Question 1

The Myers-Briggs personality type indicator can accurately predict an individual's likelihood for success in an entrepreneurial endeavor.

Accepted Answer

A) True 
 B)False

Question 2

Options give the holder the right to:

Accepted Answer

A)  Increase the number of the company shares he is allowed to purchase 
B)  Buy a share in the company at a below-market rate 
C)  Secure a salary increase on a regular basis 
D)  Sell his stocks on the open market for more than the prevailing market price 
E)  Demand a refund on his contribution to company's equity 
A)  Increase the number of the company shares he is allowed to purchase 
B)  Buy a share in the company at a below-market rate 
C)  Secure a salary increase on a regular basis 
D)  Sell his stocks on the open market for more than the prevailing market price 
E)  Demand a refund on his contribution to company's equity

Question 3

Founder shares should be distributed equally between all founders.

Accepted Answer

A) True 
 B)False

Question 4

If employees own equity in the company, their interests are aligned with those of the company.

Accepted Answer

A) True 
 B)False

Question 5

What is the most commonly used form of equity compensation?

Accepted Answer

A)  Restricted stock 
B)  Phantom stock 
C)  Options 
D)  Stock appreciation rights 
E)  None of the above 
A)  Restricted stock 
B)  Phantom stock 
C)  Options 
D)  Stock appreciation rights 
E)  None of the above

Question 6

Which of the following are not mentioned in the chapter as external team members?

Accepted Answer

A)  Board of Directors 
B)  Lawyers 
C)  Accountants 
D)  Angel investors 
E)  Foreign partners 
A)  Board of Directors 
B)  Lawyers 
C)  Accountants 
D)  Angel investors 
E)  Foreign partners

Question 7

If the business is your idea, it is best if you are the CEO.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a reason for distributing equity among employees?

Accepted Answer

A)  New companies often can't pay market rates for salary and wages 
B)  Including some equity in the compensation package aligns the employee with the company 
C)  The sense of ownership boosts morale 
D)  Distributing equity among employees reduces the risk of hostile takeover 
E)  Having some equity, the team sticks together during the rough times in the early launch phase 
A)  New companies often can't pay market rates for salary and wages 
B)  Including some equity in the compensation package aligns the employee with the company 
C)  The sense of ownership boosts morale 
D)  Distributing equity among employees reduces the risk of hostile takeover 
E)  Having some equity, the team sticks together during the rough times in the early launch phase

Question 9

Company culture is incredibly difficult to change after it has been established.

Accepted Answer

A) True 
 B)False

Question 10

According to the chapter, which of the following is not an acceptable means of maintaining an entrepreneurs' personal cash flow?

Accepted Answer

A)  Working full-time and devoting time to the new venture 
B)  Working part-time and devoting time to the new venture 
C)  Living off personal savings 
D)  Living for his/her spouses' income 
E)  All of the above are acceptable 
A)  Working full-time and devoting time to the new venture 
B)  Working part-time and devoting time to the new venture 
C)  Living off personal savings 
D)  Living for his/her spouses' income 
E)  All of the above are acceptable

Question 11

None of the following tools are usually considered a reward for "sweat equity," except:

Accepted Answer

A)  Founder shares 
B)  Option pool 
C)  Restricted stock 
D)  Stock appreciation rights 
E)  Phantom stock 
A)  Founder shares 
B)  Option pool 
C)  Restricted stock 
D)  Stock appreciation rights 
E)  Phantom stock

Question 12

All of the following is true about phantom stocks except:

Accepted Answer

A)  They are expensed over the vesting period 
B)  They are not actually issued equity 
C)  The company needs cash when phantom stocks are exercised 
D)  They grant the holders additional voting power 
E)  They lower the dilution effect 
A)  They are expensed over the vesting period 
B)  They are not actually issued equity 
C)  The company needs cash when phantom stocks are exercised 
D)  They grant the holders additional voting power 
E)  They lower the dilution effect

Question 13

The size of your organization is inversely correlated to the amount of revenue your business can derive.

