Question 1

The functions assumed by a professional employer organization include ____ functions.

Accepted Answer

A)  payroll and human resource
B)  marketing research
C)  manufacturing
D)  All of these choices
E)  None of these choices A

Question 2

Most entrepreneurs try to avoid hiring employees as long as possible, because employees are the single biggest expense in the business.

Accepted Answer

A) True 
 B)False  True

Question 3

Briefly discuss the elements of the entrepreneur's extended networks.

Accepted Answer

These networks consist of the relationship between owners, managers, and employees and are structured by patterns of coordination and control. At the hub is the founding team, which has the vision and dedication to coordinate the efforts of all the partners toward a common goal.

Question 4

Which of the following is not a professional advisor to an entrepreneur?

Accepted Answer

A)  Attorney
B)  Board of directors
C)  Accountant
D)  Banker
E)  Insurance agent

Question 5

Which of the following is a service that consultants do not provide?

Accepted Answer

A)  Training sales staff and/or management
B)  Conducting market research
C)  Acting as temporary key management
D)  Bringing the activity in-house
E)  Conducting research and development

Question 6

____ staff is a way for a new business to enjoy the advantages of having the kind of skilled work force available to major corporations without incurring so many of the expenses.

Accepted Answer

A)  Hiring
B)  Leasing
C)  Outsourcing
D)  Borrowing
E)  None of these choices

Question 7

Briefly discuss the special issues that may arise with founding teams in the high-tech industry.

Accepted Answer

The answer of Briefly discuss the special issues that may...

Question 8

A board member with no direct connection to the business is a/an ____.

Accepted Answer

A)  inside board member
B)  personal advisor
C)  partner
D)  outside board member
E)  insurance agent

Question 9

What services can a founder with banking experience offer the team?

Accepted Answer

The answer of What services can a founder with banking...

Question 10

Why is a founding team more likely to be successful versus a solo, independent entrepreneur?

Accepted Answer

The answer of Why is a founding team more likely...

Question 11

A/An ____ consists of individuals whom the entrepreneur respects and trusts. They serve as a sounding board for ideas and act as coaches.

Accepted Answer

A)  advisory board
B)  board of directors
C)  founding team
D)  personal mentor board
E)  independent contractor

Question 12

One of the biggest incentives for taking on the risk of a startup venture is the opportunity to acquire a/an ____ stake and participate in the potential upside if the startup is a success.

Accepted Answer

A)  buy-sell
B)  equity
C)  investor
D)  advisor
E)  None of these choices

Question 13

What are the primary considerations to take into account before asking a family member or close friend to be a partner?

Accepted Answer

The answer of What are the primary considerations to take...

Question 14

The firm's ____ should be thought of as a business partner who can be a source of information and networking; help make decisions regarding capital needs; and assist in preparing pro forma operations and cash-flow analyses.

Accepted Answer

A)  accountant
B)  auditor
C)  banker
D)  board
E)  None of these choices

Question 15

Which of the following would not be representative of good team member communication?

Accepted Answer

A)  Talking and listening for about the same amount of time
B)  Talking over one another
C)  Lively face to face conversations with team members
D)  Back-channel or sidebar conversations

Question 16

A board of directors can be made up of inside or outside members or a combination of the two.

Accepted Answer

A) True 
 B)False

Question 17

To determine whether the accounting and control procedures are adequate once the new venture is beyond the startup phase and is growing consistently, ____.

Accepted Answer

A)  an annual audit is needed
B)  financial statements are not required
C)  a business agent is not required
D)  a labor union is essential
E)  the entrepreneur should file with the SEC

Question 18

A/an ____ is an advocate, but a/an ____ is bound by rules and ethics that do not permit advocacy.

Accepted Answer

A)  insurance agent / banker
B)  banker / insurance agent
C)  consultant / government agency
D)  lawyer / accountant
E)  accountant / lawyer

Question 19

The chances of success are greater when the lead entrepreneur and the team share the same ____ for the new venture.

Accepted Answer

A)  advisors
B)  skills
C)  vision
D)  network
E)  status expectations

Question 20

An accountant is your advocate, but your lawyer is bound by rules and ethics that do not permit advocacy.

Accepted Answer