Deck 8: The Entrepreneurial Leader and the Team

Question 1

Unlike in mature and stable environments,managing for rapid growth of a venture involves a(n)_____ orientation.

A) planning
B) growth
C) leadership
D) investor

Answer 1

C

Question 2

With failure rates exceeding 60 percent,the high-growth stage is the most perilous stage for new ventures.

Answer 2

False

Question 3

Key people who do not work out earn only the stock they are entitled to,and the rest is still available to the company to reward and motivate others.

Answer 3

True

Question 4

The nascent stage can be as short as a few months or can last years.

Question 5

The startup stage of venture growth is usually referred to as the nascent stage.

Question 6

Which stage of the entrepreneurial transition faces the probable crisis of confusion over ambiguous roles and responsibilities?

A) The planning stage
B) The doing stage
C) The leading stage
D) The leading managers stage

Question 7

According to the study of practicing entrepreneurs,entrepreneurial leaders need a sound foundation in "new management techniques" such as capital asset pricing models,beta coefficients,and linear programming.

Question 8

Research indicates that if an idea is not turned into a going concern within six months,the chances of a startup fall dramatically.

Question 9

It is most challenging and important for a founding entrepreneur or a chief executive officer to cope with change in:

A) leadership focus.
B) startup funding.
C) competitive responses.
D) private offering.

Question 10

In which stage of venture growth do new ventures exhibit a failure rate exceeding 60 percent?

A) The nascent stage
B) The startup stage
C) The high-growth stage
D) The mature stage

Question 11

Which stage of venture growth follows the research and development stage?

A) The nascent stage
B) The startup stage
C) The high-growth stage
D) The mature stage

Question 12

Successful entrepreneurial leaders are quick to give credit and recognize good performance,and they always accept more than their share of the blame when things do not work out.

Question 13

Which stage of the entrepreneurial transition is characterized by an erosion of founders' creativity?

A) The planning stage
B) The doing stage
C) The leading stage
D) The leading managers stage

Question 14

In rapid-growth firms,power and control are delegated and leadership is shared.

Question 15

The fairness concept of equity and compensation implies that everyone should have equal ownership in an organization.

Question 16

Which stage of venture growth offers one of the most difficult challenges as new layers of management are created to enable scale?

A) The nascent stage
B) The startup stage
C) The high-growth stage
D) The mature stage

Question 17

Which stage of the entrepreneurial transition is characterized by counterintuitive decision making and structure?

A) The planning stage
B) The doing stage
C) The leading stage
D) The leading managers stage

Question 18

An ownership structure in which a key person commands 15 to 25 percent or more of the company's equity because of his or her technical contribution will help raise venture capital.

Question 19

While many outstanding advisors,such as lawyers and accountants,are of enormous benefit to entrepreneurs,they are not always businesspeople,and often cannot make the best business judgments for those they represent.

Question 20

Which of the following is true of the maturity stage of venture growth?

A) The investigation and due diligence for a business idea occurs during this stage.
B) This stage is by far the most perilous stage.
C) The ventures are no longer fighting for survival in this stage.
D) This stage is characterized by a continually increasing rate of growth.

Question 21

Which of the following factors is frequently overvalued while developing a reward system for a venture,particularly the distribution of stock?

A) Bringing to the venture skills or contacts in such areas as marketing and technology
B) Expending a great amount of time in preparing the business plan
C) Bringing to the venture experience and track records
D) Taking adequate responsibility

Question 22

A _____ schedule ties the release of stock to a time frame,usually of at least five and sometimes seven years or more,whereby the stock is restricted and earned by one's performance.

Question 23

Discuss the impact of the Internet on virtual teams and collaboration.

Question 24

What are the five fundamental realities with nearly any new venture?

Question 25

Briefly discuss the ways entrepreneurs acquire expertise and skills they do not currently possess but which are needed to build their business.

Question 26

There exists in growing new ventures a common _____ system that is most evident in behavior and attitudes and is difficult to articulate and elusive to measure.

Question 27

What are some of the crises that growing ventures may face in the leading stage of entrepreneurial transition?

Question 28

Discuss the concept of management in rapid-growth firms.

Question 29

From the high-growth stage of venture growth,a company moves to the _____ stage.

Question 30

The _____ stage of venture growth is by far the most perilous stage requiring the drive and talent of a lead entrepreneur.

Question 31

What percentage of a fully diluted company do investors typically like to see set aside for attracting future talent and creating incentives and rewards for high performance?

A) 5 to10 percent
B) 10 to 20 percent
C) 20 to 30 percent
D) 30 to 40 percent

Question 32

Name the different types of contributions that should be considered when slicing up the equity pie.

Question 33

The research and development stage of venture growth is sometimes referred to as the _____ stage.

Question 34

In growing new ventures,managers appear unconcerned about ____.

A) team goals
B) competence
C) status
D) task supervision

Question 35

Briefly discuss the entrepreneurial culture in growing new ventures.

Question 36

The key to success in high-potential ventures is directly related to the talent and quality of the lead entrepreneur and the ____.

Question 37

The ultimate goal of any venture capital-backed company is to realize a harvest at a price at least _____ to _____ times the original investment.

Question 38

The _____ stage of venture growth is characterized by a single aspiring entrepreneur,or small team,doing the investigation and due diligence for their business idea.

Question 39

In rapid-growth firms,power and control are _____ and leadership is ____.

Question 40

At which stage of the entrepreneurial transition do conflicts among founders most often arise?

A) The planning stage
B) The doing stage
C) The leading stage
D) The leading managers stage

Question 41

Discuss the principles founders should keep in mind when they decide how to compensate themselves and the team,new talent,and the brain trust in their ventures.