Question 1

The process of building and maintaining relationships with people whose interests are similar or whose relationship could bring advantages to the firm is called:

Accepted Answer

A)  linking 
B)  socializing 
C)  networking 
D)  associating 
E)  connecting 
A)  linking 
B)  socializing 
C)  networking 
D)  associating 
E)  connecting

Question 2

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 3

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 4

Kate Harrison is in the process of launching an educational services firm. She plans to incorporate the firm. Because the firm will be incorporated, Kate is legally required to have a:

Accepted Answer

A)  board of investors 
B)  board of advisors 
C)  customer advisory board 
D)  board of directors 
E)  panel of advisors and peers 
A)  board of investors 
B)  board of advisors 
C)  customer advisory board 
D)  board of directors 
E)  panel of advisors and peers

Question 5

The high failure rate among new ventures is due in part to the liability of newness, which refers to the fact that new companies often falter because:

Accepted Answer

A)  they are underfunded and the founders of the firms don't move quickly enough to put together boards of directors and boards of advisors that can provide them direction and advice 
B)  the founders of the firms underestimate the complexities involved with starting a new business and the firms lack a "track record" with outside buyers and sellers 
C)  the people who start the firms can't adjust quickly enough to their new roles and the firms lack a "track record" with outside buyers and sellers 
D)  the people who start the firms can't adjust quickly enough to their new roles and they are underfunded 
E)  the founders of the firms underestimate the complexities involved with starting a new business and they don't move quickly enough to establish business partnerships 
A)  they are underfunded and the founders of the firms don't move quickly enough to put together boards of directors and boards of advisors that can provide them direction and advice 
B)  the founders of the firms underestimate the complexities involved with starting a new business and the firms lack a "track record" with outside buyers and sellers 
C)  the people who start the firms can't adjust quickly enough to their new roles and the firms lack a "track record" with outside buyers and sellers 
D)  the people who start the firms can't adjust quickly enough to their new roles and they are underfunded 
E)  the founders of the firms underestimate the complexities involved with starting a new business and they don't move quickly enough to establish business partnerships

Question 6

A skills profile is a chart that depicts the:

Accepted Answer

A)  preferable skills and abilities of the members of a firm's board of advisors 
B)  preferable skills and abilities of the members of a firm's board of directors 
C)  most important skills that are needed in a business startup and where skills gaps exist 
D)  skills and abilities that will be needed for a firm to maintain an aggressive growth strategy 
E)  the skills of a company's customers and how those skills impact the product and services a company provides 
A)  preferable skills and abilities of the members of a firm's board of advisors 
B)  preferable skills and abilities of the members of a firm's board of directors 
C)  most important skills that are needed in a business startup and where skills gaps exist 
D)  skills and abilities that will be needed for a firm to maintain an aggressive growth strategy 
E)  the skills of a company's customers and how those skills impact the product and services a company provides

Question 7

Ned Kite is a four time business owner. One thing that has served Ned well throughout his entrepreneurial career is his ability to build and maintain relationships with people whose interests are similar or whose relationships could bring advantages to his new ventures. According to the textbook, Ned is a good:

Accepted Answer

A)  networker 
B)  socializer 
C)  linker 
D)  assembler 
E)  connector 
A)  networker 
B)  socializer 
C)  linker 
D)  assembler 
E)  connector

Question 8

The Savvy Entrepreneurial Firm feature in Chapter 9 focuses on how business founders overcome a lack of business experience. Which of the following was not mentioned as a practical way for a new business founder to overcome a lack of business experience?

Accepted Answer

A)  hiring consultants from a major consulting firm, like Bain & Company or McKinsey & Company 
B)  taking on a partner that has business experience 
C)  getting help from a Small Business Development Center 
D)  joining a Meetup group 
E)  participating in online forums 
A)  hiring consultants from a major consulting firm, like Bain & Company or McKinsey & Company 
B)  taking on a partner that has business experience 
C)  getting help from a Small Business Development Center 
D)  joining a Meetup group 
E)  participating in online forums

Question 9

What is a skills profile and what is it used for?

Accepted Answer

A skills profile is a chart that depicts

Question 10

Andy Zackery just launched a firm in the sporting goods industry. On the day the company was launched, Andy issued a press release, indicating that the vice president of Brunswick, a highly respected sporting goods company, had agreed to serve on his board of directors. Andy knows that such a high quality appointment will send an important message to his potential clientele. This phenomenon is referred to as:

Accepted Answer

A)  championing 
B)  signaling 
C)  profiling 
D)  indicating 
E)  trumping 
A)  championing 
B)  signaling 
C)  profiling 
D)  indicating 
E)  trumping

Question 11

Which of the following qualities was not identified in the textbook as a preferred attribute of the founder or founders of a firm?

Accepted Answer

A)  prior entrepreneurial experience 
B)  firm started by a team 
C)  relevant industry experience 
D)  prior experience working in a government or university position 
E)  higher education 
A)  prior entrepreneurial experience 
B)  firm started by a team 
C)  relevant industry experience 
D)  prior experience working in a government or university position 
E)  higher education

Question 12

William Woods recently launched a printing company. One thing William is thinking about creating is a panel of experts who can provide him ongoing direction and advice regarding the future of his business. William is thinking about creating a(n):

Accepted Answer

A)  analysis panel 
B)  discussion board 
C)  advisory board 
D)  suggestion panel 
E)  accountability panel 
A)  analysis panel 
B)  discussion board 
C)  advisory board 
D)  suggestion panel 
E)  accountability panel

Question 13

Most boards of advisers have between 3 and 5 members.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is incorrect regarding boards of directors?

