Question 1

A skills profile is a chart that depicts the most important skills that are needed and where skills gaps exist.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is incorrect regarding founding teams?

Accepted Answer

A)  The members of heterogeneous teams are diverse in terms of their abilities and experiences. 
B)  Teams that are working together for the first time have an advantage over teams that have worked together before. 
C)  The psychological support that cofounders of a new business can offer one another is an important element of a firm's success. 
D)  The members of homogeneous teams are very similar in terms of their abilities and experiences. 
E)  Studies show that more than one individual starts 50 to 70 percent of all new teams. 
A)  The members of heterogeneous teams are diverse in terms of their abilities and experiences. 
B)  Teams that are working together for the first time have an advantage over teams that have worked together before. 
C)  The psychological support that cofounders of a new business can offer one another is an important element of a firm's success. 
D)  The members of homogeneous teams are very similar in terms of their abilities and experiences. 
E)  Studies show that more than one individual starts 50 to 70 percent of all new teams.

Question 3

Which of the following statements about advisory boards is incorrect?

Accepted Answer

A)  If a firm has a board of directors, it is not permitted to have an advisory board. 
B)  Many people are more willing to serve on a company's board of advisors than its board of directors because it requires less time and there is no potential legal liability involved. 
C)  Most boards of advisers have between 5 and 15 members. 
D)  A growing number of startups are forming advisory boards. 
E)  An advisory board can be established for general purposes or can be set up to address a specific issue or need. 
A)  If a firm has a board of directors, it is not permitted to have an advisory board. 
B)  Many people are more willing to serve on a company's board of advisors than its board of directors because it requires less time and there is no potential legal liability involved. 
C)  Most boards of advisers have between 5 and 15 members. 
D)  A growing number of startups are forming advisory boards. 
E)  An advisory board can be established for general purposes or can be set up to address a specific issue or need.

Question 4

SCORE is a for-profit organization that provides consulting services to small businesses.

Accepted Answer

A) True 
 B)False

Question 5

A(n) ________ is a person who works for a business as an apprentice or trainee for the purpose of obtaining actual experience.

Accepted Answer

A)  freelancer 
B)  consultant 
C)  intern 
D)  virtual assistant 
E)  novice 
A)  freelancer 
B)  consultant 
C)  intern 
D)  virtual assistant 
E)  novice

Question 6

All consultants are paid consultants.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

What is SCORE? What is its role in helping a firm fill out its new venture team?

Accepted Answer

SCORE, Service Corps of Retired Executiv

Question 9

According to the textbook, which of the following statements is inaccurate regarding the size and composition of the founding team of a firm?

Accepted Answer

A)  There is no relationship between a founding team's size and its effectiveness. 
B)  A founding team larger than four people is typically too large to be practical. 
C)  The members of a homogeneous founding team are similar in terms of their abilities and experiences. 
D)  The members of a heterogeneous founding team are diverse in terms of their abilities and experiences. 
E)  A founding team can be too big, causing communication problems and increasing potential for conflict. 
A)  There is no relationship between a founding team's size and its effectiveness. 
B)  A founding team larger than four people is typically too large to be practical. 
C)  The members of a homogeneous founding team are similar in terms of their abilities and experiences. 
D)  The members of a heterogeneous founding team are diverse in terms of their abilities and experiences. 
E)  A founding team can be too big, causing communication problems and increasing potential for conflict.

Question 10

A board of directors' three formal responsibilities are to appoint the officers of the firm, oversee the affairs of the corporation, and ________.

Accepted Answer

A)  conduct the annual meeting 
B)  provide funding for the firm 
C)  submit the firm's annual report to the stockholders 
D)  declare dividends 
E)  write the firm's strategic plan 
A)  conduct the annual meeting 
B)  provide funding for the firm 
C)  submit the firm's annual report to the stockholders 
D)  declare dividends 
E)  write the firm's strategic plan

Question 11

The term "liability of newness" refers to the fact that companies often falter because the people who start the firms can't adjust quickly enough to their new roles and because the firms lack "track records" with outside buyers and suppliers.

Accepted Answer

A) True 
 B)False

Question 12

Describe the term "liability of newness" and suggest several ways that a new venture can overcome this handicap.

Accepted Answer

The term "liability of newness" refers t

Question 13

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

Accepted Answer

A)  junior; senior 
B)  inside; outside 
C)  experienced; inexperienced 
D)  novice; expert 
E)  paid; unpaid 
A)  junior; senior 
B)  inside; outside 
C)  experienced; inexperienced 
D)  novice; expert 
E)  paid; unpaid

Question 14

According to the textbook, studies show that more than one individual starts ________ percent of all new firms.

