statements is not true regarding the attributes of the founder or founders of a firm?

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

Similar to a board of directors, an advisory board possesses legal responsibility for the firm.

An increasingly important approach for recruiting employees is via social media sites like LinkedIn, Facebook, and Twitter.

A board of directors has three formal responsibilities: appoint the officers of the firm, oversee the affairs of the corporation, and:

A 2011 survey conducted by the University of Maryland's School of Business and Network Solutions asked small business owners how well they competed with other companies for good employees, and only ________ said they were successful.

Which of the following was not identified in the textbook as an attribute of an effective board member?

The panel of individuals who are elected by a corporation's shareholders to oversee the management of the firm is called the:

According to the textbook, studies show that more than one individual starts ________ of all new firms.

Scripped, the company profiled in the opening feature for Chapter 9, offers Web-based screenwriting software. Which of the following statements best reflects Scripped's personnel policy?

According to the textbook, prior entrepreneurial experiences:

What is the difference between a heterogeneous and a homogeneous founding team? Which type of team has the advantage?

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

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

A board of directors is typically made up of both:

The members of heterogeneous teams are:

Studies show that more than one individual starts 80 to 90 percent of all new firms.

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:

Which of the following statements is incorrect regarding founding teams?

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Developing an Effective Business Model

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters