Exam 9: Building a New-Venture Team

According to the textbook, although a board of directors has formal governance responsibilities, its most useful role is to ________.

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 ________.

According to the textbook, prior entrepreneurial experience ________.

A(n) ________ is a person who is in business for themselves, works on their own time with their own tools and equipment, and performs services for a number of different clients.

A board of directors' three formal responsibilities are to appoint the officers of the firm, declare dividends, and ________.

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 ________.

A board of directors is typically made up of both ________ and ________ directors.

More people are willing to serve on a company's board of directors than board of advisors.

A skills profile is a chart that depicts the ________.

Founding teams that have worked together before, as opposed to teams that are working together for the first time, have an edge.

The high failure rate among new ventures is due, in part, to the liability of newness, which refers to the fact that new companies often falter because ________.

What is a skills profile and what is it used for?

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) ________.

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

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 ________.

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

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

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

Which of the following qualities was not identified in the textbook as a preferred attribute of the founder(s) of a firm?

A(n) ________ is a chart that depicts the most important skills that are needed in a new venture and where skills gaps exist.