Exam 9: Building a New Venture Team

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 ________ in his business plan.

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

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

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

Which of the following was not mentioned in the textbook as a way that lenders and investors add value to a new venture, beyond providing money?

Anna Templeton is preparing to launch a home security firm. The team of people that will launch Anna's firm are as follows: Anna (CEO), Trevor (VP-Finance), Carrie (VP-Sales), a six person Board of Directors, a five person Board of Advisors, and Anna's primary investor, who will assume an advisory role. The group of people that will launch Anna's firm is called its:

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

The Partnering for Success feature in Chapter 9 focuses on iConclude, a company that set up a customer advisory board. The main point of the feature is:

A board of directors has three formal responsibilities: appoint the officers of the firm, oversee the affairs of the corporation, and:

In the context of boards of directors, a ________ is someone who is not employed by the firm.

An advisory board can be established for general purposes or can be set up to address a specific need.

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 firm lacks a "track record" with outside buyers and sellers, is referred to as the:

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

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:

Andy Zackery just launched a firm in the sporting good 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:

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

Which of the following was not identified in the textbook as an attribute of an effective board of directors?

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?

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 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.