Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

A board of directors has three formal responsibilities: appoint the officers of the firm, declare dividends, and:

Accepted Answer

A)  write the firm's strategic plan 
B)  conduct the annual meeting 
C)  provide funding for the firm 
D)  represent the firm in public relations activities 
E)  oversee the affairs of the corporation 
A)  write the firm's strategic plan 
B)  conduct the annual meeting 
C)  provide funding for the firm 
D)  represent the firm in public relations activities 
E)  oversee the affairs of the corporation

Question 4

Melissa Jones just launched a firm in the wireless communications industry. Shortly after the company was launched, Melissa announced that a prominent Silicon Valley venture capitalist had agreed to serve on her board of directors. Melissa knows that such a high quality appointment will send an important message to her potential business partners and clientele. This phenomenon is referred to as:

Accepted Answer

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

Question 5

Jason Andersen just finished writing a business plan for a new type of office supply store. One thing Jason included in the "Management Team & Company Structure" section of his business plan is a chart that depicts the most important skills that are needed for his business and where skills gaps exist. Jason included a(n)________ in his business plan.

Accepted Answer

A)  skills profile 
B)  talent report 
C)  abilities profile 
D)  expertise report 
E)  talent summary 
A)  skills profile 
B)  talent report 
C)  abilities profile 
D)  expertise report 
E)  talent summary

Question 6

The members of homogeneous teams are:

Accepted Answer

A)  diverse in terms of their abilities and experiences 
B)  diverse in terms of their abilities, but very similar in terms of their experiences 
C)  similar in terms of their abilities and experiences 
D)  diverse in terms of their experiences, but very similar in terms of their abilities 
E)  sometimes diverse in terms of their abilities and experiences and sometimes similar along the same dimensions 
A)  diverse in terms of their abilities and experiences 
B)  diverse in terms of their abilities, but very similar in terms of their experiences 
C)  similar in terms of their abilities and experiences 
D)  diverse in terms of their experiences, but very similar in terms of their abilities 
E)  sometimes diverse in terms of their abilities and experiences and sometimes similar along the same dimensions

Question 7

Although a board of directors has formal governance responsibilities, its most useful role is to provide guidance and support to the firm's managers.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Relevant industry experience is a poor predictor of future entrepreneurial performance.

Accepted Answer

A) True 
 B)False

Question 10

Savanna Combs opened a clothing boutique two years ago. Unfortunately, the boutique failed after 18 months. Savanna attributes the failure of her boutique to the facts that her employees couldn't adjust quickly enough to their new roles and that her boutique lacked a "track record" with outside buyers and sellers, which made it difficult to form partnerships and make sales. Savanna suffered from what research calls the:

Accepted Answer

A)  burden of novelty 
B)  millstone of innovation 
C)  liability of newness 
D)  liability of preparedness 
E)  burden of newness 
A)  burden of novelty 
B)  millstone of innovation 
C)  liability of newness 
D)  liability of preparedness 
E)  burden of newness

Question 11

Are more firms started by individuals or founding teams? What are the advantages to founding a firm as a team rather than as an individual?

Accepted Answer

Studies show that more than one individu

Question 12

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 13

Amy Phillips founded a cosmetics firm several years ago. Her firm has grown rapidly and is financially successful. One thing that Amy attributes her success to is that early on she assembled a panel of experts who provided her ongoing direction and advice about her business. What Amy created is called a(n):

Accepted Answer

A)  consultation panel 
B)  suggestion panel 
C)  idea board 
D)  accountability panel 
E)  advisory board 
A)  consultation panel 
B)  suggestion panel 
C)  idea board 
D)  accountability panel 
E)  advisory board

Question 14

A board of directors has three formal responsibilities:

Accepted Answer

A)  periodically update the firm's business plan, declare dividends, and write the firm's marketing plan 
B)  appoint the officers of the firm, declare dividends, and oversee the affairs of the corporation 
C)  write the firm's strategic plan, declare dividends, and conduct the annual meeting 
D)  appoint the officers of the firm, conduct the annual meeting, and submit the firm's annual report to the Securities & Exchange Commission 
E)  provide funding to the firm, write the firm's strategic plan, and submit the firm's annual report to the Securities & Exchange Commission 
A)  periodically update the firm's business plan, declare dividends, and write the firm's marketing plan 
B)  appoint the officers of the firm, declare dividends, and oversee the affairs of the corporation 
C)  write the firm's strategic plan, declare dividends, and conduct the annual meeting 
D)  appoint the officers of the firm, conduct the annual meeting, and submit the firm's annual report to the Securities & Exchange Commission 
E)  provide funding to the firm, write the firm's strategic plan, and submit the firm's annual report to the Securities & Exchange Commission

Question 15

Keith Barnes is a general partner in a venture capital firm that just funded South Florida Software, a software firm in Coral Gables, Florida. South Florida Software is incorporated, and Keith has taken a seat on the firm's board of directors. In board of directors terminology, Keith is a(n):

Accepted Answer

A)  subordinate director 
B)  senior director 
C)  distant director 
D)  inside director 
E)  outside director 
A)  subordinate director 
B)  senior director 
C)  distant director 
D)  inside director 
E)  outside director

Question 16

Prior entrepreneurial experience, relevant industry experience, and networking are attributes that strengthen the chances of a founder's success.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

SCORE is a nonprofit organization that p

Question 18

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

Question 19

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 20

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

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

Which of the following statements about advisory boards is incorrect?

A board of directors has three formal responsibilities: appoint the officers of the firm, declare dividends, and:

The members of homogeneous teams are:

Although a board of directors has formal governance responsibilities, its most useful role is to provide guidance and support to the firm's managers.

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

Relevant industry experience is a poor predictor of future entrepreneurial performance.

Are more firms started by individuals or founding teams? What are the advantages to founding a firm as a team rather than as an individual?

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 has three formal responsibilities:

Keith Barnes is a general partner in a venture capital firm that just funded South Florida Software, a software firm in Coral Gables, Florida. South Florida Software is incorporated, and Keith has taken a seat on the firm's board of directors. In board of directors terminology, Keith is a(n):

Prior entrepreneurial experience, relevant industry experience, and networking are attributes that strengthen the chances of a founder's success.

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

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.

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

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

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

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

Which of the following statements about advisory boards is incorrect?

A board of directors has three formal responsibilities: appoint the officers of the firm, declare dividends, and:

The members of homogeneous teams are:

Although a board of directors has formal governance responsibilities, its most useful role is to provide guidance and support to the firm's managers.

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

Relevant industry experience is a poor predictor of future entrepreneurial performance.

Are more firms started by individuals or founding teams? What are the advantages to founding a firm as a team rather than as an individual?

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 has three formal responsibilities:

Keith Barnes is a general partner in a venture capital firm that just funded South Florida Software, a software firm in Coral Gables, Florida. South Florida Software is incorporated, and Keith has taken a seat on the firm's board of directors. In board of directors terminology, Keith is a(n):

Prior entrepreneurial experience, relevant industry experience, and networking are attributes that strengthen the chances of a founder's success.

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

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.

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

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

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