Chat with AIExam 10: Resource Requirements
According to the strategic principles identified by Paola Dubini and Howard Aldrich,effective entrepreneurs are more likely than others to:
(33) 
VerifiedD
Discuss the three important factors that an entrepreneur must consider when selecting accountants.
(34) VerifiedWhen selection accountants for a firm,the entrepreneur will need to address several factors:
Service:Levels of service offered and the attention likely to be provided need to be evaluated.Chances are,for most startups,both will be higher in a small firm than a large one.But if an entrepreneur of a higher-potential firm seeking venture capital or a strategic partner has aspirations to go public,a national firm is a good place to start.
Needs:Needs,both current and future,have to be weighed against the capabilities of the firm.Larger firms are more equipped to handle highly complex or technical problems,while smaller firms may be preferable for general management advice and assistance because the principals are more likely to be involved in handling the account.In most instances,companies in the early stages of planning or that do not plan to go public do not require a top-tier accounting firm.However,one exception to this might be startups that are able to attract formal venture capital funds from day one.
Cost:Most major firms will offer very cost-competitive services to startups with significant growth and profit potential.That does not mean one will be talking to a partner.If a venture needs the attention of a partner in a larger firm,services of the larger firm are more expensive.However,if the firm requires extensive technical knowledge,a larger firm may have more experience and be more efficient.Many early-growth phase companies are not able to afford to hire a leading national accounting firm,and therefore a small local firm is best.
Why are members of a board of advisors not exposed to personal liability like formal board directors?
(38) VerifiedA board of advisors is designed to dispense advice rather than make decisions.
Effective entrepreneurs set aside time for purely random activities-things done with no specific problem in mind.
(28) Directors of a company can be held personally liable for its actions and those of its officers.
(29) Describe the use of other people's resources (OPR)as an approach for entrepreneurs.
(31) Since a board of advisors is designed to dispense advice rather than make decisions,its liability is limited.
(32) How can new venture entrepreneurs without law degrees save money on legal work?
(35) According to Art Spinner,in order to develop a productive relationship with one's board of directors,one should never set up a(n)____.
(38) Courts have held that even if a director of a company can prove that he or she acted in good faith,the director cannot be excused from liability.
(27) A financing strategy will probably encompass a combination of both _____ and _____ capital.
(33) Consultants should not be employed by a startup to compensate for a lower level of professional experience in the team.
(34) The Sarbanes-Oxley Act (SOX)requires companies to file paperwork with the _____ Commission faster.
(19) Intellectual honesty to an entrepreneur means realizing what he or she knows and what he or she needs to know.
(26) If an entrepreneur of a higher-potential firm seeking venture capital has aspirations to go public,which of the following accounting firms is a good place to start for accounting expertise?
(38) The approach of seeking to control the resources needed rather than owning them results in:
(25) Effective entrepreneurs are more likely than others to undertake actions toward increasing their network density and ____.
(44) Entrepreneurs in high-potential startups should secure resources enough for the task at hand and a cushion against adversity.
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