Accepted Answer

A)  If a new venture organizes as a corporation, it is not legally required to have a board of directors, but it is strongly recommended. 
B)  A board is typically made up of both inside and outside directors. 
C)  The board is responsible for declaring dividends. 
D)  Most boards meet formally three or four times a year. 
E)  The boards for publicly traded companies are required by law to have audit and compensation committees. 
A)  If a new venture organizes as a corporation, it is not legally required to have a board of directors, but it is strongly recommended. 
B)  A board is typically made up of both inside and outside directors. 
C)  The board is responsible for declaring dividends. 
D)  Most boards meet formally three or four times a year. 
E)  The boards for publicly traded companies are required by law to have audit and compensation committees.

Question 15

James Williams is the Chief Operating Officer of a startup in the health food industry. He is also a member of his firm's board of directors. In board of directors terminology, James is a(n):

Accepted Answer

A)  inside director 
B)  outside director 
C)  expert director 
D)  junior director 
E)  senior director 
A)  inside director 
B)  outside director 
C)  expert director 
D)  junior director 
E)  senior director

Question 16

According to the textbook, most boards of advisers have between:

Accepted Answer

A)  5 and 15 members 
B)  2 and 4 members 
C)  10 and 18 members 
D)  2 and 3 members 
E)  4 and 7 members 
A)  5 and 15 members 
B)  2 and 4 members 
C)  10 and 18 members 
D)  2 and 3 members 
E)  4 and 7 members

Question 17

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.

Accepted Answer

A) True 
 B)False

Question 18

Networking is building and maintaining relationships with people whose interests are similar or whose relationship could bring advantages to a firm.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  leading 
B)  subordinate 
C)  specialist 
D)  outside 
E)  impartial 
A)  leading 
B)  subordinate 
C)  specialist 
D)  outside 
E)  impartial

Question 20

A new venture team is the group of founders, key employees, and advisers that move a new venture from an idea to a fully functioning firm.

Accepted Answer

A) True 
 B)False

The process of building and maintaining relationships with people whose interests are similar or whose relationship could bring advantages to the firm is called:

Which of the following statements about advisory boards is incorrect?

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

Kate Harrison is in the process of launching an educational services firm. She plans to incorporate the firm. Because the firm will be incorporated, Kate is legally required to have a:

The high failure rate among new ventures is due in part to the liability of newness, which refers to the fact that new companies often falter because:

A skills profile is a chart that depicts the:

The Savvy Entrepreneurial Firm feature in Chapter 9 focuses on how business founders overcome a lack of business experience. Which of the following was not mentioned as a practical way for a new business founder to overcome a lack of business experience?

What is a skills profile and what is it used for?

Which of the following qualities was not identified in the textbook as a preferred attribute of the founder or founders of a firm?

William Woods recently launched a printing company. One thing William is thinking about creating is a panel of experts who can provide him ongoing direction and advice regarding the future of his business. William is thinking about creating a(n):

Most boards of advisers have between 3 and 5 members.

Which of the following statements is incorrect regarding boards of directors?

James Williams is the Chief Operating Officer of a startup in the health food industry. He is also a member of his firm's board of directors. In board of directors terminology, James is a(n):

According to the textbook, most boards of advisers have between:

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.

Networking is building and maintaining relationships with people whose interests are similar or whose relationship could bring advantages to a firm.

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

A new venture team is the group of founders, key employees, and advisers that move a new venture from an idea to a fully functioning firm.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Developing an Effective Business Model

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

The process of building and maintaining relationships with people whose interests are similar or whose relationship could bring advantages to the firm is called:

Which of the following statements about advisory boards is incorrect?

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

Kate Harrison is in the process of launching an educational services firm. She plans to incorporate the firm. Because the firm will be incorporated, Kate is legally required to have a:

The high failure rate among new ventures is due in part to the liability of newness, which refers to the fact that new companies often falter because:

A skills profile is a chart that depicts the:

The Savvy Entrepreneurial Firm feature in Chapter 9 focuses on how business founders overcome a lack of business experience. Which of the following was not mentioned as a practical way for a new business founder to overcome a lack of business experience?

What is a skills profile and what is it used for?

Which of the following qualities was not identified in the textbook as a preferred attribute of the founder or founders of a firm?

William Woods recently launched a printing company. One thing William is thinking about creating is a panel of experts who can provide him ongoing direction and advice regarding the future of his business. William is thinking about creating a(n):

Most boards of advisers have between 3 and 5 members.

Which of the following statements is incorrect regarding boards of directors?

James Williams is the Chief Operating Officer of a startup in the health food industry. He is also a member of his firm's board of directors. In board of directors terminology, James is a(n):

According to the textbook, most boards of advisers have between:

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.

Networking is building and maintaining relationships with people whose interests are similar or whose relationship could bring advantages to a firm.

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

A new venture team is the group of founders, key employees, and advisers that move a new venture from an idea to a fully functioning firm.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Developing an Effective Business Model

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