Accepted Answer

A)  20 to 25 
B)  50 to 70 
C)  5 to 15 
D)  30 to 40 
E)  75 to 90 
A)  20 to 25 
B)  50 to 70 
C)  5 to 15 
D)  30 to 40 
E)  75 to 90

Question 15

Which of the following statements about advisory boards is incorrect?

Accepted Answer

A)  The fact that a corporation has a board of directors does not preclude it from establishing one or more advisory boards. 
B)  An advisory board can be established for general purposes or can be set up to address a specific issue or need. 
C)  Similar to a board of directors, an advisory board has legal responsibility for the firm in certain areas. 
D)  An advisory board is a panel of experts who are asked by a firm's managers to provide counsel and advice on an ongoing basis. 
E)  A growing number of startups are forming advisory boards. 
A)  The fact that a corporation has a board of directors does not preclude it from establishing one or more advisory boards. 
B)  An advisory board can be established for general purposes or can be set up to address a specific issue or need. 
C)  Similar to a board of directors, an advisory board has legal responsibility for the firm in certain areas. 
D)  An advisory board is a panel of experts who are asked by a firm's managers to provide counsel and advice on an ongoing basis. 
E)  A growing number of startups are forming advisory boards.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  provide guidance and support to the firm's managers 
B)  submit papers on behalf of the firm to the SEC 
C)  represent the firm in public relations activities 
D)  conduct the firm's annual meeting 
E)  provide funding to the firm 
A)  provide guidance and support to the firm's managers 
B)  submit papers on behalf of the firm to the SEC 
C)  represent the firm in public relations activities 
D)  conduct the firm's annual meeting 
E)  provide funding to the firm

Question 18

It is generally believed that new ventures started by an individual have an advantage over those started by a team.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Consultants fall into two categories-paid consultants and consultants who are made available for free or at a reduced rate through a nonprofit or government agency.

Accepted Answer

A) True 
 B)False

A skills profile is a chart that depicts the most important skills that are needed and where skills gaps exist.

Which of the following statements is incorrect regarding founding teams?

Which of the following statements about advisory boards is incorrect?

SCORE is a for-profit organization that provides consulting services to small businesses.

A(n) ________ is a person who works for a business as an apprentice or trainee for the purpose of obtaining actual experience.

All consultants are paid consultants.

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

What is SCORE? What is its role in helping a firm fill out its new venture team?

According to the textbook, which of the following statements is inaccurate regarding the size and composition of the founding team of a firm?

A board of directors' three formal responsibilities are to appoint the officers of the firm, oversee the affairs of the corporation, and ________.

The term "liability of newness" refers to the fact that companies often falter because the people who start the firms can't adjust quickly enough to their new roles and because the firms lack "track records" with outside buyers and suppliers.

Describe the term "liability of newness" and suggest several ways that a new venture can overcome this handicap.

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

According to the textbook, studies show that more than one individual starts ________ percent of all new firms.

Which of the following statements about advisory boards is incorrect?

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

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

It is generally believed that new ventures started by an individual have an advantage over those started by a team.

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

Consultants fall into two categories-paid consultants and consultants who are made available for free or at a reduced rate through a nonprofit or government agency.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

Exam 9: Building a New-Venture Team

A skills profile is a chart that depicts the most important skills that are needed and where skills gaps exist.

Which of the following statements is incorrect regarding founding teams?

Which of the following statements about advisory boards is incorrect?

SCORE is a for-profit organization that provides consulting services to small businesses.

A(n) ________ is a person who works for a business as an apprentice or trainee for the purpose of obtaining actual experience.

All consultants are paid consultants.

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

What is SCORE? What is its role in helping a firm fill out its new venture team?

According to the textbook, which of the following statements is inaccurate regarding the size and composition of the founding team of a firm?

A board of directors' three formal responsibilities are to appoint the officers of the firm, oversee the affairs of the corporation, and ________.

The term "liability of newness" refers to the fact that companies often falter because the people who start the firms can't adjust quickly enough to their new roles and because the firms lack "track records" with outside buyers and suppliers.

Describe the term "liability of newness" and suggest several ways that a new venture can overcome this handicap.

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

According to the textbook, studies show that more than one individual starts ________ percent of all new firms.

Which of the following statements about advisory boards is incorrect?

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

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

It is generally believed that new ventures started by an individual have an advantage over those started by a team.

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

Consultants fall into two categories-paid consultants and consultants who are made available for free or at a reduced rate through a nonprofit or government agency.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

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