Accepted Answer

A) True 
 B)False

Question 14

It is a mistake to distribute the entire supply of options to existing employees.

Accepted Answer

A) True 
 B)False

Question 15

It is important for growth-oriented companies to prioritize hiring; who should be prioritized first:

Accepted Answer

A)  Administrative support staff 
B)  In-house legal counsel 
C)  Top management consulting talent 
D)  Revenue generating salespeople 
E)  None of the above 
A)  Administrative support staff 
B)  In-house legal counsel 
C)  Top management consulting talent 
D)  Revenue generating salespeople 
E)  None of the above

Question 16

Which of the following personality traits best predicts entrepreneurial success?

Accepted Answer

A)  Analytical 
B)  Risk taker 
C)  Expressive 
D)  Amiable 
E)  None of the above 
A)  Analytical 
B)  Risk taker 
C)  Expressive 
D)  Amiable 
E)  None of the above

Question 17

Free resources are poor substitutes for a qualified lawyer.

Accepted Answer

A) True 
 B)False

Question 18

Ventures founded by teams tend to generate more revenue, be more profitable, create more jobs within growth industries than those founded by single individuals,.

Accepted Answer

A) True 
 B)False

The Myers-Briggs personality type indicator can accurately predict an individual's likelihood for success in an entrepreneurial endeavor.

Options give the holder the right to:

Founder shares should be distributed equally between all founders.

If employees own equity in the company, their interests are aligned with those of the company.

What is the most commonly used form of equity compensation?

Which of the following are not mentioned in the chapter as external team members?

If the business is your idea, it is best if you are the CEO.

Which of the following is not a reason for distributing equity among employees?

Company culture is incredibly difficult to change after it has been established.

According to the chapter, which of the following is not an acceptable means of maintaining an entrepreneurs' personal cash flow?

None of the following tools are usually considered a reward for "sweat equity," except:

All of the following is true about phantom stocks except:

The size of your organization is inversely correlated to the amount of revenue your business can derive.

It is a mistake to distribute the entire supply of options to existing employees.

It is important for growth-oriented companies to prioritize hiring; who should be prioritized first:

Which of the following personality traits best predicts entrepreneurial success?

Free resources are poor substitutes for a qualified lawyer.

Ventures founded by teams tend to generate more revenue, be more profitable, create more jobs within growth industries than those founded by single individuals,.

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Prototyping Your Ideas

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

The Business Planning Process

Building Your Pro Forma Financial Statements

Financing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Debt and Other Forms of Financing

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship

Filters

Exam 7: Building the Founding Team

The Myers-Briggs personality type indicator can accurately predict an individual's likelihood for success in an entrepreneurial endeavor.

Options give the holder the right to:

Founder shares should be distributed equally between all founders.

If employees own equity in the company, their interests are aligned with those of the company.

What is the most commonly used form of equity compensation?

Which of the following are not mentioned in the chapter as external team members?

If the business is your idea, it is best if you are the CEO.

Which of the following is not a reason for distributing equity among employees?

Company culture is incredibly difficult to change after it has been established.

According to the chapter, which of the following is not an acceptable means of maintaining an entrepreneurs' personal cash flow?

None of the following tools are usually considered a reward for "sweat equity," except:

All of the following is true about phantom stocks except:

The size of your organization is inversely correlated to the amount of revenue your business can derive.

It is a mistake to distribute the entire supply of options to existing employees.

It is important for growth-oriented companies to prioritize hiring; who should be prioritized first:

Which of the following personality traits best predicts entrepreneurial success?

Free resources are poor substitutes for a qualified lawyer.

Ventures founded by teams tend to generate more revenue, be more profitable, create more jobs within growth industries than those founded by single individuals,.

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Prototyping Your Ideas

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

The Business Planning Process

Building Your Pro Forma Financial Statements

Financing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Debt and Other Forms of Financing

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship

Filters